Pakistan formally reopened its offshore exploration frontier after nearly two decades on Wednesday as the government signed Production Sharing Agreements (PSAs) and Exploration Licences (ELs) for offshore blocks awarded under the Offshore Bid Round 2025.

Minister for Petroleum Ali Pervaiz Malik witnessed the signing ceremony for the offshore exploration blocks, which are located in the Indus and Makran offshore basins adjoining the territorial waters of Sindh and Balochistan.

According to a statement issued by the Petroleum Division, the Offshore Bid Round 2025 attracted bids for approximately 54,600 square kilometres of Pakistan’s offshore area, resulting in the award of 23 offshore blocks.

Two offshore blocks awarded under the same bid round — Offshore Deep-C and Offshore Deep-F — had earlier been executed on Dec 2, 2025, with Mari Energies Limited, Turkish Petroleum Overseas Company (TPOC), and Fatima Petroleum Company Limited during a ceremony held at the Prime Minister’s Office. With the signing of the remaining 21 PSAs today, the contractual framework for the entire Offshore Bid Round 2025 portfolio stood fully completed.

Speaking at the ceremony, Malik said the signing marked “a defining milestone” in the government’s efforts to revitalise offshore exploration, attract foreign and domestic investment, and reduce reliance on imported energy.

Read: Govt receives bids for 23 offshore blocks

“The agreements reflect strong investor confidence in Pakistan’s offshore upstream potential,” he said, adding that the country’s offshore frontier spanned 282,623 square kilometres, where only 18 exploratory wells had been drilled since independence.

The minister said the successful completion of the offshore bid round demonstrated the government’s commitment to positioning Pakistan as a “credible and competitive offshore destination” through a transparent and investor-friendly regulatory framework.

He said the framework included the promulgation of Offshore Petroleum Rules and the introduction of a Model Production Sharing Agreement incorporated within the bid package to enhance transparency, competitiveness, and investor confidence.

Malik reaffirmed the government’s commitment to facilitating exploration activities by maintaining a “stable, transparent and investor-friendly environment” to support the sustainable development of Pakistan’s indigenous energy resources.

Mari Energies Limited emerged as the most active participant in the 23 offshore blocks, including 18 blocks as operator and five blocks as a joint venture partner with other exploration and production companies.

Oil and Gas Development Company Limited (OGDCL) and Pakistan Petroleum Limited (PPL) were each awarded eight exploration blocks, including two blocks as operators, while Prime Global Energies Limited was awarded one block as operator.

United Energy Pakistan Limited (UEP) and Orient Petroleum Incorporation (OPI), along with other joint venture partners, also participated in the signing ceremony.

Collectively, the awarded blocks represent an investment of approximately $82 million during Phase I of the initial three-year licence period. The total investment is projected to rise to around $1 billion if exploration activities progress to Phase II drilling operations.

Phase-I activities will involve geological and geophysical studies, including seismic data acquisition, processing, and interpretation, aimed at defining the hydrocarbon potential of Pakistan’s offshore basins. Subject to encouraging results, Phase II will involve the drilling of exploratory wells in prospective offshore areas.

Also Read: Govt targets offshore drilling with new partners

The statement stated that the awardees had also undertaken commitments towards social welfare and capacity-building initiatives in the coastal regions of Sindh and Balochistan.

It added that in the event of commercial hydrocarbon discoveries, substantial follow-on investments amounting to hundreds of millions of dollars were anticipated for appraisal, field development, and production activities, which were expected to generate employment opportunities, facilitate technology transfer, and help reduce Pakistan’s energy import bill.

The Petroleum Division said it intended to engage leading international oil companies in the next phase of offshore exploration, adding that several global energy firms were already evaluating available offshore data.