In a strategic move to enhance domestic energy production and lessen the country’s dependence on imported fuels, Pakistan has officially awarded 11 new onshore oil and gas exploration blocks. This significant development was announced during a formal ceremony held in Islamabad, where the Government’s Petroleum Division finalized Petroleum Concession Agreements (PCAs) and Exploration Licences (ELs) with various industry players. The event was graced by the Federal Minister for Petroleum, Ali Pervaiz Malik, who emphasized the importance of this initiative in strengthening Pakistan’s upstream energy sector.
The newly allocated blocks are distributed across three provinces, with eight located in Balochistan, two in Sindh, and one in Punjab. This geographic spread reflects the government’s intent to tap into diverse hydrocarbon-rich regions across the country. The awarded blocks will be operated by a consortium of prominent national oil and gas companies, including Oil and Gas Development Company Limited (OGDCL), Pakistan Petroleum Limited (PPL), Mari Energies Limited (MariEnergies), Pakistan Oilfields Limited (POL), and Prime Global Energies (Prime). These firms bring decades of experience and technical expertise, which are expected to accelerate exploration activities and eventual production.
Among the operators, MariEnergies has taken a leading role by securing operational control over six blocks. The company holds full working interest in five blocks—Padag, Chagai, Dalbandin, Merui, and Merui West—while sharing a 60 percent stake in the Ahmad Wal block with OGDCL, which holds the remaining 40 percent. OGDCL itself will operate three blocks, including Kalat North, where it retains 100 percent working interest. Furthermore, OGDCL will spearhead two joint venture blocks: Naing Sharif, where it holds a 70 percent operational stake alongside Prime’s 30 percent, and Khiu-II, with a 60 percent share for OGDCL and 40 percent for MariEnergies.
Pakistan Petroleum Limited (PPL) emerged as the highest bidder for the Kalat South block and will manage operations with a 40 percent working interest, collaborating with OGDCL and MariEnergies, each holding 30 percent. Meanwhile, Pakistan Oilfields Limited (POL) secured exclusive rights to the Jherruk block, maintaining 100 percent working interest. This diverse partnership structure not only spreads operational responsibilities but also pools resources and expertise, which is crucial for the success of exploration projects in challenging terrains.
Officials have confirmed that the minimum committed investment for these blocks exceeds $31 million, roughly equivalent to Rs8.66 billion, to be deployed over the next three years. This financial commitment underscores the confidence of both the government and the participating companies in the potential of these blocks. Additionally, more than Rs276 million has been earmarked for social welfare projects in the local communities surrounding the exploration areas. Such initiatives aim to foster goodwill and ensure that the benefits of resource development extend beyond the energy sector, contributing to regional socio-economic uplift.
Looking ahead, the authorities anticipate that successful commercial discoveries of hydrocarbons will trigger further investments worth millions of dollars dedicated to field development and production phases. This would not only enhance Pakistan’s energy self-sufficiency but also create employment opportunities and stimulate economic growth in the regions involved.
During his address at the signing ceremony, Federal Minister Ali Pervaiz Malik described the awarding of these blocks as a pivotal achievement in the government’s broader agenda to boost upstream exploration activities. He highlighted that the agreements symbolize growing investor trust in Pakistan’s vast hydrocarbon reserves. The minister expressed optimism that recent discoveries and ongoing exploration efforts will open new avenues for energy development, job creation, and overall regional prosperity, reinforcing Pakistan’s energy security in the years to come.
