Pakistan Officially Revives Oil and Gas Exploration After 20 Years

Pakistan has revived its offshore oil and gas exploration sector after nearly a twenty-year hiatus, formalizing new Production Sharing Agreements and Exploration Licences through the Offshore Bid Round 2025. These contracts encompass 23 offshore blocks situated across the Indus and Makran basins.

Government representatives highlighted the milestone as a crucial move to draw in capital and bolster the nation's enduring energy security. Policymakers anticipate that ramped-up exploration will eventually curb the country's reliance on foreign fuel imports.

Per official sources, a coalition of energy enterprises is involved in the venture, featuring Mari Energies Limited, Oil and Gas Development Company Limited (OGDCL), Pakistan Petroleum Limited (PPL), United Energy Pakistan, Prime Global Energies, and Orient Petroleum.

Capital deployment for the introductory phase is projected at roughly $82 million. Nevertheless, representatives note that total spending could surge dramatically, potentially hitting $1 billion if operations advance to the actual drilling and extraction phases.

Leadership anticipates the initiative will generate jobs, facilitate technology sharing, and elevate technical capabilities within Pakistan’s power sector. Heightened offshore operations could likewise stimulate foreign capital inflows and foster broader industrial expansion.

Sector analysts point out that fruitful discoveries could boost local energy reserves and alleviate the economic strain of escalating import bills. On the other hand, exploration endeavors typically demand sustained capital for years before yielding profitable outcomes.

The revival of offshore drilling is being regarded as a landmark shift for Pakistan’s resource sector. Decision-makers remain optimistic that the strategy will fuel economic progress, enhance self-reliance, and unlock fresh pathways for sustained resource extraction nationwide.