Pakistan reopens offshore exploration: Pakistan has taken a significant step in reviving its offshore energy exploration by signing Production Sharing Agreements (PSAs) and Exploration Licences (ELs) for 23 offshore blocks. These blocks were awarded under the Offshore Bid Round 2025, marking nearly two decades since the last exploration efforts.
The signing ceremony, held on May 20, 2026, was attended by Federal Minister for Petroleum Ali Pervaiz Malik. The blocks are located in the Indus and Makran offshore basins, which are adjacent to the territorial waters of Sindh and Balochistan. This initiative attracted bids covering approximately 54,600 square kilometers of offshore territory.
The Ministry of Petroleum highlighted that two blocks, Offshore Deep-C and Offshore Deep-F, had already been executed in December 2025 with Mari Energies Limited and other international companies. The completion of agreements for the remaining 21 blocks signifies a comprehensive contractual framework for the entire bid round.
Minister Malik emphasized the importance of this development in attracting both foreign and domestic investment, reducing reliance on imported energy, and showcasing Pakistan’s offshore potential. He noted that only 18 exploratory wells have been drilled since independence, covering a potential area of around 282,623 square kilometers.
The awarded blocks represent an estimated initial investment of $82 million over the first three years, with potential to rise to nearly $1 billion if exploration advances. Initial activities will include geological studies and seismic data acquisition, with drilling operations planned if results are promising.
The participating companies, including Mari Energies and Oil and Gas Development Company Limited, have also committed to social welfare initiatives in coastal areas. This development reflects the government’s commitment to establishing Pakistan as a competitive offshore exploration destination.
Published in SouthAsianDesk, May 20, 2026
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