ISLAMABAD: Pakistan has officially revived offshore oil and gas exploration after nearly two decades, marking a major push to strengthen energy security and reduce dependence on costly fuel imports through renewed investment in deep sea resources.

The development was confirmed as the government signed Production Sharing Agreements and Exploration Licences for offshore blocks awarded under the Offshore Bid Round 2025, covering a vast 54,600 square kilometre area across the Indus and Makran offshore basins.

Federal Minister for Petroleum Ali Pervaiz Malik witnessed the signing ceremony and described the milestone as a turning point in Pakistan’s upstream energy strategy. Officials said the renewed offshore push reflects growing investor confidence in the country’s untapped maritime hydrocarbon potential.

Under the bid round, a total of 23 offshore blocks have been awarded, with major participation from leading energy companies including Mari Energies Limited, Oil and Gas Development Company Limited and Pakistan Petroleum Limited, alongside international partners.

The government estimates initial Phase I investment at around 82 million dollars, focused on geological studies, seismic surveys and advanced data analysis. If exploration progresses successfully into drilling activities, total investment could rise to nearly 1 billion dollars over the coming years.

Officials highlighted that Pakistan’s offshore frontier spans more than 282,000 square kilometres, yet only a handful of exploratory wells have been drilled since independence, underscoring the scale of untapped opportunity and long term energy potential.

The Petroleum Division said the new regulatory framework, including offshore petroleum rules and a model production sharing agreement, has been designed to attract global investors. Authorities expect the initiative to generate jobs, support coastal development in Sindh and Balochistan, and significantly reduce Pakistan’s energy import burden if commercial discoveries are made.