Pakistan unveils results of Offshore Bid Round 2025 after 18 years

ISLAMABAD: The Ministry of Energy, Pakistan, has announced results of the Offshore Bid Round 2025, the first in 18 years, marking a major step toward energy security and offshore exploration. Bids were received for 23 blocks, with OGDCL, PPL, MariEnergies, and Turkish Petroleum (TPAO) among the key participants, says an official press release 

Keeping in view the Prime Minister’s vision of indoctrinating energy security, enhancing indigenization and promoting local resource development, the Ministry of Energy, Government of Pakistan announces the results of the competitive Offshore Bid Round 2025, launched in January this year after a gap of 18 years for the grant of petroleum exploration licenses in forty (40) offshore blocks.

Before initiating the process, the Ministry developed a Model Production Sharing Agreement (MPSA), a key document integrated into the bid package, to ensure transparency, competitiveness, and investor confidence. In parallel, the Offshore Petroleum Rules were promulgated to provide a comprehensive regulatory framework, paving the way for renewed offshore exploration in Pakistan’s waters.

A recent basin study conducted by the U.S. firm DeGolyer and MacNaughton (D&M) has indicated a significant yet-to-find potential of hydrocarbons in Pakistan’s offshore basins. Building on this encouraging assessment, the Offshore Bid Round 2025 was launched with a view to offer blocks that allow companies to undertake systematic exploration efforts to test various geological plays across both the Indus and Makran basins.

Today, 31st October 2025, the bids were publicly opened transparently by the Bid Opening Committee, chaired by the Director General Petroleum Concessions (DGPC), in the presence of representatives from the provincial governments of Sindh and Balochistan, the two coastal provinces hosting the offshore areas.

The response to the bid round has been encouraging, reflecting strong investor confidence in Pakistan’s upstream sector. Bids were received for twenty-three (23) offshore blocks, covering a total area of approximately 53,510 square kilometers.

Among the successful bidders are Pakistan’s leading national companies, OGDCL, PPL, MariEnergies and Prime Energy. In addition, other important international and private-sector partners, like Turkish Petroleum, United Energy, Orient Petroleum, and Fatima Petroleum, have joined as joint venture partners, underscoring growing international interest in Pakistan’s offshore potential.

A total of 4,427 work units have been committed during Phase-I of the initial three-year license period, representing an investment of approximately 80 million USD. The companies have submitted work programs designed to progressively mitigate the geological risks, and in the event of exploration drilling, investments could reach up to USD 750 million to USD 1 billion.

During Phase-I, the companies will undertake comprehensive geophysical and geological (G&G) studies, including seismic data acquisition, processing, and interpretation, to better define the hydrocarbon potential of Pakistan’s offshore basins. Upon completion of these studies, the Phase-II work program will be finalized which will include drilling of exploratory wells in the prospective areas.

The Pakistan’s strategy to initiate exploration in both the Indus and Makran basins simultaneously has proven to be successful, as reflected in the participation and outcome of the bid round. After the completion of G&G work and drilling planning, the Ministry will invite global oil majors to join the next phase of offshore exploration, several of whom are already in contact with the Government and local companies and are currently evaluating the available data.

It is also noteworthy that recently as a major intervention, TPAO, national Company of Türkiye, has taken over 25% stake in offshore block-C alongwith operatorship. The honourable Prime Minister, Muhammad Shehbaz Sharif commended the proactive participation of oil and gas companies and warmly welcomes the foreign companies and new entrants who have joined hands to explore Pakistan’s promising offshore frontier. He congratulated all successful bidders and assured them of Government’s full support to fast-track exploration activities.