The federal government signs major agreements to start searching for oil and gas in the deep sea along the Sindh and Balochistan coasts after an almost two-decade pause. It isaimed at cutting down on expensive fuel imports.
The government of Pakistan has officially reopened its maritime energy frontier after a gap of nearly 20 years by signing Production Sharing Agreements (PSAs) and exploration licenses for 23 offshore blocks. According to the Ministry of Petroleum, the signing ceremony completed the contractual framework for the Offshore Bid Round 2025.
Petroleum Minister Ali Pervaiz Malik stated that companies will spend $82 million in the first three years just for initial geological and seismic studies. Officials expect total investment to reach $1 billion if the companies start deep-water drilling.
Which Companies Are Working and Where?
The newly awarded offshore exploration covers 23 blocks and approximately 54,600 square kilometers across the Indus and Makran basins along the coasts of Sindh and Balochistan.
According to official corporate reports, state-owned and private energy companies are joining hands to work in these areas:
· Pakistan Petroleum Limited (PPL) will work in eight blocks in total. It will directly lead the work as the operator in Gharo Creek and Kochi Creek. It will also work as a partner in six other blocks, including Bin Qasim South, Keti Bandar, Behr, Zarrar, Offshore Deep D, and Sapat Bandar.
· Oil and Gas Development Company Limited (OGDCL) will also work in eight blocks. It will lead the operations in two blocks and join as a partner in the other six blocks.
· Mari Energies Limited will be the largest participant, leading the operations in 18 blocks and partnering in five others.
· Prime Global Energies Limited will lead operations in one block as the direct operator.
Economic Strategic Vision
According to the Ministry of Petroleum, the framework includes updated offshore petroleum rules and a standard model production sharing agreement to ensure regulatory transparency.
Ministry officials stated that this big move aims to find local energy resources. Successful commercial discoveries will attract hundreds of millions of dollars in follow on investments for field appraisal and development. It will also help Pakistan reduce its reliance on costly imported oil and LNG.
Additionally, the participating exploration companies have committed to executing social welfare and community development projects within the coastal regions of Sindh and Balochistan.
