Historical Milestone: Pakistan Revives Offshore Oil and Gas Exploration After 20 Years with Landmark Sector PactsISLAMABAD

In a major breakthrough for the national economy, Pakistan has officially revived its offshore oil and gas exploration activities after a hiatus of nearly two decades. Federal Minister for Petroleum, Ali Pervaiz Malik, witnessed the formal signing ceremony of Production Sharing Agreements (PSAs) and exploration licenses under the "Offshore Bid Round 2025," marking the completion of the country's latest offshore contractual framework.According to the official handout, Phase-1 of the initial three-year license term will attract an immediate investment of $82 million. If geological assessments prove viable and transition into Phase-2 exploratory drilling, the cumulative investment is projected to surge to approximately $1 billion.Allocation of Blocks Across Indus and Makran BasinsThe Offshore Bid Round 2025 targeted highly prospective zones within the Indus and Makran offshore basins, located adjacent to the coastal boundaries of Sindh and Balochistan. The federal government approved a massive exploration footprint spanning 54,600 square kilometers divided into 23 blocks.While the strategic agreements for two blocks—Offshore Deep-C and Offshore Deep-F—were finalized earlier at the Prime Minister’s House on December 2, 2025, the signing of the remaining 21 production-sharing contracts today successfully concludes the framework.Corporate Distribution: Mari Energies Emerges as Top PlayerThe competitive bidding round saw active participation from premier public and private energy companies:Mari Energies: Secured a dominant footprint, acquiring 18 blocks as the primary operator and an additional 5 blocks as a joint venture partner.OGDCL & PPL: The state-owned giants were collectively allotted 8 exploration blocks, including 2 blocks designated under their direct operations.Prime Global Energies: Awarded 1 block as the principal operator.Joint Venture Consortiums: Other leading energy operators, including United Energy Pakistan Limited and Orient Petroleum Inc., also joined as key stakeholders in the joint ventures.Phases of Exploration and Socio-Economic CommitmentsThe state-backed exploration strategy is structured in two distinct technical operational phases:PhaseOperational FocusPrimary Technical ActivitiesPhase One (Years 1–3)Data Acquisition & AnalyticsComprehensive 2D/3D seismic data collection, digital processing, and rigorous geological & geophysical (G&G) studies.Phase Two (Conditional)Offshore InfrastructurePhysical excavation of exploratory offshore wells to verify commercial quantities of hydrocarbons upon positive Phase-1 data.Parallel to the industrial scope, the bidding companies have pledged a significant corporate commitment toward executing localized social welfare, skill development, and community empowerment infrastructure projects across the coastal belts of Sindh and Balochistan.Ministerial Strategic Directive: Speaking at the ceremony, Federal Minister Ali Pervaiz Malik reiterated that the successful completion of the offshore round reflects transparent, investor-friendly policies. "The enforcement of the revised Offshore Petroleum Rules and the launch of the Model Production Sharing Agreement have reinforced global corporate trust. The government remains dedicated to providing a stable environment to unlock indigenous energy resources and drastically cut down the country's multi-billion dollar fuel import bill," the Minister concluded.