In a strategic move to enhance domestic energy production and reduce Pakistan’s dependence on imported fuels, the government has awarded 11 new onshore oil and gas exploration blocks. This initiative aims to accelerate exploration activities within the country’s borders, potentially unlocking significant hydrocarbon reserves. The Petroleum Division of Pakistan formalized the agreements during a high-profile ceremony held in Islamabad, which was attended by Federal Minister for Petroleum, Ali Pervaiz Malik.
The newly awarded blocks are spread across three provinces, with the majority located in Balochistan, where eight blocks were allocated. Sindh received two blocks, while Punjab was granted one. This distribution reflects the government’s focus on tapping into the diverse geological formations across the country, each with promising potential for oil and gas discoveries. The involvement of multiple provinces also underscores the nationwide approach to energy exploration and development.
Several prominent industry players have secured stakes in these blocks, including major state-owned and private companies. The Oil and Gas Development Company Limited (OGDCL), Pakistan Petroleum Limited (PPL), Mari Energies Limited (MariEnergies), Pakistan Oilfields Limited (POL), and Prime Global Energies (Prime) emerged as the successful joint venture partners. Notably, MariEnergies will operate six of the blocks, holding full working interest in five of them—Padag, Chagai, Dalbandin, Merui, and Merui West. Additionally, MariEnergies holds a 60 percent stake in the Ahmad Wal block, partnering with OGDCL, which owns the remaining 40 percent.
OGDCL will take the lead in operating three blocks, including Kalat North, where it holds 100 percent working interest. The company will also spearhead two joint ventures: Naing Sharif, where OGDCL holds a 70 percent stake as operator alongside Prime’s 30 percent share, and Khiu-II, with OGDCL owning 60 percent and MariEnergies 40 percent. Meanwhile, PPL secured the Kalat South block as the highest bidder and will operate it with a 40 percent interest, collaborating with OGDCL and MariEnergies, each holding 30 percent stakes. Pakistan Oilfields Limited (POL) will operate the Jherruk block exclusively, holding 100 percent working interest.
The government has committed to a minimum investment of over $31 million (approximately Rs8.66 billion) over the next three years to support exploration and development activities in these blocks. In addition to financial commitments, the companies have pledged more than Rs276 million for social welfare projects in the regions where the blocks are located. These initiatives are expected to benefit local communities through improved infrastructure, education, and healthcare services, aligning economic development with social responsibility.
Officials anticipate that if commercial quantities of hydrocarbons are discovered, the initial investments will be followed by substantial additional funding for field development and production phases. This could translate into millions of dollars flowing into the sector, further boosting Pakistan’s energy capacity and economic growth. The government views these developments as crucial steps toward achieving greater energy self-sufficiency and reducing the country’s vulnerability to global oil price fluctuations.
During the signing ceremony, Federal Minister for Petroleum Ali Pervaiz Malik highlighted the significance of these agreements, calling them a “major milestone” in the government’s ongoing efforts to strengthen upstream exploration activities. He emphasized that the deals reflect growing investor confidence in Pakistan’s hydrocarbon potential and expressed optimism that recent discoveries will catalyze further exploration, production, and job creation. The minister also pointed out that these efforts would contribute to regional economic development, particularly in underdeveloped areas where the blocks are situated.
Overall, this latest round of block awards marks a proactive step by the Pakistani government to invigorate the oil and gas sector. By fostering collaboration between public and private entities and committing substantial investments, Pakistan aims to secure its energy future, stimulate local economies, and reduce the strain on foreign exchange reserves caused by energy imports.
