Islamabad, May 20, 2026: Pakistan has formally reopened its offshore exploration frontier after nearly two decades, with the government signing Production Sharing Agreements (PSAs) and Exploration Licences (ELs) for 23 offshore blocks awarded under the Offshore Bid Round 2025.
Federal Minister for Petroleum Ali Pervaiz Malik witnessed the signing ceremony for the offshore exploration blocks located in the Indus and Makran offshore basins adjoining the territorial waters of Sindh and Balochistan.
According to the Petroleum Division, the Offshore Bid Round 2025 attracted bids covering approximately 54,600 square kilometres of Pakistan’s offshore territory, resulting in the award of 23 offshore blocks.
The ministry stated that two offshore blocks — Offshore Deep-C and Offshore Deep-F — had already been executed on December 2, 2025, with Mari Energies Limited, Turkish Petroleum Overseas Company and Fatima Petroleum Company Limited during a ceremony held at the Prime Minister’s Office.
With the signing of the remaining 21 agreements, the contractual framework for the entire Offshore Bid Round 2025 portfolio now stands completed.
Speaking at the ceremony, Petroleum Minister Ali Pervaiz Malik described the development as a major milestone in efforts to revive offshore exploration, attract local and foreign investment, and reduce Pakistan’s dependence on imported energy.
He said the agreements reflected investor confidence in Pakistan’s offshore upstream potential spanning around 282,623 square kilometres, where only 18 exploratory wells have been drilled since independence.
The minister added that the successful completion of the offshore bid round demonstrated the government’s commitment to positioning Pakistan as a competitive offshore destination through transparent and investor-friendly regulations.
He said the framework included the promulgation of Offshore Petroleum Rules and the introduction of a Model Production Sharing Agreement aimed at improving transparency, competitiveness, and investor confidence.
Among the participating companies, Mari Energies Limited emerged as the most active participant, securing involvement in all 23 offshore blocks, including 18 as operator and five as a joint venture partner.
Oil and Gas Development Company Limited and Pakistan Petroleum Limited were each awarded eight exploration blocks, including two blocks each as operators.
Prime Global Energies Limited secured one block as operator, while United Energy Pakistan Limited and Orient Petroleum Incorporation also participated alongside other joint venture partners.
The Petroleum Division said the awarded blocks represent an estimated investment of approximately $82 million during the first phase of the initial three-year licence period.
According to the division, the total investment could rise to nearly $1 billion if exploration activities advance to second-phase drilling operations.
First-phase activities will include geological and geophysical studies, seismic data acquisition, processing, and interpretation to assess hydrocarbon potential in offshore basins. Subject to encouraging results, exploratory drilling operations will be carried out during the second phase in prospective offshore areas.
The award-winning companies have also committed to social welfare and capacity-building initiatives in the coastal regions of Sindh and Balochistan.
The Petroleum Division said substantial follow-on investments worth hundreds of millions of dollars are expected if commercial hydrocarbon discoveries are made.
