Bid offers 40 offshore blocks for oil exploration, could attract $1 billion investment
The Ministry of Energy on Friday announced the results of the Offshore Bid Round 2025, a major initiative aimed at boosting oil exploration in Pakistan after a gap of 18 years. The round included 40 offshore blocks, with potential investment estimated at $1 billion via exploration drilling.
The Offshore Bid Round 2025 proposed 40 offshore blocks for oil exploration. Bids were submitted for 23 blocks, covering an area of ​​approximately 53,510 square kilometers. According to the Petroleum Division, this response reflects “strong investor confidence” in Pakistan’s resource potential.
The tender process, launched in January, aims to support the government’s broader objective of strengthening energy security and developing national hydrocarbon resources.
To provide clarity and attract investors, the ministry developed a model production sharing agreement (MPSA) and promulgated new rules on offshore oil ahead of the bidding round. Officials said the measures aim to ensure transparency, competitiveness and regulatory certainty for participating companies.
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A recent basin study by US consultancy DeGolyer and MacNaughton (D&M) has suggested substantial unexplored hydrocarbon potential in Pakistan’s offshore basins, particularly in the Indus and Makran regions. Building on these findings, the government has invited companies to explore a range of geological prospects in the region.
The bids were opened publicly on October 31 by the bid opening committee, chaired by the Director General of Oil Concessions, in the presence also of representatives from Sindh and Balochistan.
Among the bidders are state-owned companies OGDCL, PPL, MariEnergies and Prime Energy. They will be joined by international and private sector partners including Turkish Petroleum, United Energy, Orient Petroleum and Fatima Petroleum.
A total of 4,427 work units have been committed for Phase I of the initial three-year license period, representing planned expenditures of approximately $80 million. During this phase, the companies will carry out in-depth geological and geophysical studies, including the acquisition and interpretation of seismic data.
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If initial results are promising and exploration drilling progresses, the total investment over the course of the program could amount to between $750 million and $1 billion, according to the ministry.
Notably, Turkey’s national oil company, TPAO, recently took a 25% stake and operator position in Offshore Block-C, signaling what officials described as “growing international interest” in Pakistan’s offshore potential.
The ministry said plans were in place to invite major global oil companies to participate in subsequent phases, once the seismic work and drilling plans for Phase I are completed.
The statement concluded that the offshore tender marks an important step towards achieving the government’s objective of increasing domestic energy resources and reducing dependence on costly fuel imports.
