Pakistan revives offshore oil drilling with 23 new exploration blocks

Pakistan has achieved a major milestone in offshore oil and gas exploration after two decades and awarded 23 exploration blocks to four locally led consortiums, several in partnership with foreign firms, including Turkiye’s TPAO.

The development reflects a renewed sense of investor confidence in Pakistan’s energy sector and the government’s push to revitalize offshore drilling.

According to the Ministry of Energy, the successful bids cover about 53,500 square kilometers out of the 40 blocks offered in the first offshore bidding round in nearly 20 years.

The Petroleum Division estimates an initial investment of around $80 million in the exploration phase, with potential spending reaching $1 billion once drilling begins. Officials have described the move as a major step toward unlocking Pakistan’s underexplored offshore resources.

The awarded projects were secured by OGDCL, Pakistan Petroleum Limited (PPL), Mari Energies, and Prime Energy, which is supported by the Hub Power Company (Hubco). Turkey’s TPAO obtained a 25% share in one block and will operate it in collaboration with PPL.

Other international participants include United Energy Group (Hong Kong), Orient Petroleum, and Fatima Petroleum.

The exploration will take place in the Indus and Makran basins, areas considered promising for hydrocarbon discoveries.

Officials stated that the outcome demonstrates growing trust in Pakistan’s energy policies and a stronger commitment to ensuring stability in exploration.

Despite having a 300,000-square-kilometer offshore zone, Pakistan has drilled only 18 wells since independence. The new round marks a fresh chapter after the Kekra-1 project’s unsuccessful attempt in 2019 and is expected to drive progress toward energy self sufficiency.