Friday, February 27, 2026

Government Grants 11 New Oil and Gas Blocks to Local Companies

The Government of Pakistan has awarded 11 new onshore oil and gas exploration blocks to domestic exploration and production (E&P) companies, securing minimum investment commitments exceeding $31 million over the next three years. The move is part of broader efforts to strengthen domestic energy production and reduce reliance on imported fuels.

The Petroleum Division formalized the awards by signing Petroleum Concession Agreements and Exploration Licences at a ceremony in Islamabad on Thursday, according to Petroleum Minister Ali Pervaiz Malik.

Block Distribution Across Provinces

Of the 11 awarded blocks:

  • Eight are located in Balochistan

  • Two are in Sindh

  • One is in Punjab

The majority of winning bidders are state-backed energy companies, reflecting the government’s strategy to leverage domestic expertise and capital for upstream development.

Key Operators and Joint Ventures

Several leading energy firms secured exploration rights, including Oil and Gas Development Company Ltd. (OGDCL), Pakistan Petroleum Ltd. (PPL), Mari Energies Ltd., Pakistan Oilfields Ltd. (POL), and Prime Global Energies.

Mari Energies

Mari Energies emerged as a major operator in this round, securing six blocks. The company obtained 100% working interest in five blocks — Padag, Chagai, Dalbandin, Merui, and Merui West. It will also operate the Ahmad Wal block with a 60% stake, alongside OGDCL, which holds the remaining 40%.

OGDCL

OGDCL will operate three blocks, including Kalat North with full working interest. It will also lead two joint ventures:

  • Naing Sharif (70% OGDCL, 30% Prime Global Energies)

  • Khiu-II (60% OGDCL, 40% Mari Energies)

Pakistan Petroleum Ltd. (PPL)

PPL emerged as the highest bidder for the Kalat South block and will operate it with a 40% working interest, in partnership with OGDCL (30%) and Mari Energies (30%).

Pakistan Oilfields Ltd. (POL)

Pakistan Oilfields Ltd. secured the Jherruk block with 100% working interest.

Investment and Social Commitments

In addition to the minimum $31 million exploration investment, the companies have collectively committed more than 276 million rupees toward social welfare initiatives in the respective exploration areas.

Officials noted that if commercial hydrocarbon discoveries are made, substantially larger investments — potentially running into hundreds of millions of dollars — would follow for field development and production. Such developments could significantly support Pakistan’s energy security objectives and help reduce the country’s dependence on costly energy imports.

The latest licensing round signals continued momentum in Pakistan’s upstream energy sector, with domestic firms playing a central role in exploration and future production growth.

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