By SKM
October 4, 2025
ISLAMABAD: In a stunning setback to Pakistan’s energy ambitions, the country’s latest oil and gas licensing round has ended in near-total failure — with 22 out of 23 exploration blocks receiving no bids. The only submission came from Mari Energy, which offered a modest 131 work units for just one block. Not a single international or other domestic exploration and production (E&P) company participated.
The Directorate General of Petroleum Concessions (DGPC) had offered 23 onshore blocks on October 2, spanning approximately 55,000 square kilometers across Baluchistan, Punjab, Sindh, and Khyber Pakhtunkhwa (KPK). Industry experts have called the outcome the worst in the country’s upstream bidding history, raising serious concerns about the planning, promotion, and credibility of the entire process.
Despite the magnitude of the failure, Petroleum Minister Ali Pervaiz Malik did not respond to media inquiries. A detailed question was sent to him on the day of the bidding, asking whether he considered the outcome a failure and why no roadshows were conducted to attract investors. Even after a lapse of two days, the minister remained silent.
The same query was also sent to Secretary Petroleum Momin Agha, Additional Secretary, and Zafar Abbas, spokesperson for the Ministry of Energy (Petroleum Division). All three declined to comment. Their silence has deepened concerns within the energy sector, with officials and experts calling the bidding process an “unprecedented stealth operation.”
According to sources close to the development, the bidding round lacked even the most basic elements of investor engagement. Unlike previous rounds—where Pakistan organized promotional roadshows in international energy hubs such as London, Dubai, Houston, and Calgary—this time there was no visibility, no outreach, and no effort to market the blocks to potential investors.
“This was a textbook example of how not to run a licensing round,” said a former DGPC official. “No visibility, no investor outreach, no competitive environment—just one token bid from a domestic player. It’s beyond disappointing.”
The blocks offered in the failed round spanned all four provinces. From Baluchistan, the blocks included Parkini-II Block A and B (Zone-I), Rasmalan-II and Rasmalan-II West (Zone-I), Chhalgari (Zone-II), Block 28 North (Zone-I), Sohbat Pur (Zone-II), Naoukandi (Zone-I F), and Naoukandi South (Zone-I F). From the Baluchistan/Sindh region, Dera Jamal Murad (Zone-II) and Kot Magsi (Zone-III) were offered.
In Sindh, Zamzama-II South and Kambar (Zone-III) were included, while Punjab had the largest share with Alipur-II, Layyah-II, Khanpur-II, Rachna-II, Multan North-II, Hetu-II, Ladhana-II, and Fateh Pur-II (all in Zone-II). From Khyber Pakhtunkhwa, D.I. Khan West and Paharpur-II (Zone-I) were on offer.
With only one block receiving a bid, industry experts warn that many of these areas may now be difficult to market in future rounds. Globally, blocks that go unbid often carry a stigma, creating the perception that they lack either geological promise or political and regulatory stability.
“Once a block ends up in the ‘no-bid’ category, it’s usually dead on arrival the next time,” said an upstream analyst. “We may have just lost access to 55,000 square kilometers of potential hydrocarbon reserves due to institutional neglect and poor leadership.”
The timing of this failure is particularly troubling. Pakistan is grappling with a growing energy crisis, ballooning fuel import bills, and rapidly depleting local gas reserves. Without new exploration and discoveries, the country’s energy future is at serious risk.
Ultimately, experts believe this disaster was entirely avoidable. Past bidding rounds saw strong responses when structured transparently and marketed strategically. The collapse of this round, they argue, reflects not a geological failure, but a failure of governance.
“It’s not that the country lacks potential,” said one senior energy insider. “It’s that the people in charge lacked preparation, leadership, and the will to engage the global market. That’s the real tragedy.”
Unless the Petroleum Division swiftly addresses these shortcomings with accountability and reform, Pakistan risks falling further behind in the global energy race—leaving vast underground resources untapped and a nation of over 240 million increasingly dependent on costly energy imports.
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