Pakistan Resumes Offshore Energy Exploration After Two Decades

May 20, 2026

75 min

May 20, 2026 12:31

Why Pakistan is reopening offshore energy exploration

## New Offshore Blocks and Investment

Pakistan has reopened its offshore oil and gas exploration sector after nearly 20 years. The government has signed agreements for 23 offshore blocks, aiming to attract foreign investment and reduce dependency on imported energy. These blocks are located in the Indus and Makran offshore basins, near the coastal regions of Sindh and Balochistan.

## Investment and Exploration Details

The Ministry of Petroleum reported that the offshore bid round attracted bids covering approximately 54,600 square kilometers of Pakistan's offshore territory. The awarded blocks are expected to see an initial investment of $82 million over three years, focusing on geological studies and seismic surveys. If successful, total investments could reach nearly $1 billion.

## Key Players and Agreements

Mari Energies Limited emerged as a major stakeholder, participating in all 23 blocks and operating 18 of them. Other significant participants include Oil and Gas Development Company Limited, Pakistan Petroleum Limited, and Prime Global Energies Limited. The consortium of Mari Energies, Turkish Petroleum Overseas Company, and Fatima Petroleum Company Limited had already secured two blocks in December 2025.

## Government Initiatives and Future Prospects

Federal Minister for Petroleum Ali Pervaiz Malik highlighted the government's efforts to introduce investor-friendly reforms, such as the Offshore Petroleum Rules and a Model Production Sharing Agreement. These measures aim to enhance transparency and competitiveness in the sector. The government expects that, in the event of commercial discoveries, additional investments worth hundreds of millions of dollars could flow into Pakistan's energy sector.

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