Pakistan receives 23 Bids in first offshore exploration round in 20 Years
Exploration work was going on at a slow pace because of the lethargic licensing and taxation processes. PHOTO: FILE
The strong response reflects growing investor confidence in Pakistan's upstream petroleum sector. Bids were received for 23 offshore blocks covering a total area of 53,510 square kilometers.
Among the successful bidders are Pakistan's leading national companies – Oil and Gas Development Company Limited (OGDCL), Pakistan Petroleum Limited (PPL), MariEnergies and Prime Energy. In addition, major international and private-sector partners, including Turkish Petroleum, United Energy, Orient Petroleum and Fatima Petroleum, have joined as joint venture partners, underscoring renewed global interest in Pakistan's offshore potential.
A total of 4,427 work units have been committed during phase-I of the initial three-year licence period, representing an investment of approximately $80 million. The companies have submitted detailed work programmes aimed at progressively mitigating geological risks. In the event of exploration drilling, total investments could reach between $750 million and $1 billion.
Aligned with the prime minister's vision to strengthen energy security, enhance indigenisation and promote local resource development, the Ministry of Energy (Petroleum Division) announced the results of the Offshore Bid Round 2025, which was launched in January this year after an 18-year hiatus. The round offered petroleum exploration licences for 40 offshore blocks.
Prior to initiating the process, the ministry developed a Model Production Sharing Agreement (MPSA) – a key document included in the bid package – to ensure transparency, competitiveness and investor confidence. In parallel, the Offshore Petroleum Rules were promulgated to provide a robust regulatory framework, paving the way for renewed offshore exploration within Pakistan's territorial waters.
A recent basin study conducted by US-based firm DeGolyer and MacNaughton (D&M) indicated significant untapped hydrocarbon potential in Pakistan's offshore basins. Building on this encouraging assessment, the government launched the Offshore Bid Round 2025 to allow exploration companies to systematically test various geological plays across both the Indus and Makran basins.
On Friday, the bids were opened publicly in a transparent manner by the bid opening committee, chaired by the director general petroleum concessions (DGPC), in the presence of representatives from the provincial governments of Sindh and Balochistan — the two coastal provinces hosting the offshore areas.
During phase-I, the companies will undertake comprehensive geological and geophysical (G&G) studies, including seismic data acquisition, processing and interpretation, to better define the hydrocarbon potential of Pakistan's offshore basins. Upon completion of these studies, phase-II will involve the drilling of exploratory wells in the most promising areas.
Pakistan's strategy to initiate exploration in both the Indus and Makran basins simultaneously has proven successful, as reflected in the strong participation and outcome of the bid round. After the completion of G&G studies and drilling plans, the ministry will invite leading global oil majors to participate in the next phase of offshore exploration. Several international players are already in contact with the government and local companies, evaluating available data for potential collaboration.
Notably, as a major recent development, TPAO, the national oil company of Turkiye, has acquired a 25% stake along with operatorship in offshore Block-C.
Prime Minister Shehbaz Sharif commended the proactive participation of oil and gas companies and extended a warm welcome to the foreign firms and new entrants joining hands to explore Pakistan's promising offshore frontier. He congratulated all successful bidders and assured them of the government's full support to fast-track exploration activities.