Pakistan has restarted offshore oil and gas exploration after nearly two decades, signing a series of production-sharing agreements and exploration licenses under the Offshore Bid Round 2025.
The activity is Pakistan's first major offshore exploration drive in nearly 20 years. The government approved 23 blocks covering 54,600 square kilometers in the Indus and Makran offshore basins.
The blocks lie adjacent to the coastal areas of Sindh and Balochistan.
The framework was completed with the signing of 21 production-sharing agreements on Wednesday, alongside two finalized earlier. Federal Petroleum Minister Ali Pervaiz Malik attended the signing ceremony.
How much will Pakistan invest in offshore exploration?
The initial three-year license period under Phase One involves an investment of $82 million. It will focus on seismic data acquisition, processing, and geological and geophysical studies.
Total investment could rise to nearly $1 billion in Phase Two. That would happen if exploration activities advance to offshore drilling operations.
If Phase One studies produce positive results, exploration wells would be drilled offshore during Phase Two.
Which companies won the offshore blocks?
Mari Energies secured 18 of the 23 blocks as operator, along with five additional blocks as a joint venture partner.
Oil and Gas Development Company Limited and Pakistan Petroleum Limited were allocated eight exploration blocks, including two as operators.
Prime Global Energies received one block as operator. United Energy Pakistan Limited and Orient Petroleum Inc. participated as joint venture partners.
When were the offshore agreements signed?
Agreements for two blocks, Offshore Deep-C and Offshore Deep-F, were finalized at the Prime Minister's House on December 2, 2025.
With the signing of 21 additional production-sharing agreements on Wednesday, the contractual framework for Offshore Bid Round 2025 is now complete.
Why is offshore exploration important for Pakistan?
Malik described the signing as a "historic milestone" in Pakistan's energy policy. He said the revival reflects the government's commitment to attracting investment and reducing dependence on imported fuels.
The minister said the agreements demonstrated investor confidence in Pakistan's offshore hydrocarbon potential. He linked the successful bid round to transparent and investor-friendly policies.
Malik said the Offshore Petroleum Rules and a model production-sharing agreement would strengthen transparency and improve investor confidence.
What benefits will coastal communities receive?
Participating companies have committed to social welfare and capacity-building projects in the coastal regions of Sindh and Balochistan.
Malik said the government would continue to provide a stable, transparent, and investor-friendly environment. The aim is to support the sustainable development of Pakistan's domestic energy resources.
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