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May 22, 2026
Pakistan Resumes Offshore Oil, Gas Exploration after Two Decades, Eyes $1 Billion InvestmentIslamabad: Pakistan has resumed offshore oil and gas exploration after nearly two decades, the petroleum ministry said on Wednesday, as Islamabad seeks to reduce dependence on imported fuel and revive interest in its underexplored maritime energy resources.
Pakistan remains heavily dependent on imported oil, gas and liquefied natural gas to meet its energy needs, leaving the country vulnerable to global price shocks and foreign exchange pressure. Offshore exploration has remained limited for years because of high drilling costs, technical risks, security concerns and repeated unsuccessful attempts to find commercially viable reserves.
Pakistan’s last major offshore push was the ultra-deepwater Kekra-1 well in 2019, drilled by a consortium including ExxonMobil, ENI, Oil and Gas Development Company Limited and Pakistan Petroleum Limited, but the well was later declared dry. The country’s offshore basins, particularly the Indus and Makran basins, are still considered underexplored compared with many regional energy frontiers.
“Pakistan has resumed offshore oil and gas exploration after nearly two decades,” the petroleum ministry said in a statement after Petroleum Minister Ali Pervaiz Malik attended a signing ceremony for production-sharing agreements and exploration licenses under Offshore Bid Round 2025.
The ministry said $82 million would be invested during the first three-year phase of the licenses, which would include seismic data acquisition, processing and geological and geophysical studies.
“If exploration progresses to drilling during Phase Two, total investment is expected to reach nearly $1 billion,” the statement said.
The government approved 23 offshore blocks covering 54,600 square kilometers under the bid round, located in the Indus and Makran offshore basins near the coastal areas of the Sindh and Balochistan provinces.
Agreements for two blocks, Offshore Deep-C and Offshore Deep-F, were finalized at the Prime Minister’s House on Dec 2, 2025. The petroleum ministry said the signing of 21 additional production-sharing agreements had completed the contractual framework for Offshore Bid Round 2025.
“Signing the offshore oil and gas exploration agreements is a historic milestone in the government’s energy policy,” Malik said.
“The government is committed to reviving offshore exploration, promoting investment and reducing dependence on imported fuel ... These agreements reflect investor confidence in Pakistan’s offshore oil and gas potential.”
Mari Energies, one of Pakistan’s largest private exploration and production firms, secured 18 of the 23 blocks as operator and five as a joint venture partner, while state-run Oil and Gas Development Company Limited (OGDCL) and Pakistan Petroleum Limited (PPL) were allocated eight exploration blocks, including two as operators. Prime Global Energies, a local exploration company, was awarded one block as operator.
United Energy Pakistan Limited and Orient Petroleum Incorporated are among other joint venture partners participating in the projects. - AN
Courtesy AN
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