In a landmark move to bolster its energy sector, Pakistan has awarded 23 offshore oil exploration blocks to four consortiums led by local energy companies, marking its first such bidding round since 2007. The awards, announced by the energy ministry on Friday, cover approximately 53,500 square kilometers of the country’s offshore zone. The successful bidders include state-run entities Oil and Gas Development Co. Ltd (OGDCL), Pakistan Petroleum Ltd (PPL), and Mari Petroleum, alongside privately-owned Prime Energy, backed by Hub Power Company (Hubco).
Among the foreign partners, Turkey’s national oil company, TPAO, secured a 25% stake in one of the blocks and operational rights through a joint agreement with PPL. Other international participants include Hong Kong-based United Energy Group, while local players Orient Petroleum and Fatima Petroleum also joined the consortiums. The four groups collectively committed to an initial investment of $80 million over three years, with potential total investments soaring to between $750 million and $1 billion if drilling progresses.
Pakistan’s offshore zone, spanning 300,000 square kilometers and bordering energy-rich nations like Oman, the UAE, and Iran, has seen minimal exploration since the country’s independence in 1947, with only 18 wells drilled to date. This initiative aims to unlock the region’s untapped hydrocarbon potential and reduce Pakistan’s reliance on oil imports, which currently account for half of its consumption. The move follows the exit of U.S. major Exxon Mobil after the unsuccessful Kekra-1 well in 2019, signaling a renewed effort to attract foreign investment in the energy sector.