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Government secures $31m investment and Rs276m for social welfare under new exploration licences signed in Islamabad
Aftab Maken
ISLAMABAD: Pakistan on Wednesday awarded 11 onshore oil and gas exploration blocks, securing minimum investment commitments of $31 million, or about Rs8.66 billion, alongside Rs276 million pledged for social welfare projects in local areas.
The Petroleum Division signed Petroleum Concession Agreements and Exploration Licences at a ceremony in Islamabad attended by Federal Minister for Petroleum Ali Pervaiz Malik. The blocks include eight in Balochistan, two in Sindh and one in Punjab, reflecting a renewed push to expand upstream exploration across key basins.
The successful bidders comprise Oil and Gas Development Company Limited, Pakistan Petroleum Limited, Mari Energies Limited, Pakistan Oilfields Limited and Prime Global Energies. The companies committed to invest more than $31 million over the next three years in exploration activities, including seismic surveys and drilling operations.
Speaking at the ceremony, the minister described the agreements as a milestone in efforts to boost domestic exploration, attract investment and reduce reliance on imported fuels. He said the signing demonstrated investor confidence in Pakistan’s upstream potential and could pave the way for additional development spending if commercial discoveries are made.
Mari Energies will operate six of the awarded blocks. The company secured 100% working interest in five blocks—Padag, Chagai, Dalbandin, Merui and Merui West—and will operate the Ahmad Wal block with a 60% working interest, alongside Oil and Gas Development Company Limited holding 40%.
Oil and Gas Development Company Limited will operate three blocks. It holds 100% working interest in Kalat North and will lead the Naing Sharif block with a 70% stake in partnership with Prime Global Energies, which holds 30%. It will also operate the Khiu-II block with a 60% stake, alongside Mari Energies holding 40%.
Pakistan Petroleum Limited emerged as the highest bidder for the Kalat South block and will operate it with a 40% working interest. The block will be developed in partnership with Oil and Gas Development Company Limited holding 30% and Mari Energies holding 30%.
Pakistan Oilfields Limited secured the Jherruk block with a 100% working interest.
The Petroleum Division said that in the event of commercial hydrocarbon discoveries, additional investments worth millions of dollars are expected for field development and production facilities. Officials said such investments would help create employment opportunities, stimulate local economic activity and contribute to improving Pakistan’s energy security.
The government reaffirmed its commitment to providing a stable and investor-friendly regulatory environment to support exploration and sustainable development of indigenous energy resources.
