Islamabad: Pakistan has reopened its offshore frontier for exploration after nearly two decades, with the signing of Production Sharing Agreements (PSAs) and Exploration Licences (ELs) for 23 offshore blocks in the Indus and Makran basins. The agreements, part of the Offshore Bid Round 2025, cover approximately 54,600 square kilometers and aim to attract both foreign and domestic investments, potentially reducing the country’s reliance on imported energy.

According to Press Information Department, Federal Minister for Petroleum Ali Pervaiz Malik attended the signing ceremony, marking a significant step in the country’s energy sector. The agreements, witnessed by the Minister, are intended to position Pakistan as a competitive offshore destination with a transparent regulatory framework. The contractual framework for the entire bid round has been completed with the signing of the remaining PSAs, following earlier agreements for two blocks with Mari Energies Limited, Turkish Petroleum Overseas Company, and Fatima Petroleum Company.

The awarded blocks are expected to bring an initial investment of approximately USD 82 million, with potential to reach USD 1 billion as exploration progresses. The first phase will focus on geological and geophysical studies, while successful findings could lead to exploratory drilling in a second phase. Additionally, the agreements include commitments to social welfare and capacity-building in coastal areas, potentially generating employment and reducing energy imports. The government plans to engage international oil companies for future exploration, maintaining a supportive environment for sustainable energy development.