Pakistan reopens offshore energy exploration
Analysis based on 8 articles · First reported May 20, 2026 · Last updated May 21, 2026
The reopening of offshore oil and gas exploration in Pakistan is expected to attract significant investment, potentially reaching $1 billion, which will boost the energy sector and reduce the country's reliance on imported fuel. This development could positively impact the stock prices of participating domestic companies like Mari Energies Limited, Oil & Gas Development Company Limited, and Hindustan Petroleum Limited, and improve Pakistan's economic outlook by lowering its energy import bill.
Pakistan has formally reopened its offshore oil and gas exploration frontier after nearly two decades, signing Production Sharing Agreements and Exploration Licences for 23 offshore blocks awarded under the Offshore Bid Round 2025. This initiative, led by Federal Minister for Petroleum Ali Pervaiz Malik, aims to boost domestic energy production and reduce dependence on imported fuel. The awarded blocks, located in the Indus and Makran offshore basins, cover approximately 54,600 square kilometres. The initial investment commitment is around $82 million for geological and geophysical studies, with potential to rise to $1 billion if drilling operations commence. Mari Energies Limited is the most active participant, securing all 23 blocks, while Oil & Gas Development Company Limited and Hindustan Petroleum Limited each secured eight blocks. Other participants include Turkish Petroleum Corporation — TPAO, NNPC, Prime Global Energies Limited, United Energy Pakistan Limited, and Orient Petroleum Incorporation. The government has also introduced new Offshore Petroleum Rules and a Model Production Sharing Agreement to enhance investor confidence and transparency.
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