In a major boost for Pakistan’s energy sector, the government has officially revived offshore oil and gas exploration after nearly two decades. The country has received bids for 23 of the 40 offshore blocks offered in its first bidding round in 18 years, signaling renewed investor confidence in Pakistan’s energy potential.
A Turning Point for Pakistan’s Offshore Oil and Gas
As per the officials, the 23 awarded blocks is covering an area of roughly 53,500 square kilometers, located in Pakistan’s territorial waters along the Arabian Sea. The government has given these exploration rights to four consortiums led by some of Pakistan’s top energy players — Oil and Gas Development Company Ltd (OGDCL), Pakistan Petroleum Ltd (PPL), MariEnergies, and Turkey’s Türkiye Petrolleri Anonim Ortaklığı (TPAO).
The Turkish state-owned company, TPAO, had earlier signed a joint bidding agreement with PPL to explore Pakistan’s offshore potential. These consortiums have pledged an initial investment of $80 million for the exploration phase, with total spending potentially rising to $1 billion if commercial drilling proceeds successfully.
Experts keep on seeing this as a turning point for Pakistan’s energy independence, as the country currently imports nearly 85% of its crude oil, 29% of its natural gas, and 50% of its LPG. Pakistan’s energy import bill reached $17.5 billion in 2023, and projections suggest it could double by 2030 without significant domestic production increases.
Read more: Pakistan’s Cnergyico will import 1 million barrels of U.S. crude oil in October from Vitol
Untapped Potential Beneath the Arabian Sea
Pakistan’s offshore zone covers around 300,000 square kilometers, bordering energy-rich nations such as Iran, Oman, and the UAE. Yet, only 18 wells have been drilled since independence, leaving much of the country’s hydrocarbon reserves unexplored.
Earlier this year, Pakistan Oilfields Limited (POL) and OGDCL made a major breakthrough with the Makori Deep-03 development well, producing 2,112 barrels of condensate per day and 22 million standard cubic feet of gas per day. Local analysts explained it as one of the region’s most promising finds.
However, experts caution that fully unlocking Pakistan’s offshore reserves will need over $5 billion in exploration funding and $25–30 billion over the next decade to extract even 10% of the country’s vast 235 trillion cubic feet (TCF) of estimated natural gas reserves.
Security and Economic Challenges Remain
Despite this renewed optimism, Pakistan continues to encounter serious challenges — particularly security risks and political instability, which strongly discourage foreign investors. Security threats have already delayed major projects such as the Iran–Pakistan gas pipeline and emphasized the establishment of a Special Security Division for CPEC projects.
The China-Pakistan Economic Corridor (CPEC), a $62 billion initiative has transformed power and transport infrastructure of Pakistan— from the 1,320 MW Sahiwal Coal Plant to the 720 MW Karot Hydropower Project. Yet critics keep on arguing that CPEC has also contributed to rising national debt, with Pakistan’s total public debt now hovering around $269 billion.
A weak tax base and persistent fiscal mismanagement have compounded the crisis, pushing the country to rely heavily on external borrowing.
A New Energy Frontier
Despite the hurdles, Pakistan’s renewed focus on offshore oil and gas exploration is marking a bold step toward energy self-reliance. If managed effectively, the new offshore discoveries could help in reducing
- Import dependence
- Stabilize the economy
- Open the door to sustainable, locally driven energy growth
For a nation long dependent on imported fuels, this revival is not just about oil — it’s about reclaiming control over its energy future.
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