ISLAMABAD: Pakistan has reactivated its offshore exploration programme with the provisional award of 23 new offshore blocks to public-sector oil and gas companies, led by Mari Energies, under three-year commitments worth approximately $80 million.
Mari Energies — a joint venture of Fauji Foundation and the federal government — emerged as the dominant player, securing stakes in all 23 blocks offered in the latest bidding round. The company obtained operatorship in 18 blocks and partnership roles in five, holding 100pc ownership and operatorship in 10 of them, and majority stakes in eight others.
Pakistan Petroleum Ltd (PPL) won operatorship of six blocks and partnership in two, while Oil and Gas Development Company Ltd (OGDCL) secured two blocks as operator and six as joint venture partner. Private-sector firm Prime Global Energies obtained operatorship of one block with a 31pc stake, with Mari, PPL, and OGDCL each holding 23pc shares.
These awards remain subject to production sharing agreements, exploration licences, joint operating agreements, and other legal formalities.
The government had invited bids for 40 offshore blocks and received 23 bids by Oct 31, ultimately awarding 23 blocks covering roughly 53,510 square kilometres. In contrast, only one bid — from Mari Energies — was received for 23 onshore blocks offered earlier.
The Petroleum Division said interest from global and domestic partners, including Turkish Petroleum, United Energy, Orient Petroleum, and Fatima Petroleum, reflects renewed confidence in Pakistan’s offshore potential. Past exploration attempts by majors like Shell and ExxonMobil yielded no commercial success, including the high-profile Kekra-1 well drilled five years ago.
To ensure transparency and investor confidence, the Petroleum Division introduced a model production sharing agreement and updated Offshore Petroleum Rules ahead of the bid round. A recent basin study by US firm DeGolyer and MacNaughton highlighted significant untapped hydrocarbon prospects in Pakistani waters, underpinning the launch of the Offshore Bid Round 2025 after an 18-year hiatus.
For the initial three-year phase, companies have committed to 4,427 work units valued at around $80m, with potential drilling-phase investments reaching $750m to $1bn. Early work will focus on detailed geological and geophysical surveys, seismic data acquisition, and interpretation to identify promising prospects. Phase-II will include exploratory drilling in selected areas.
The ministry said its strategy to simultaneously explore the Indus and Makran basins has already paid dividends, as reflected in the strong participation. After completing early studies and drilling plans, Pakistan intends to invite major international oil companies — several of which are already in discussions — to join the next stage of offshore exploration.
Story by Khaleeq Kiani
