KARACHI: Pakistan Petroleum Limited (PPL) has signed Production Sharing Agreements (PSAs) and exploration licences for eight offshore blocks awarded under the Offshore Bid Round 2025, marking a key milestone in reviving offshore hydrocarbon exploration in Pakistan after nearly two decades.
In a notice submitted to the Pakistan Stock Exchange (PSX), the company confirmed that the agreements were executed on May 20, 2026, in the presence of the Federal Minister for Petroleum, following the earlier provisional award announced on November 13, 2025.
The offshore portfolio includes two PPL-operated blocks — Gharo Creek and Kochi Creek — while the company will also participate as a partner in six additional blocks: Bin Qasim South, Keti Bandar, Behr, Zarrar, Offshore Deep D, and Sapat Bandar.
The blocks are located across the Indus and Makran offshore basins, extending into the maritime areas adjacent to Sindh and Balochistan, which are considered highly prospective for oil and gas exploration.
PPL stated that the execution of these agreements formally launches the next phase of exploration activities under the Offshore Bid Round 2025, representing a significant step toward unlocking Pakistan’s offshore energy potential.
The company said the development could help reduce dependence on imported energy by strengthening indigenous resource development and reviving exploration in offshore basins that have remained largely inactive for around two decades.
In its PSX filing, PPL termed the move a major opportunity to tap Pakistan’s offshore hydrocarbon potential and accelerate upstream exploration activity in frontier areas.
Industry observers note that offshore exploration is capital-intensive and technically complex, but holds long-term promise given geological similarities between Pakistan’s offshore basins and other hydrocarbon-rich regions globally.
Pakistan’s offshore sector has seen limited activity in recent years, with no major discoveries despite earlier drilling efforts. However, authorities have introduced new bidding rounds and regulatory incentives to attract investment and revive interest in exploration.
PPL, a leading exploration and production company, is expected to collaborate with local and international partners to conduct seismic studies and exploration programmes under the newly awarded acreage.
