Pakistan has officially reopened its offshore oil and gas exploration frontier after nearly 20 years, marking a significant step toward reducing dependence on imported fuel and strengthening long-term energy security. The government signed Production Sharing Agreements (PSAs) and exploration licenses for 23 offshore blocks under the Offshore Bid Round 2025.

The newly awarded exploration blocks are located in the offshore Indus and Makran basins near the coastal regions of Sindh and Balochistan. Covering around 54,600 square kilometres, the project is expected to attract major domestic and foreign investment into Pakistan’s energy sector.

Federal Petroleum Minister Ali Pervaiz Malik attended the signing ceremony and described the initiative as a milestone for Pakistan’s economic and energy future. According to reports, companies will initially invest around $82 million in seismic surveys and geological studies, while successful drilling could eventually bring investment to nearly $1 billion.

Major local energy firms, including Mari Energies, Oil and Gas Development Company Limited, and Pakistan Petroleum Limited, are leading the exploration drive. The move comes as Pakistan seeks to tackle rising energy import costs and revive investor confidence in the petroleum sector.