PPL forms strategic offshore partnership with Turkish Petroleum

ISLAMABAD/KARACHI: Pakistan Petroleum Limited (PPL) has announced a strategic offshore partnership with Turkish Petroleum Overseas Company (TPOC), a wholly owned subsidiary of Turkiye Petrolleri Anonim Ortakligi (TPAO), Turkiye’s national oil company. The partnership marks a key milestone in the ongoing farm-out process for the Eastern Offshore Indus Block-C.

According to a statement issued by PPL on Tuesday, the collaboration stems from high-level engagements between the governments of Pakistan and Turkiye. It reflects a broader diplomatic push to deepen bilateral cooperation in the energy sector and encourage foreign direct investment (FDI) in Pakistan’s offshore exploration activities.

As part of the agreement, PPL has transferred the operatorship of the Eastern Offshore Indus Block-C to TPOC, subject to regulatory approvals. This move is designed to align Pakistan’s offshore operations with international best practices and enhance the technical capabilities of the country’s energy sector. The initiative also symbolises the deepening ‘brotherly’ ties between the two nations.

In parallel, PPL also engaged two domestic energy giants — Oil and Gas Development Company Limited (OGDCL) and Mari Energies Limited (MariEnergies) — in the farm-out process. Following detailed due diligence, all four companies successfully executed a multi-party farm-out agreement.

Under the terms of the deal, PPL will retain a 35 per cent participating interest (PI) in the block. TPOC will assume a 25 per cent PI along with operatorship, while OGDCL and MariEnergies will each take a 20 per cent PI. Despite ceding operatorship, PPL will continue to play a significant role in the block’s development, leveraging its experience and regional knowledge.

This collaboration is seen as a pivotal step toward unlocking the hydrocarbon potential of Pakistan’s offshore territory, particularly in the Arabian Sea, which remains largely underexplored. With TPOC bringing in advanced offshore exploration technology and expertise, the partnership is expected to accelerate exploration efforts and mitigate technical and financial risks traditionally associated with offshore drilling in Pakistan.

Energy experts have welcomed the move, noting that the entry of a major international operator, backed by a friendly state, could not only revitalize Pakistan’s offshore ambitions but also enhance investor confidence across the broader oil and gas sector.

The agreement also underscores the strengthening of economic and strategic ties between Pakistan and Turkiye, with energy cooperation emerging as a key pillar of their bilateral relationship. Both governments have signalled strong support for the partnership, viewing it as a model for future joint ventures in critical sectors.

With regulatory approvals pending, stakeholders anticipate that exploration activities in the Indus Block-C will soon gain momentum. If successful, the venture could serve as a blueprint for future offshore collaborations, positioning Pakistan as a more attractive destination for international energy investment, the statement added.