Pakistan Signs 11 New Oil and Gas Exploration Deals to Boost Domestic Energy Production
By Shahzad Paracha :
Pakistan has taken a major step toward strengthening its domestic energy sector by awarding 11 new onshore oil and gas exploration blocks to local companies, securing more than $31 million in committed investment over the next three years.
The Petroleum Division signed Petroleum Concession Agreements and Exploration Licences at a formal ceremony in Islamabad, attended by Federal Minister for Petroleum Ali Pervaiz Malik, marking what officials describe as a significant advancement in the country’s energy security strategy.
Exploration Blocks Across Three Provinces
The newly awarded exploration rights span multiple regions, with eight blocks located in Balochistan, two in Sindh, and one in Punjab. This geographic distribution reflects a deliberate strategy to explore hydrocarbon potential across diverse geological formations in the country.
The minimum committed investment from successful bidders exceeds $31 million, approximately Rs8.66 billion, over the next three-year period. Additionally, companies have pledged more than Rs276 million for social welfare initiatives in communities near the concession areas, supporting local development alongside resource exploration activities.
Industry Players and Partnerships
The successful joint venture partners include Oil and Gas Development Company Limited, Pakistan Petroleum Limited, Mari Energies Limited, Pakistan Oilfields Limited, and Prime Global Energies.
MariEnergies emerged as the largest operator, securing six blocks. The company will hold full working interest in five blocks: Padag, Chagai, Dalbandin, Merui, and Merui West. It will also lead the Ahmad Wal block as operator with a 60 percent stake, partnering with OGDCL which holds the remaining 40 percent.
OGDCL will operate three blocks, including Kalat North with complete working interest. The company will also lead two joint venture blocks: Naing Sharif with a 70 percent stake alongside Prime holding 30 percent, and Khiu-II with a 60 percent stake alongside MariEnergies holding 40 percent.
PPL emerged as the highest bidder for the Kalat South block and will operate it with a 40 percent working interest, in partnership with OGDCL at 30 percent and MariEnergies at 30 percent.
POL secured the Jherruk block with full working interest.
Future Development Potential
Officials indicated that if commercial hydrocarbon discoveries are made, substantial additional investments worth millions of dollars would follow for field development and production activities. Such discoveries could generate employment opportunities, stimulate regional economic growth, and contribute significantly to reducing Pakistan’s dependence on imported energy.
Government Commitment
Addressing the ceremony, Federal Minister for Petroleum Ali Pervaiz Malik described the agreements as a major milestone in government efforts to strengthen upstream exploration, attract investment, and enhance national energy security.
He stated that the signing reflects growing investor confidence in Pakistan’s hydrocarbon potential and expressed optimism that recent discoveries would pave the way for further development, production expansion, job creation, and regional economic advancement.
The minister reaffirmed the government’s commitment to facilitating exploration activities and maintaining a stable, investor-friendly environment to promote sustainable development of Pakistan’s indigenous energy resources.
About Author
