The Ministry of Energy on Friday announced that the country has awarded 23 offshore exploration blocks to four consortia, in the first bidding round after 18 years.

In a statement, the energy minister stated that the bids were awarded to consortia led by local energy companies, while some partnered with foreign firms, including Turkiye's national oil company TPAO.

The 23 offshore blocks offered, out of the 40, cover around 53,500 square kilometres, it added.

The energy ministry listed state-run Oil and Gas Development Co. Ltd (OGDCL), Pakistan Petroleum Ltd (PPL) and MariEnergies, along with privately-owned Prime Energy, which is backed by Pakistan's Hub Power Company (Hubco), among the successful bidders.

TPAO secured a 25% stake in one of the awarded blocks and the right to operate it after signing a joint bidding agreement with the PPL earlier this year to explore the country's offshore prospects.

Other partners include Hong Kong-based United Energy Group, Orient Petroleum, a major local independent producer, and Fatima Petroleum, part of Pakistan's Fatima Group conglomerate.

The four winning consortiums, led by OGDCL, PPL, Mari Petroleum and Prime Energy, collectively pledged about $80 million in exploration work over the initial three-year period, the energy ministry said.

Total investment could rise to between $750 million and $1 billion if drilling proceeds, it added.

A recent basin assessment study by DeGolyer and MacNaughton, a US petroleum consulting firm, indicated the presence of a significant yet-to-be-found potential of hydrocarbons in Pakistan's offshore basins.

The federal government later announced the launch of the Offshore Bid Round 2025, aimed at offering blocks to companies for exploration efforts across the Indus and Makran basins.

Meanwhile, the energy minister said that Phase-I of the agreement will allow the companies to conduct comprehensive geophysical and geological studies.

These studies include seismic data acquisition, processing, and interpretation to better define the hydrocarbon potential of Pakistan’s offshore basins.

Once these studies are completed, the companies will enter Phase-II, which will include drilling of exploratory wells in the prospective areas.

Pakistan's 300,000 square kilometre offshore zone, bordering energy-rich Oman, the United Arab Emirates and Iran, has seen just 18 wells drilled since the country's independence in 1947, too few to fully assess its hydrocarbon potential.

Pakistan, which imports about half its oil, is seeking to revive foreign interest after the failure of the 2019 Kekra-1 well led to the exit of US major Exxon Mobil.