‘Pakistan has vast oil reserves, awards exploration rights to 13 firms’

ISLAMABAD: Federal Minister for Petroleum Ali Pervaiz Malik told the National Assembly on Wednesday that 13 new companies have been awarded contracts for oil exploration in Pakistan.

During the session chaired by Speaker Ayaz Sadiq, Pakistan People’s Party’s (PPP) lawmaker Dr Nafisa Shah moved a calling-attention notice regarding a statement by US President Donald Trump on Pakistan’s oil reserves.

Trump announced on his Truth Social account on July 31 that “we have just concluded a Deal with the Country of Pakistan, whereby Pakistan and the United States will work together on developing their massive Oil Reserves.”

US President added, “We are in the process of choosing the Oil Company that will lead this Partnership. Who knows, maybe they’ll be selling Oil to India some day!”

Vast oil and gas reserves

Responding to the lawmaker’s notice, the petroleum minister said the Pakistan’s tight gas policy was reviewed in 2024 and that vast oil and gas reserves exist in southern Pakistan.

MNAs Dr. Nafisa Shah, Syed Naveed Qamar, Mr. Aijaz Hussain Jakhrani, Ms. Natasha Daultana & Mr. Asad Alam Niazi invited the attention of the Minister for Energy (Petroleum Division), to a matter of urgent public importance regarding statement of United States President Trump… pic.twitter.com/zrHCLOwT71

— National Assembly 🇵🇰 (@NAofPakistan) August 13, 2025

Malik said Pakistan was collaborating with several countries for oil exploration and that the nation has the potential to yield 10 times more oil and gas than what has been discovered so far.

He added that Turkish Petroleum was also set to begin exploration activities in the country.

On August 1, Oil and Gas Development Company Limited (OGDCL) made an oil discovery at the Chakar-1 exploratory well located in the Tando Allah Yar district of Sindh. The well produced 275 barrels of oil per day (BOPD) through a 32/64″ choke at a wellhead flowing pressure (WHFP) of 400 psi. 

New oil exploration contracts

According to the state-run news agency, APP, the minister said that another onshore round for 23 blocks was under way, with awards expected in October, while offshore bidding covering around 40 blocks, including in the Indus and Gwadar belt, was also progressing.

Malik said developing a single onshore exploration well required around US$20–25 million in investment, while offshore wells could cost over US$120 million. “International interest had been received from Turkish, Chinese, Kuwaiti and American companies.”

The minister apprised the session that a USAID-supported 2015 assessment had found shale oil and gas resources in the Lower Indus Basin many times greater than Pakistan’s cumulative extraction over the past 70 years.

NA passes Petroleum (Amendment) Bill 2025

Meanwhile, the National Assembly passed the Petroleum (Amendment) Bill 2025, introducing tougher penalties to curb smuggling, hoarding and unlicensed sale of petroleum products.

The House discussed & passed [The Petroleum (Amendment) Bill, 2025], to amend the Petroleum Act, 1934.

The Bill was moved by Federal Minister for Petroleum, Mr. Ali Pervaiz.#NASession @AliPervaiz450 pic.twitter.com/jX4vXIQHvk

— National Assembly 🇵🇰 (@NAofPakistan) August 13, 2025

Under the legislation, the smuggling of petroleum products will attract a fine of Rs1 million for the first offence and Rs5 million for repeat violations.

Hoarding or operating without a valid licence will result in the sealing of premises, while illegal sales will lead to the confiscation of machinery, equipment, tanks and containers.

The bill makes it mandatory to obtain a licence for the storage of petroleum products. Selling or hoarding without a licence will incur a fine of up to Rs10m. Failure to renew the licence will lead to the closure of the outlet, confiscation of equipment and a penalty of Rs1m.

The use of sealed equipment or goods will carry a fine of Rs100 million and cancellation of the licence while the confiscated equipment will be auctioned under the Customs Act.

Under the amended law, assistant commissioners, on the instructions of the deputy commissioner, will be authorised to take action against the violators.