Business Recorder
ISLAMABAD: Federal Minister for Petroleum Ali Pervaiz Malik on Wednesday witnessed the signing ceremony of Production Sharing Agreements (PSAs) and Exploration Licences (ELs) for offshore exploration blocks awarded under the Offshore Bid Round 2025, marking the formal reopening of Pakistan’s offshore frontier after nearly two decades. The awarded blocks are located in the Indus and Makran offshore basins adjoining the territorial waters of Sindh and Balochistan. The Offshore Bid Round 2025 attracted bids covering approximately 54,600 square kilometres of Pakistan’s offshore area, resulting in the award of 23 offshore blocks. READ MORE: Pakistani E&Ps sign agreements for three offshore, two onshore exploration blocks Two offshore blocks awarded under the same bid round, Offshore Deep-C and Offshore Deep-F, had earlier been executed on December 2, 2025, with Mari Energies Limited, Turkish Petroleum Overseas Company (TPOC), and Fatima Petroleum Company Limited during a ceremony held at the Prime Minister’s Office. With the signing of the remaining 21 PSAs, the contractual framework for the entire Offshore Bid Round 2025 portfolio now stands fully completed. Speaking at the ceremony, the Federal Minister for Petroleum termed the signing a defining milestone in the Government’s efforts to revitalise offshore exploration, attract both foreign and domestic investment, and reduce reliance on imported energy. He noted that the agreements reflect strong investor confidence in Pakistan’s offshore upstream potential, a frontier spanning 282,623 square kilometres, where only 18 exploratory wells have been drilled since independence. The minister further highlighted that the successful completion of the offshore bid round reflects the government’s commitment to positioning Pakistan as a credible and competitive offshore destination through a transparent and investor-friendly regulatory framework. This includes the promulgation of the Offshore Petroleum Rules and the introduction of a Model Production Sharing Agreement incorporated within the bid package to enhance transparency, competitiveness, and investor confidence. Mari Energies Limited emerged as the most active participant in the 23 offshore blocks, including 18 blocks as Operator and five blocks as a joint venture partner with other exploration and production companies. Oil and Gas Development Company Limited (OGDCL) and Pakistan Petroleum Limited (PPL) have each been awarded eight exploration blocks each, including two blocks as operators. Prime Global Energies Limited has also been awarded one block as operator. United Energy Pakistan Limited (UEP) and Orient Petroleum Incorporation (OPI), alongside other joint venture partners, also participated in the signing ceremony. Collectively, the awarded blocks represent an investment of approximately USD 82 million during Phase I of the initial three-year licence period. Total investment is projected to increase to approximately USD 1 billion if exploration activities progress to Phase-II drilling operations. Phase-I activities will involve extensive geological and geophysical studies, including seismic data acquisition, processing, and interpretation, aimed at better defining the hydrocarbon potential of Pakistan’s offshore basins. Subject to encouraging results, Phase II will involve the drilling of exploratory wells in prospective offshore areas. Copyright Business Recorder, 2026
Go to News Site