Govt awards first offshore oil, gas exploration blocks after 18 years

ISLAMABAD: In a landmark step towards achieving energy independence, Pakistan has relaunched offshore oil and gas exploration after nearly two decades, announcing results of Offshore Bid Round 2025.

The relaunching of offshore oil and gas exploration has been described a milestone expected to unlock billions of dollars in potential investments and reignite global interest in Pakistan’s energy frontier.

Ministry of Energy (Petroleum Division) unveiled the successful bids at a public ceremony chaired by Director General Petroleum Concessions (DGPC), with representatives from governments of Sindh and Balochistan in attendance. The event marked culmination of months of competitive bidding for 40 offshore blocks, offered earlier this year for exploration in Indus and Makran basins.

The round attracted significant attention from both local and international energy firms, with 23 blocks receiving bids covering an expansive 53,510 square kilometres. Officials described the outcome as “highly encouraging,” reflecting renewed confidence in Pakistan’s upstream oil and gas sector.

Among the successful bidders are Pakistan’s major national energy companies — Oil and Gas Development Company Limited (OGDCL), Pakistan Petroleum Limited (PPL), MariEnergies, and Prime Energy. Joining them are leading international and private-sector players, such as Turkish Petroleum (TPAO), United Energy, Orient Petroleum and Fatima Petroleum.

During Phase-I, spanning three years, the companies have collectively committed 4,427 work units, representing an investment of approximately $80 million for geological and geophysical (G&G) studies, including advanced seismic data acquisition, processing, and interpretation. Depending on success of early findings and subsequent drilling operations, total investment could surge to between $750 million and $1 billion.

The 2025 bid round was preceded by major institutional reforms and technical groundwork. Ministry of Energy developed a new Model Production Sharing Agreement (MPSA) to ensure transparency, competitiveness, and investor confidence, while also promulgating Offshore Petroleum Rules, creating a clear and stable regulatory framework for investors.

A comprehensive basin study by US-based firm DeGolyer and MacNaughton (D&M) recently indicated significant “yet-to-find” hydrocarbon potential in Pakistan’s offshore basins, particularly Indus Offshore Basin. This finding reignited optimism about offshore exploration prospects that had remained largely untapped for nearly two decades.

“The study reaffirmed what our geologists have long believed — that Pakistan’s offshore holds immense untapped potential”, a senior Energy Ministry official said. “This bid round is a confident step toward realising that promise”, he added.

One of the most notable outcomes of this round is participation of Türkiye’s national oil company, Turkish Petroleum (TPAO), which has acquired a 25 percent stake and operatorship in Offshore Block-C. Officials hailed this as a significant milestone in bilateral cooperation and a vote of confidence from a long-standing strategic partner.

TPAO’s involvement, along with growing interest from other global energy players, underscores potential of Pakistan’s offshore frontier and success of its recent energy-sector reforms in attracting credible international investors.

During Phase-I, exploration companies will focus on G&G studies and data acquisition to map geological structures and assess reservoir potential. Once this phase is completed, companies will proceed to Phase-II, which will include exploratory drilling in the most promising areas.

Pakistan’s strategy to pursue exploration in both Indus and Makran basins simultaneously has paid off, according to officials. The government now plans to build on this momentum by inviting major global oil companies to participate in the next phase of offshore exploration.

Several leading firms are reportedly already reviewing available geological data and engaging with Pakistani authorities and local partners.

Prime Minister Shehbaz Sharif praised the proactive participation of both national and foreign companies, describing the bid round as a “turning point” for Pakistan’s energy future.

“This marks the dawn of a new offshore era for Pakistan”, Prime Minister stated. “Our goal is to strengthen energy security, reduce dependence on imports, and develop our own resources through partnerships that bring technology, investment, and expertise”, he said. He congratulated successful bidders and assured them of full government support to fast-track exploration work and to create a conducive environment for investment.

The Offshore Bid Round 2025 is not only a revival of offshore exploration, but also a symbol of Pakistan’s renewed commitment to self-reliance, sustainability, and energy diversification.

By combining technical reforms, transparent bidding, and international collaboration, Pakistan aims to transform its offshore basins into a cornerstone of national energy development.

If successful, current exploration efforts could pave the way for one of Pakistan’s largest-ever energy discoveries, reshaping country’s energy landscape for decades to come.