By SKM
May 20, 2026
ISLAMABAD: Pakistan has formally reopened its offshore frontier to oil and gas exploration after nearly two decades, securing an initial investment commitment of $82 million that could eventually rise to nearly $1 billion if deep-water drilling moves ahead.
At a high-profile ceremony on Wednesday, Federal Minister for Petroleum Ali Pervaiz Malik signed 21 Production Sharing Agreements (PSAs) and exploration licenses under Offshore Bid Round 2025, completing the contractual framework for a total of 23 offshore blocks spread across 54,600 square kilometers in the Indus and Makran basins.
Two offshore blocks — Offshore Deep-C and Offshore Deep-F — had already been awarded earlier on December 2, 2025, during a ceremony at the Prime Minister’s Office involving Mari Energies Limited, Turkish Petroleum Overseas Company, and Fatima Petroleum Company Limited.
The latest signing marks one of Pakistan’s most ambitious offshore energy initiatives in decades as the government seeks to reduce dependence on imported fuels and strengthen long-term energy security amid persistent balance-of-payments pressures.
Despite possessing a maritime economic zone exceeding 282,000 square kilometers, Pakistan has drilled only 18 offshore exploratory wells since independence in 1947, leaving vast stretches of its coastal waters largely unexplored.
Industry officials described the aggressive participation in the bidding round as a sign of renewed investor confidence in Pakistan’s upstream energy sector following reforms aimed at improving transparency and regulatory certainty.
The biggest winner of the offshore bidding round was Mari Energies Limited, which secured stakes in all 23 exploration blocks. The company will operate 18 blocks while participating as a joint venture partner in the remaining five.
State-owned giants Oil and Gas Development Company Limited and Pakistan Petroleum Limited also emerged as key players, obtaining interests in eight offshore blocks each.
International firms, including Turkish Petroleum Overseas Company and United Energy Pakistan, joined the venture portfolio, bringing foreign technical expertise and offshore operational experience.
Under the agreements, the exploration work has been divided into two phases to manage financial and operational risks associated with offshore drilling.
During the initial three-year Phase-I period, companies are expected to spend the committed $82 million on geological and geophysical surveys, including advanced seismic mapping of offshore areas along the Sindh and Balochistan coastline. These studies will help identify potential hydrocarbon reserves beneath the seabed.
If commercially viable prospects are identified, the projects will move into Phase-II, potentially unlocking investments of up to $1 billion for deep-water drilling and field development activities.
Officials said successful discoveries could significantly reduce Pakistan’s fuel import bill, attract additional foreign investment, and stimulate economic activity in coastal regions. The agreements also require exploration companies to undertake social welfare and capacity-building initiatives in local communities.
Government officials disclosed that several other international energy companies are currently reviewing Pakistan’s offshore data packages, indicating broader global interest in the country’s underexplored maritime energy potential.Ends
