Government signs offshore exploration agreements for 21 blocks under Bid Round 2025
Pakistan has formally reopened its offshore oil and gas exploration frontier after nearly two decades, with the signing of Production Sharing Agreements (PSAs) and Exploration Licences (ELs) for offshore blocks awarded under Offshore Bid Round 2025.
Federal Minister for Petroleum Ali Pervaiz Malik witnessed the signing ceremony on Wednesday, describing the development as a major milestone in efforts to revive offshore exploration, attract investment, and reduce dependence on imported energy.
The awarded blocks are located in the Indus and Makran offshore basins adjoining the territorial waters of Sindh and Balochistan.
Officials said the Offshore Bid Round 2025 attracted bids covering around 54,600 square kilometres of offshore territory, resulting in the award of 23 exploration blocks.
Two blocks — Offshore Deep-C and Offshore Deep-F — had already been executed in December 2025 with Mari Energies Limited, Turkish Petroleum Overseas Company and Fatima Petroleum Company Limited.
With the signing of the remaining 21 agreements, the contractual framework for the entire offshore bid round has now been completed.
The petroleum minister said the agreements reflected growing investor confidence in Pakistan’s offshore hydrocarbon potential, noting that only 18 exploratory wells have been drilled in the country’s offshore region since independence despite an offshore area spanning more than 282,000 square kilometres.
He added that the government had introduced reforms including Offshore Petroleum Rules and a Model Production Sharing Agreement to improve transparency, competitiveness, and investor confidence.
Mari Energies Limited emerged as the most active participant, securing interests in 23 offshore blocks, including 18 as operator.
Oil and Gas Development Company Limited (OGDCL) and Pakistan Petroleum Limited (PPL) were each awarded eight exploration blocks, including two operated blocks each.
Prime Global Energies Limited also secured one block as operator, while United Energy Pakistan Limited and Orient Petroleum Incorporation participated as joint venture partners.
Officials estimated that the awarded blocks would attract approximately $82 million in investment during the initial three-year Phase-I licence period.
Total investment could rise to nearly $1 billion if exploration advances to Phase-II drilling operations.
Phase-I activities will focus on geological and geophysical studies, including seismic data acquisition, processing and interpretation to assess hydrocarbon potential in offshore basins.
Authorities said successful discoveries could lead to major investments in field development and production, while also creating jobs, supporting technology transfer and reducing Pakistan’s energy import bill.
The Petroleum Division said it plans to engage leading international energy companies in future offshore exploration phases, with several global firms already reviewing available offshore data.
