Pakistan eyes $1 billion offshore investment in oil and gas sector

Pakistan has restarted offshore oil and gas exploration activities after nearly two decades, with the government signing a series of production-sharing agreements and exploration licenses under the Offshore Bid Round 2025, officials said on Wednesday.

Federal Petroleum Minister Ali Pervaiz Malik attended the signing ceremony for the offshore exploration agreements, according to an official statement issued by the Petroleum Division.

The government said the initial three-year license period under Phase One would involve an investment of USD 82 million, focused on seismic data acquisition, processing, and geological and geophysical studies.

Officials said total investment could rise to nearly USD 1 billion in Phase Two if exploration activities advance to offshore drilling operations.

The offshore blocks have been allocated in the Indus and Makran offshore basins adjacent to the coastal areas of Sindh and Balochistan provinces. Under Offshore Bid Round 2025, the government approved 23 blocks covering an area of 54,600 square kilometers.

According to the statement, agreements for two blocks — Offshore Deep-C and Offshore Deep-F — had already been finalized at the Prime Minister’s House on Dec. 2, 2025. With the signing of 21 additional production-sharing agreements on Wednesday, the contractual framework for Offshore Bid Round 2025 has now been completed.

Malik described the signing of the offshore exploration agreements as a “historic milestone” in Pakistan’s energy policy.

“The revival of offshore exploration reflects the government’s commitment to attracting investment and reducing dependence on imported fuels,” Malik said, according to the statement.

He added that the agreements demonstrated investor confidence in Pakistan’s offshore hydrocarbon potential and said the successful completion of the offshore bid round reflected transparent and investor-friendly policies.

The minister also said the implementation of Offshore Petroleum Rules and the introduction of a model production-sharing agreement would strengthen transparency and improve investor confidence.

According to the statement, Mari Energies secured 18 of the 23 blocks as operator and five additional blocks as a joint venture partner.

Oil and Gas Development Company Limited and Pakistan Petroleum Limited were allocated eight exploration blocks, including two as operators.

Prime Global Energies received one block as operator, while United Energy Pakistan Limited and Orient Petroleum Inc. participated as joint venture partners.

The statement said that if Phase One studies produce positive results, exploration wells would be drilled offshore during Phase Two.

The government also said participating companies had expressed commitments toward social welfare and capacity-building projects in the coastal regions of Sindh and Balochistan.

Malik said the government would continue to provide a stable, transparent and investor-friendly environment to support the sustainable development of Pakistan’s domestic energy resources.