Govt awards 11 oil, gas exploration blocks

The Petroleum Division on Thursday signed petroleum concession agreements and granted exploration licences for 11 onshore blocks, marking a significant step forward in advancing oil and gas exploration activities across the country.

The signing ceremony was held in Islamabad, where Federal Minister for Petroleum Ali Pervaiz Malik was also present. The awarded blocks include eight in Balochistan, two in Sindh and one in Punjab.

The successful joint venture partners are Oil and Gas Development Company (OGDC), Pakistan Petroleum Limited (PPL), Mari Energies, Pakistan Oilfields Ltd (POL) and Prime Global Energies. Speaking on the occasion, the minister for petroleum termed the signing of agreements a significant milestone in the government's efforts to boost domestic exploration, attract investment and reduce reliance on imported energy.

"The agreements demonstrate strong investor confidence in Pakistan's upstream potential," the minister remarked and expressed confidence that recent discoveries would lead to further investments in development and production, create employment opportunities, stimulate economic activity in those regions and contribute meaningfully to reducing reliance on imported energy.

He reaffirmed the government's commitment to facilitating exploration activities and ensuring a stable investor-friendly environment for sustainable development of indigenous energy resources. Mari Energies will serve as the operator of six blocks. It has secured 100% working interest in five blocks – Padag, Chagai, Dalbandin, Merui and Merui West – and will lead the Ahmad Wal block as the operator with a 60% working interest, alongside OGDC having 40% interest.

PPL emerged as the highest bidder for the Kalat South block and will operate it with a 40% working interest in partnership with OGDC (30%) and Mari Energies (30%). POL secured the Jherruk block with 100% working interest. OGDC, Pakistan's largest exploration and production company, signed agreements for five new exploration blocks awarded in the bidding round held on April 30, 2025. It will serve as the operator in three blocks and participate as a non-operating joint venture partner in two blocks.

OGDC will operate the Kalat North block with a 75% working interest, in partnership with Prime (25%). The block covers parts of Nushki, Mastung, Kharan and Kalat districts of Balochistan. OGDC will also operate the Khui-II block, covering Bhakkar and Khushab districts of Punjab, with a 60% working interest. Mari Energies holds the remaining 40% stake. In the Naing Sharif block in Jamshoro district of Sindh, OGDC will hold an 80% working interest as the operator, alongside Prime (20%).

Meanwhile, OGDC secured interests in two additional blocks as a non-operator. In the Ahmed Wal block in the Nushki district of Balochistan, the company holds a 40% working interest, while Mari Energies will serve as the operator with a 60% share.

In the Kalat South block, also in Balochistan, OGDC has acquired a 30% stake, with PPL acting as the operator with a 40% interest and Mari Energies holding the remaining 30%. The block covers Kalat, Khuzdar and Jhal Magsi districts.

The minimum committed investment by the successful bidders exceeds $31 million (Rs8.66 billion) over the next three years. In addition, more than Rs276 million has been committed to social welfare initiatives in the respective areas.