ISLAMABAD (Kashmir English): Pakistan on Friday announced that it has awarded 23 offshore oil exploration blocks to four consortia led by local energy companies, some partnered with foreign firms, including Turkish national oil company TPAO.
In the country’s first such bidding round in nearly 18 years, the Ministry of Energy said that bids were awarded for 23 of 40 offshore blocks offered, covering around 53,500 square kilometres.
According to the state-owned news agency, the energy ministry listed state-run Oil and Gas Development Co. Ltd (OGDCL), Pakistan Petroleum Ltd (PPL) and MariEnergies, along with privately-owned Prime Energy, which is backed by Pakistan’s Hub Power Company (Hubco), among the successful bidders.
TPAO secured a 25% stake in one of the awarded blocks and the right to operate it after it signed a joint bidding agreement with the Pakistan Petroleum Ltd earlier this year to explore the offshore prospects.
Other partners include Hong Kong-based United Energy Group, Orient Petroleum, a major local independent producer, and Fatima Petroleum, part of Pakistan’s Fatima Group conglomerate.
The energy ministry said the four winning consortiums, led by OGDCL, PPL, Mari Petroleum and Prime Energy, collectively pledged about $80 million in exploration work over the initial three-year period.
Total investment could rise to between $750 million and $1 billion if drilling proceeds, according to the ministry.
A recent basin assessment study by DeGolyer and MacNaughton, a US petroleum consulting firm, indicated the presence of a significant yet-to-be-found potential of hydrocarbons in Pakistan’s offshore basins.
Pakistan later announced the launch of the Offshore Bid Round 2025, aimed at offering blocks to companies for exploration efforts across the Makran and Indus basins.
Pakistan oil imports
The country’s 300,000 square kilometre offshore zone, bordering energy-rich Oman, Iran and the United Arab Emirates, has seen just 18 wells drilled since the country came into inception in 1947, too few to fully assess its hydrocarbon potential. At present, Pakistan imports about half its oil.
It is to mention here that the country is seeking to revive foreign interest after the failure of the 2019 Kekra-1 well led to the exit of US major Exxon Mobil.
