Pakistan Awards 23 Offshore Exploration Blocks After Two Decades

Initial exploration phase to bring $80 million investment; total investment may reach $1 billion

Pakistan has achieved a major breakthrough in its offshore oil and gas sector after nearly two decades, awarding 23 offshore exploration blocks to four local-led consortia, some partnered with international firms, including Turkiye’s national oil company TPAO.

The development marks a revival of investor confidence in Pakistan’s upstream energy industry and signals a new era of exploration in the country’s offshore basins.

First offshore bidding round in 20 years

In its first offshore bidding round since the early 2000s, the Ministry of Energy (Petroleum Division) announced that 23 out of 40 offered blocks — covering approximately 53,510 square kilometers — were awarded to winning consortia.

According to the Petroleum Division, the initial exploration phase will attract an investment of $80 million, while total investment during the drilling phase could rise to $1 billion.

Officials hailed the development as a “historic milestone” in efforts to unlock Pakistan’s untapped offshore hydrocarbon reserves.

“This success reflects the global energy sector’s renewed confidence in Pakistan’s stable exploration policies and its growing potential in offshore energy,” the Petroleum Division said in a statement.

Key players: Local-led consortia with global partners

The winning consortia are led by:

• Oil and Gas Development Company Limited (OGDCL)
• Pakistan Petroleum Limited (PPL)
• Mari Energies
• Prime Energy, backed by Hub Power Company (Hubco)

Among foreign participants, Turkiye’s TPAO secured a 25% stake in one awarded block, operating it in partnership with PPL under a joint bidding agreement. Other partners include United Energy Group (Hong Kong), Orient Petroleum, and Fatima Petroleum, part of Pakistan’s Fatima Group.

Exploration focus: Indus and Makran basins

The awarded blocks lie within the Indus and Makran offshore basins, where geological indicators suggest promising hydrocarbon potential.

Officials said the dual-basin exploration strategy enhances data collection, geological understanding, and overall resource mapping efficiency.

“This simultaneous exploration approach allows Pakistan to accelerate offshore energy development while reducing dependency on imported fuels,” an official added.

Next steps: Studies, seismic surveys, and drilling

Under Phase I, the exploration companies will conduct geophysical and geological studies, including seismic data acquisition, processing, and interpretation to evaluate the hydrocarbon prospects.

Following positive results, Phase II will commence — involving drilling of exploratory wells in identified high-potential zones.

If successful, the exploration could help expand domestic energy reserves, create new jobs, and reduce the national import bill.

Untapped potential in Pakistan’s offshore zone

Pakistan’s offshore zone spans nearly 300,000 square kilometers, adjacent to the resource-rich waters of Oman, the UAE, and Iran. Despite this, only 18 wells have been drilled since independence — far too few to assess the region’s true potential.

A recent DeGolyer and MacNaughton basin study indicated substantial undiscovered hydrocarbon potential in Pakistan’s offshore area.

The country’s last major offshore exploration effort, Kekra-1 (2019) — led by ExxonMobil — ended without discovery. The new bidding round, however, represents a strong revival of international interest and a fresh opportunity for energy self-reliance.