The Government of Pakistan has awarded exploration rights for 11 onshore oil and gas blocks, securing a committed investment of over Rs 8.66 billion in a significant move aimed at bolstering the nation’s domestic energy production and reducing its dependence on foreign fuel imports.
The Petroleum Concession Agreements (PCAs) and Exploration Licences (ELs) were finalised at a ceremony in the capital, attended by Federal Minister for Petroleum Ali Pervaiz Malik, according to an official report today.
The newly awarded blocks are distributed across the country, with eight located in Balochistan, two in Sindh, and one in Punjab. The agreements also include a commitment of over Rs 276 million for social welfare projects in these regions.
Speaking at the event, the petroleum minister described the agreements as a significant milestone, highlighting that the move demonstrates robust investor confidence in Pakistan”s upstream potential. He expressed optimism that the exploration would lead to further investment, create employment, and contribute meaningfully to the country”s energy security.
Mr Malik reaffirmed the government”s commitment to facilitating exploration by maintaining a stable and investor-friendly environment for the sustainable development of indigenous energy resources.
A consortium of national and private companies secured the licences. Mari Energies Limited will serve as the operator for six blocks, holding a 100% working interest in five of them: Padag, Chagai, Dalbandin, Merui, and Merui West. It will also lead the Ahmad Wal block as operator with a 60% stake.
The Oil and Gas Development Company Limited (OGDCL) is set to operate three blocks, including Kalat North with full ownership. The state-owned enterprise will also lead joint ventures for the Naing Sharif block with Prime Global Energies and the Khiu-II block with MariEnergies.
Pakistan Petroleum Limited (PPL) emerged as the highest bidder for the Kalat South block, which it will operate with a 40% working interest in partnership with OGDCL and MariEnergies. Pakistan Oilfields Limited (POL) secured the Jherruk block with a 100% working interest.
The minimum investment pledged by the successful bidders for exploration activities over the next three years totals more than USD 31 million. Officials anticipate that any commercial hydrocarbon discoveries could trigger substantial additional investment, amounting to millions of dollars, for field development and production.