Govt reopens offshore oil frontier

ISLAMABAD: For the first time in nearly 20 years, the government on Wednesday awarded two dozen offshore blocks for exploration, attracting an initial investment of $82 million during the first phase of a three-year licensing period. According to an official statement from the petroleum ministry, the total investment is projected to reach $1 billion if exploration activities progress to the second phase. Petroleum Minister Ali Pervaiz Malik witnessed the signing of production sharing agreements (PSAs) and exploration licences (ELs) for blocks awarded in the Offshore Bid Round 2025, marking the formal reopening of the country’s maritime frontier after nearly two decades. The awarded blocks are located in the Indus and Makran offshore basins, adjoining the territorial waters of Sindh and Balochistan. The round attracted bids covering approximately 54,600 square kilometres of the country’s offshore area, resulting in the award of 23 blocks, according to an official press release. 23 blocks awarded after 20-year gap, attracting $82m initial investment in Indus and Makran basins Two offshore blocks awarded under the same bid round, Offshore Deep-C and Offshore Deep-F, had earlier been executed on Dec 2, with Mari Energies, Turkish Petroleum Overseas Company (TPOC), and Fatima Petroleum Company during a ceremony at the Prime Minister’s Office. With the signing of the remaining 21 PSAs, the contractual framework for the entire offshore bid round portfolio is now complete. Speaking at the ceremony, Mr Pervaiz termed the signing a “defining milestone” in the government’s efforts to revitalise offshore exploration, attract both foreign and domestic investment, and reduce reliance on imported energy. He added that the agreements reflect strong investor confidence in the country’s offshore upstream potential, a frontier spanning 282,623 square kilometres, where only 18 exploratory wells have been drilled since independence. He further said the successful completion of the offsh