New Blocks and Investment Commitments
The government of Pakistan has moved to strengthen domestic energy supplies by awarding 11 new onshore oil and gas exploration blocks to local exploration and production (E&P) companies. The latest bidding round has secured minimum work commitments of more than $31 million over the next three years, according to the Petroleum Division. Officials say the new licences are expected to support fresh exploration activity at a time when Pakistan remains heavily dependent on imported fuel for power generation and industrial use.
Petroleum Minister Ali Pervaiz Malik announced that the Petroleum Division signed Petroleum Concession Agreements (PCAs) and Exploration Licences (ELs) for the blocks at a ceremony in Islamabad. Under these agreements, the winning companies are required to carry out seismic surveys, geological studies, and exploratory drilling in the newly awarded areas. The minimum exploration spend of more than $31 million over three years is seen as a starting point, with the potential for much larger investment if commercial discoveries are made.
In addition to exploration spending, the government has also secured social welfare commitments worth over Rs 276 million. These funds are to be invested in local infrastructure, education, health, and community development projects in the areas where exploration work will take place.
Where the New Exploration Blocks Are Located
Out of the 11 new blocks, eight are located in Balochistan, two in Sindh, and one in Punjab. Balochistan, in particular, has long been considered under-explored but geologically promising for hydrocarbons. Expanding exploration there could open up new frontiers for gas and oil discoveries if the subsurface data proves positive.
Sindh already hosts several producing fields and key parts of Pakistan’s gas infrastructure, while Punjab has smaller but strategically important onshore prospects. By spreading the licences across three provinces, the government aims to diversify exploration risk and promote balanced development across different regions of the country.
Most of the successful bidders are state-backed or well-established local E&P firms. The winning joint ventures include Oil and Gas Development Company Ltd. (OGDCL), Pakistan Petroleum Ltd. (PPL), Mari Energies Ltd., Pakistan Oilfields Ltd. (POL), and Prime Global Energies. These companies already have operational experience in Pakistan’s upstream sector, which should help them move quickly from licensing to on-ground work.
Which Companies Won and Who Will Operate the Blocks
Mari Energies will act as operator for six of the new blocks. It has secured 100 percent working interest in five blocks — Padag, Chagai, Dalbandin, Merui, and Merui West — and will operate the Ahmad Wal block with a 60 percent stake alongside OGDCL, which holds the remaining 40 percent. OGDCL itself will operate three blocks, including Kalat North with full working interest. It will also lead two joint ventures: Naing Sharif, where it holds 70 percent and Prime Global Energies 30 percent, and Khiu-II, where OGDCL holds 60 percent and Mari Energies 40 percent.
Pakistan Petroleum Ltd. emerged as the highest bidder for the Kalat South block. PPL will operate this block with a 40 percent working interest, in partnership with OGDCL and Mari Energies, which each hold 30 percent. Pakistan Oilfields Ltd. secured the Jherruk block with 100 percent working interest, giving it full operational control over exploration activities in that licence area.
Social Welfare and Local Community Benefits
Beyond exploration work, the new awards come with commitments to invest more than Rs 276 million in social welfare initiatives in the surrounding communities. These funds are expected to support projects such as road improvements, access to clean drinking water, healthcare facilities, and educational support for local residents. Authorities say this approach is aimed at ensuring that people living near exploration areas see direct benefits from energy sector activity.
Companies are also expected to engage with local stakeholders, create employment opportunities during the exploration and development phases, and follow environmental and safety standards. If managed well, these commitments can help build trust with communities and reduce opposition to on-ground operations.
Why These Awards Matter for Pakistan’s Energy Security
Pakistan has struggled with repeated energy shortages and a heavy reliance on imported fuels, including LNG and petroleum products. Any successful discovery from these newly awarded blocks could, over time, add to domestic gas and oil production and reduce pressure on foreign exchange reserves. Officials noted that if commercial hydrocarbon deposits are found, the capital investment required for field development and production could run into hundreds of millions of dollars.
While exploration always carries geological and commercial risks, the government is banking on a larger, more active portfolio of blocks to raise the chances of meaningful discoveries. The 11 new awards are part of a broader strategy to revive exploration interest, support local E&P companies, and gradually narrow the gap between Pakistan’s energy demand and indigenous supply.
