KARACHI: Pakistan has awarded 11 onshore oil and gas blocks for exploration to state-owned and private firms to boost domestic production and reduce reliance on costly energy imports, the Pakistani information ministry said on Thursday.
Pakistan has faced a widening energy gap due to rising demand and limited domestic output, forcing it to import costly fuels and expose the economy to global price swings. Its petroleum, oil, and lubricants import bill fell 4.39 percent to $9.046 billion in July 2025-January 2026.
On Thursday, the Petroleum Division signed petroleum concession agreements (PCAs) and exploration licenses (ELs) to award 11 onshore blocks for exploration, marking a significant step forward in advancing oil and gas exploration activities across the South Asian country.
The successful joint venture partners include the state-run Oil and Gas Development Company Limited (OGDCL), Pakistan Petroleum Limited (PPL), Mari Energies Limited (MariEnergies), Pakistan Oilfields Limited (POL) and Prime Global Energies (Prime).
“Signing of agreements demonstrate strong investor confidence in Pakistan’s upstream potential,” Petroleum Minister Ali Pervaiz Malik said, adding it aimed to boost domestic exploration, attract investment and reduce reliance on imported energy.
MariEnergies will serve as operator for six blocks. The company has secured 100 percent working interest in five blocks, including Padag, Chagai, Dalbandin, Merui, and Merui West, and will lead the Ahmad Wal block as operator with a 60 percent working interest, alongside the
Oil and Gas Development Company Limited (OGDCL) that will be holding 40 percent.
OGDCL will operate three blocks, including Kalat North with 100 percent working interest. It will also lead two joint venture blocks: Naing Sharif (OGDCL 70 percent as operator, Prime 30 percent) and Khiu-II (OGDCL 60 percent as operator, MariEnergies 40 percent).
PPL emerged as the highest bidder for the Kalat South block and will operate it with a 40 percent working interest, in partnership with OGDCL (30 percent) and MariEnergies (30 percent). POL secured the Jherruk block with 100 percent working interest.
“The minimum committed investment by the successful bidders exceeds USD31 million (approximately Rs8.66 billion) over the next three years,” the information ministry said. “In addition, more than Rs276 million ($987,133) has been committed toward social welfare initiatives in the respective areas.”
In the event of commercial hydrocarbon discoveries, substantial additional investments amounting to millions of dollars are anticipated for field development and production activities, according to the ministry.
Pakistan has announced new oil and gas discoveries in recent months. Islamabad this month announced a discovery at an exploratory well that produced 225 barrels of oil per day (BOPD) and 1.01 million standard cubic feet per day (MMSCFD) of gas.
In January, a discovery regarding an exploratory well, flowing at the rate of 4,100 barrels of oil per day (BOPD) and 10.5 million standard cubic feet per day (MMSCFD) of gas, was made in Kohat. In September 2025, Pakistan Petroleum Limited announced a discovery in Attock district, while Mari Energies reported a new gas find in North Waziristan.
“Recent discoveries would lead to further investments in development and production, create employment opportunities, stimulate economic activity in the regions and will contribute meaningfully to reducing reliance on imported energy,” Malik added.
