Pakistan has awarded 23 offshore oil and gas exploration blocks to four consortiums led by local energy giants marking its first offshore licensing round in almost twenty years and signaling renewed investor confidence in the country’s energy sector.
KARACHI, October 31, 2025 — In a landmark move aimed at reviving offshore exploration and reducing energy dependence, Pakistan has awarded 23 offshore oil and gas exploration blocks to four consortiums led by local energy companies — the country’s first such bidding round in nearly two decades, the Ministry of Energy announced on Friday.
According to the ministry’s statement, the awarded blocks cover approximately 53,500 square kilometers of Pakistan’s territorial waters in the Arabian Sea, offering new opportunities for both local and foreign investors to explore untapped hydrocarbon potential.
The successful bidders include the Oil and Gas Development Company Limited (OGDCL), Pakistan Petroleum Limited (PPL), MariEnergies, and Prime Energy, the latter backed by Hub Power Company (Hubco). Several consortiums have partnered with international oil firms, most notably Turkey’s national oil company, TPAO, which has joined as a key participant in the exploration effort.
Energy Sector Milestone
This marks the first offshore licensing round Pakistan has held since the mid-2000s, a period during which onshore exploration dominated the sector due to cost concerns, political instability, and limited technological access for deep-sea operations.
Officials at the Ministry of Energy described the development as a “strategic breakthrough” that will diversify Pakistan’s exploration portfolio, enhance domestic production capacity, and reduce reliance on imported oil and liquefied natural gas (LNG).
“This new offshore licensing round demonstrates Pakistan’s commitment to energy security and market reform. We are confident that this collaboration between local and international partners will accelerate hydrocarbon discovery and create long-term economic value,” an Energy Ministry spokesperson said.
Foreign Partnerships and Technological Transfer
The involvement of Turkey’s TPAO is being viewed as an encouraging sign of regional cooperation and confidence in Pakistan’s regulatory framework. TPAO’s experience in offshore drilling across the Mediterranean and Black Sea could provide vital technical expertise for exploring Pakistan’s deeper maritime zones.
Energy analysts suggest that successful drilling in these newly awarded blocks could reshape Pakistan’s energy outlook over the next decade, with potential implications for industrial competitiveness and trade balance.
Background: Reviving Offshore Exploration
Pakistan’s previous offshore efforts were limited by challenging geological conditions and financial constraints. The country’s last major offshore exploration attempt — the Kekra-1 well near Karachi in 2019 — was abandoned after failing to find commercially viable reserves.
Since then, growing energy import bills and global price volatility have prompted Islamabad to revisit offshore opportunities under updated fiscal terms, aimed at making exploration more attractive to investors through tax incentives, flexible royalty structures, and security guarantees.
Economic Impact and Energy Security
Experts estimate that if even a fraction of the awarded blocks yield recoverable hydrocarbons, it could significantly reduce Pakistan’s $18–20 billion annual energy import bill, while strengthening foreign exchange reserves and industrial growth.
“This is a long-term play,” said an energy analyst in Karachi. “Even preliminary exploration success will boost investor confidence, improve the current account outlook, and reinforce Pakistan’s strategic importance as a regional energy corridor.”
The exploration programs are expected to begin in early 2026, with seismic surveys and initial drilling slated for completion within two years.
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