Pakistan launches offshore oil and gas drilling after nearly two decades

Pakistan has formally reopened its offshore oil and gas exploration sector after nearly 20 years, a significant step toward boosting domestic energy resources and attracting investment.

The government has signed Production Sharing Agreements (PSAs) and Exploration Licences (ELs) for the 23 offshore blocks awarded under the Offshore Bid Round 2025. Federal Petroleum Minister Ali Pervaiz Malik was present at the signing event.

The officials said the bid round encompassed over 54,600 square kilometres in the Indus and Makran offshore basins along the coastal waters of Sindh and Balochistan.

The Ministry of Petroleum said two blocks were awarded earlier in December 2025, while the remaining 21 agreements have now been concluded, completing the full offshore licensing structure.

Officials said the achievement was an important milestone to spur offshore exploration, increase international and local investment and reduce dependence on imported energy.

The government said the potential of Pakistan’s offshore area is around 282,623 square kilometers and only a few exploration wells had been completed since independence.

Companies will first conduct geological and geophysical research, including seismic data collecting and interpretation in Phase-I under the new framework. If the results are positive, exploratory drilling will follow in Phase-II.

Mari Energies was the biggest stakeholder among participating corporations, however significant national energy companies also won several blocks.

The government forecasts the initial investment at about $82 million, rising to almost $1 billion if drilling moves to the advanced exploration stages.