Major Steps in Pakistan’s Offshore Petroleum Exploration: A $1 Billion Opportunity
Exciting news is on the horizon for Pakistan as the Ministry of Energy has just wrapped up the Offshore Bid Round 2025. This event marks a remarkable initiative to reignite petroleum exploration in the country after nearly two decades. The government has opened up 40 offshore blocks, potentially inviting an impressive $1 billion worth of investments.
So, what does this really mean? Well, the bidding process saw submissions for 23 of these blocks, covering a massive area of about 53,510 square kilometers. According to the Petroleum Division, the enthusiastic response shows strong investor confidence in Pakistan’s untapped resource potential.
Launched in January, this initiative is not just about inviting bids; it’s part of a broader strategy aimed at bolstering energy security and making better use of domestic hydrocarbon resources. To make the process transparent and appealing to investors, the Ministry has introduced a Model Production Sharing Agreement (MPSA) and new Offshore Petroleum Rules. These changes are designed to offer clarity and guarantee a competitive and regulatory framework.
Recent studies, especially from US consultancy DeGolyer and MacNaughton, have indicated that there’s a wealth of unexplored hydrocarbon potential in the offshore basins of Pakistan, notably in the Indus and Makran regions. The ministry is excited for companies to delve into these geological treasures.
On October 31, the Bid Opening Committee disclosed the bids publicly, with representatives from various provinces present. Noteworthy participants include state-owned companies like OGDCL and PPL, alongside international players like Turkish Petroleum and United Energy. Together, they’ve committed to 4,427 work units during the initial three-year phase, which entails around $80 million in planned spending for geological studies and seismic data acquisition.
If the initial exploration yields promising results, the eventual investment may skyrocket to between $750 million and $1 billion, according to official estimates. Notably, TĂĽrkiye’s national oil firm, TPAO, has already taken a 25% stake and operatorship in Offshore Block-C, a sign of growing international interest in Pakistan’s offshore potential.
The Ministry has plans to bring in major global oil companies for future phases after the seismic assessments and drilling plans are in motion. This crucial step is part of a bigger vision aimed at expanding domestic energy resources and reducing dependence on expensive fuel imports.
As this exciting chapter in Pakistan’s petroleum exploration unfolds, it’s worth keeping an eye on these developments. If you want to stay updated on similar opportunities and insights, feel free to connect with us at Pro21st. Together, we can explore the future of energy in Pakistan!
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