KARACHI, Feb. 27, 2026 — Pakistan has awarded 11 onshore oil and gas exploration blocks to state-owned and private firms, as the government seeks to expand domestic production and curb reliance on costly energy imports.
The agreements were signed Thursday by the Petroleum Division under the Ministry of Energy, marking what officials described as a significant push to unlock upstream potential in a country grappling with a widening energy deficit.
Pakistan’s petroleum import bill totaled $9.046 billion between July 2025 and January 2026, down 4.39 percent from a year earlier, but the economy remains exposed to global price volatility due to limited domestic output and rising demand.
“Signing of agreements demonstrates strong investor confidence in Pakistan’s upstream potential,” Petroleum Minister Ali Pervaiz Malik said in a statement. He added that the move aimed to boost exploration activity, attract investment and reduce dependence on imported fuels.
Mix of state-run and private operators
The successful joint venture partners include state-run Oil and Gas Development Company Limited (OGDCL) and Pakistan Petroleum Limited (PPL), as well as Mari Energies Limited, Pakistan Oilfields Limited (POL) and Prime Global Energies.
Mari Energies will operate six blocks, holding 100 percent working interest in five — Padag, Chagai, Dalbandin, Merui and Merui West — and leading the Ahmad Wal block with a 60 percent stake, alongside OGDCL’s 40 percent share.
OGDCL will operate three blocks, including Kalat North with full ownership. It will also lead two joint ventures: Naing Sharif (70 percent OGDCL, 30 percent Prime) and Khiu-II (60 percent OGDCL, 40 percent Mari Energies).
PPL secured the Kalat South block as highest bidder and will operate it with a 40 percent stake, in partnership with OGDCL (30 percent) and Mari Energies (30 percent). POL was awarded the Jherruk block with 100 percent working interest.
Investment commitments
According to the information ministry, minimum committed investment by the successful bidders exceeds $31 million (approximately Rs8.66 billion) over the next three years. Companies have also pledged more than Rs276 million (about $987,000) toward social welfare initiatives in the respective areas.
Officials said that in the event of commercial hydrocarbon discoveries, substantially larger investments would follow for field development and production.
Pakistan has reported several new oil and gas finds in recent months, including an exploratory well producing 225 barrels of oil per day and 1.01 million standard cubic feet per day of gas, as well as a January discovery in Kohat yielding 4,100 barrels per day and 10.5 million cubic feet of gas.
In September 2025, PPL 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 said.
Energy analysts note that while new exploration blocks and discoveries signal momentum, translating them into sustained production gains will depend on successful drilling outcomes, security conditions and stable policy support.
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