Pakistan awards 11 oil, gas blocks; secures Rs8.66bn investment

Pakistan has awarded 11 new onshore oil and gas blocks in a move aimed at accelerating domestic exploration and reducing reliance on imported energy, officials said on Wednesday.

The Petroleum Division of the Government of Pakistan inked Petroleum Concession Agreements (PCAs) and Exploration Licences (ELs) at a ceremony in Islamabad attended by Federal Minister for Petroleum Ali Pervaiz Malik.

The awarded blocks include eight in Balochistan, two in Sindh, and one in Punjab.

The successful joint venture partners include Oil and Gas Development Company Limited (OGDCL), Pakistan Petroleum Limited (PPL), Mari Energies Limited (MariEnergies), Pakistan Oilfields Limited (POL) and Prime Global Energies (Prime).

MariEnergies will operate six blocks, holding 100 percent working interest in five, Padag, Chagai, Dalbandin, Merui and Merui West and a 60 percent stake in the Ahmad Wal block, alongside OGDCL with 40 percent.

OGDCL will operate three blocks, including Kalat North with 100% working interest. It will also lead two joint venture blocks: Naing Sharif (OGDCL 70% as operator, Prime 30%) and Khiu-II (OGDCL 60% as operator, MariEnergies 40%).

PPL emerged as the highest bidder for the Kalat South block and will operate it with a 40% working interest, in partnership with OGDCL (30%) and MariEnergies (30%).

POL secured the Jherruk block with 100% working interest.

Officials said the minimum committed investment exceeds $31m (approximately Rs8.66bn) over the next three years. More than Rs276m has also been pledged for social welfare initiatives in the respective areas.

In the event of commercial hydrocarbon discoveries, authorities expect further investments worth millions of dollars for field development and production.

Speaking at the ceremony, the Federal Minister for Petroleum, Ali Pervaiz Malik, described the agreements as a “significant milestone” in the government’s efforts to strengthen upstream exploration, attract investment and enhance energy security.

He said the signing reflected investor confidence in Pakistan’s hydrocarbon potential and expressed hope that recent discoveries would pave the way for further development and production, job creation and regional economic growth.