Pakistan has officially reopened its offshore oil and gas exploration sector after nearly two decades, marking a major move to strengthen domestic energy resources and attract local and foreign investment.
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The government signed Production Sharing Agreements (PSAs) and Exploration Licences (ELs) for 23 offshore blocks awarded under the Offshore Bid Round 2025. Federal Petroleum Minister Ali Pervaiz Malik witnessed the signing ceremony.
According to officials, the bid round covered approximately 54,600 square kilometres across the Indus and Makran offshore basins along the coastal areas of Sindh and Balochistan.
The Ministry of Petroleum stated that two blocks had already been awarded in December 2025, while the remaining 21 agreements have now been finalized, completing the offshore licensing process.
Officials described the initiative as an important step towards reviving offshore exploration, encouraging investment, and reducing dependence on imported energy resources.
The ministry noted that Pakistan’s offshore exploration potential covers around 282,623 square kilometres, although only a limited number of exploratory wells have been drilled since independence.
Under the new exploration framework, companies will initially conduct geological and geophysical studies, including seismic surveys and data analysis during the first phase. Exploratory drilling will begin in the second phase if findings indicate commercial potential.
Among the participating companies, Mari Energies emerged as the largest stakeholder, while several national energy firms also secured multiple offshore blocks.
The government estimates initial investment at around $82 million, with the figure potentially rising to nearly $1 billion if projects advance to large-scale exploration and drilling stages.
Authorities also said participating firms have committed to supporting social development and capacity-building initiatives in coastal regions of Sindh and Balochistan, with additional investment expected if commercial reserves are discovered.
