Pakistan receives successful bids for offshore oil, gas exploration after 20 years

ISLAMABAD: After nearly two decades, Pakistan has received successful bids for offshore oil and gas exploration, marking a major step toward energy security and self-reliance.

According to a statement issued by the Petroleum Division, Ministry of Energy, the results of the Offshore Bid Round 2025, launched in January after an 18-year gap, offering exploration licenses in 40 offshore blocks.

The initiative aligns with Prime Minister Shehbaz Sharif’s vision of promoting domestic energy resources and reducing reliance on imports.

Before inviting bids, the Ministry introduced a Model Production Sharing Agreement (MPSA) and promulgated new Offshore Petroleum Rules to ensure transparency, competitiveness, and investor confidence.

A recent study by the U.S.-based firm DeGolyer and MacNaughton (D&M) highlighted a significant untapped potential of hydrocarbons in Pakistan’s offshore basins. Building on this assessment, the bid round was aimed at encouraging exploration across the Indus and Makran basins.

The bids were publicly opened on Thursday by the Bid Opening Committee, chaired by the Director General Petroleum Concessions (DGPC), in the presence of representatives from Sindh and Balochistan — the two coastal provinces hosting the exploration areas.

The round drew strong interest from both local and foreign investors, with bids submitted for 23 offshore blocks covering approximately 53,510 square kilometres.

Among the successful bidders are Pakistan’s leading energy firms — OGDCL, PPL, MariEnergies, and Prime Energy — along with international and private-sector partners, including Turkish Petroleum, United Energy, Orient Petroleum, and Fatima Petroleum.

Under the initial three-year license period, the companies have committed 4,427 work units, representing an investment of around USD 80 million. Total investment could rise to USD 750 million to USD 1 billion if exploration drilling proceeds.

During the first phase, companies will conduct extensive geological and geophysical studies — including seismic data collection and interpretation — to assess hydrocarbon prospects in the offshore zones. The second phase will focus on exploratory drilling in identified promising areas.

Officials said Pakistan’s strategy to simultaneously open exploration in both the Indus and Makran basins has paid off, with strong participation reflecting investor confidence in the country’s upstream sector. Once the initial studies and planning are complete, the government plans to invite global oil majors to join the next phase. Several leading companies are already reviewing available data and holding discussions with local partners.

In a recent development, Turkish Petroleum (TPAO), Türkiye’s national oil company, acquired a 25 per cent stake and operatorship in offshore block-C.

Prime Minister Shehbaz Sharif lauded the participation of local and international firms, terming it a “milestone toward unlocking Pakistan’s offshore potential.” He congratulated the successful bidders and assured them of the government’s full support to accelerate exploration efforts.