Bid offers 40 offshore blocks for oil exploration, could attract $1 billion in investment
The Ministry of Energy on Friday announced the results of the Offshore Bidding Round 2025, a major initiative to boost oil exploration in Pakistan after an 18-year hiatus. The round featured 40 offshore blocks, with potential investments estimated at up to USD 1 billion. through exploratory drilling.
The 2025 offshore bidding round offered 40 offshore blocks for oil exploration. Bids were submitted for 23 blocks covering an area of ​​approximately 53,510 square kilometers. According to the Petroleum Division, this response reflects “strong investor confidence” in Pakistan’s resource potential.
The tender process, launched in January, aims to support the government’s broader goals of increasing energy security and developing domestic hydrocarbon resources.
To create clarity and attract investors, the ministry developed a Model Production Sharing Agreement (MPSA) and issued new offshore petroleum rules ahead of the bidding round. Officials said these measures were designed to ensure transparency, competitiveness and regulatory certainty for participating companies.
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A recent study of the basin by US consulting firm DeGolyer and MacNaughton (D&M) had suggested significant unexplored hydrocarbon potential in Pakistan’s offshore basins, particularly across the Indus and Makran regions. Based on these results, the government invited companies to explore a number of geological prospects in the area.
The bids were opened publicly on October 31 by the Bid Opening Committee, headed by the Director General of Petroleum Concessions, with representatives of Sindh and Balochistan also present.
Among the bidders are state-owned companies OGDCL, PPL, MariEnergies and Prime Energy. They will be joined by international and private partners including Turkish Petroleum, United Energy, Orient Petroleum and Fatima Petroleum.
A total of 4,427 work units have been committed for Phase-I of the initial three-year license period, representing planned expenditures of approximately $80 million. In this phase, companies will perform extensive geological and geophysical investigations, including seismic data collection and interpretation.
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If initial results are promising and exploratory drilling pays off, total investments under the program could rise to between $750 million and $1 billion, according to the ministry.
In a notable development, Turkey’s national oil company, TPAO, recently took a 25% stake and operatorship in Offshore Block-C, signaling what officials described as “growing international interest” in Pakistan’s offshore potential.
The ministry said there are plans to invite major global oil companies to participate in subsequent phases once seismic work and drilling plans from Phase-I are completed.
The statement concluded that the offshore bidding round marks a significant step towards realizing the government’s goal of expanding domestic energy resources and reducing dependence on expensive fuel imports.
