Pakistan awards 11 onshore oil and gas blocks to boost domestic energy

Pakistan has awarded 11 onshore oil and gas exploration blocks to state-run and private companies in a bid to boost domestic energy production and attract fresh investment, officials said Thursday.

Federal Minister for Petroleum Ali Pervaiz Malik attended the signing ceremony for petroleum concession agreements and exploration licenses at the Ministry of Energy in Islamabad.

Under the agreements, companies are expected to invest 8.66 billion Pakistani rupees (about $31 million) in exploration activities over the next three years. An additional 276 million rupees will be spent on social welfare projects in the respective areas, according to an official statement.

The blocks were awarded to a mix of state-owned and private firms, including Oil and Gas Development Company Limited, Pakistan Petroleum Limited, Mari Energies Limited, Pakistan Oilfields Limited, and Prime Global Energies.

Malik described the agreements as a “significant milestone” in the government’s efforts to develop local energy resources and attract investment.

“The execution of these agreements reflects investors’ confidence in the potential of Pakistan’s upstream sector,” Malik said. “The government remains committed to providing a stable, investor-friendly environment to promote exploration activities.”

He said the planned investment would help create new jobs and contribute to economic growth.

Eight of the awarded blocks are located in southwestern Balochistan province, two in Sindh province and one in Punjab province.

Separately, Oil and Gas Development Company Limited (OGDC), Pakistan’s largest exploration and production company, signed petroleum concession agreements for five of the newly awarded blocks following a competitive bidding round held April 30, 2025. Provisional awards had been announced earlier.

Under the new arrangements, OGDC will operate three blocks and hold non-operating joint venture stakes in two others.

OGDC will operate the Kalat North Block in Balochistan with a 75% working interest, partnering with Prime Global Energies, which holds 25%. The block covers parts of Nushki, Mastung, Kharan, and Kalat districts.

In Punjab, OGDC will operate the Khui-II Block with a 60% working interest, while Mari Energies Limited holds the remaining 40%. In Sindh’s Jamshoro district, OGDC will act as operator of the Naing Sharif Block with an 80% working interest, alongside Prime Global Energies, which holds 20%.

OGDC also secured non-operating stakes in two additional blocks. In the Ahmed Wal Block in Balochistan’s Nushki district, OGDC holds a 40% working interest, while Mari Energies will serve as operator with a 60% share.

In the Kalat South Block, also in Balochistan, OGDC has acquired a 30% stake. Pakistan Petroleum Limited will act as operator with a 40% interest, and Mari Energies will hold the remaining 30%.

Company officials said the new additions reinforce OGDC’s commitment to accelerating hydrocarbon exploration, strengthening domestic energy security, and supporting development in frontier and underexplored regions.