by After nearly two decades of dormancy, Pakistan has finally unveiled the results of its Offshore Bid Round 2025, marking a historic moment in the country’s pursuit of energy self-sufficiency. The announcement signifies not just a major milestone for the petroleum sector but also a renewed national commitment to harnessing offshore resources to meet growing energy demands.
With the unveiling of these results, Pakistan aims to revitalize exploration in its deep-sea basins, attract foreign investors, and reduce dependency on imported fuels — a step that could reshape the nation’s energy landscape for years to come.
Background: 18 Years of Waiting
Pakistan’s offshore exploration story has been a long one — filled with both hope and hesitation. The last major offshore bid round was held in 2007, and since then, multiple attempts to revive interest have failed due to political instability, fluctuating global oil prices, and uncertain investment climates.
The Offshore Bid Round 2025 thus represents a major breakthrough after an 18-year gap, coming at a time when global energy markets are shifting toward diversification and regional exploration activities are regaining momentum.
Officials from the Ministry of Energy (Petroleum Division) stated that the 2025 round received an encouraging response from both local and international exploration and production (E&P) companies, signaling restored confidence in Pakistan’s offshore potential.
The Announcement and Key Winners
The Ministry of Energy announced the results during a press briefing held in Islamabad, attended by senior government officials, foreign delegates, and industry representatives.
A total of six offshore blocks were offered under the 2025 round, covering areas in the Indus and Makran offshore basins — regions long believed to hold significant hydrocarbon potential.
Out of these, four blocks have been successfully awarded to consortiums comprising both domestic and international companies, while two blocks remain under evaluation due to pending technical reviews.
Awarded Blocks Overview
| Block Name | Location | Winning Consortium/Company | Exploration Focus | Estimated Investment (USD) |
|---|---|---|---|---|
| Indus-North A | Offshore Sindh | Pakistan Petroleum Limited (PPL) & Eni | Gas exploration | $45 million |
| Indus-Mid B | Offshore Karachi | OGDCL & Shell Pakistan | Oil & gas exploration | $55 million |
| Makran-Deep 1 | Offshore Balochistan | Mari Petroleum & ExxonMobil | Deep-sea drilling | $70 million |
| Indus-East 2 | Offshore Sindh | Oil & Gas Development Company Limited (OGDCL) | Natural gas potential | $38 million |
Officials stated that the combined initial investment commitments for these awarded blocks exceed $200 million, with the potential to increase significantly during the drilling and production phases.
Why the Offshore Bid Round Matters
The Offshore Bid Round 2025 is not just about exploration licenses — it represents Pakistan’s renewed strategic approach to energy independence. With rising domestic demand and depleting onshore reserves, the country’s reliance on imported LNG and petroleum products has become a major burden on its foreign exchange reserves.
Exploring and developing offshore resources could help Pakistan:
- Reduce energy imports and save billions in annual expenditures.
- Strengthen energy security by diversifying domestic supply sources.
- Attract foreign investment into the upstream sector.
- Create new employment and technology transfer opportunities in oil and gas services.
Experts note that Pakistan’s offshore sedimentary basins remain largely underexplored, with only a handful of deep-water wells drilled since independence — most notably the Kekra-1 well in 2019. Though Kekra-1 did not yield commercial success, it provided critical geological data that informed the design of the 2025 bid round.
Pakistan Announces Offshore Bid Round 2025 Results After18-Year Hiatus
Government’s Strategic Vision
The federal government has repeatedly emphasized its vision to make Pakistan an energy-secure nation by 2030. Under the Petroleum Policy 2025, a number of reforms were introduced to make offshore exploration more attractive.
Key incentives include:
- Flexible fiscal terms to encourage foreign investment.
- Reduced royalty rates for deep-water exploration.
- Improved data transparency through digital seismic mapping.
- Simplified licensing procedures to cut red tape.
During the announcement, the Minister for Energy stated:
“After 18 years, Pakistan has taken a decisive step to tap into its offshore wealth. This is not just about exploration — it’s about unlocking our future energy independence.”
The policy changes, coupled with improved law and order in coastal regions, have contributed to renewed investor interest, particularly from international oil giants who had previously exited the Pakistani market due to security and regulatory concerns.
Geological Potential: Indus and Makran Offshore Basins
Geologists and energy experts consider the Indus Offshore Basin one of the most promising yet underdeveloped hydrocarbon frontiers in South Asia.
Key Geological Features:
| Basin Name | Potential Resources | Depth Range | Previous Exploration Activity |
|---|---|---|---|
| Indus Offshore Basin | Natural gas and light crude oil | 200–2,000 meters | Multiple seismic surveys, limited drilling |
| Makran Offshore Basin | Gas condensate, possible heavy oil | 500–2,500 meters | Early-stage exploration, high untapped potential |
The Makran basin, extending toward the Iranian maritime border, is particularly significant due to its structural traps and thick sedimentary layers, which resemble known oil-bearing formations in the Gulf region.
According to seismic data collected by the Geological Survey of Pakistan (GSP), the offshore region could potentially hold multi-trillion cubic feet (TCF) of natural gas and substantial oil reserves.
Challenges Ahead
While the announcement has generated optimism, experts caution that offshore exploration remains technically complex and financially demanding.
Major challenges include:
- High drilling costs, often exceeding $60–80 million per well.
- Deep-water engineering limitations due to lack of domestic expertise.
- Environmental and seismic risks in the Makran subduction zone.
- Global oil price volatility, which may impact investor returns.
To mitigate these risks, the government plans to facilitate joint ventures between local and international companies, enabling technology sharing and capacity building.
Environmental protection will also be a top priority. The Petroleum Division announced that all exploration activities will be conducted under strict environmental impact assessments (EIA) to protect marine ecosystems and coastal.
International Response and Investor Sentiment
The results have drawn attention from regional and global energy players. Industry analysts note that Pakistan’s offshore revival aligns with broader regional trends, as India, Bangladesh, and Sri Lanka have also intensified exploration in their respective maritime zones.
International investors view Pakistan’s re-entry into offshore exploration as a positive sign of market maturity, particularly given the government’s efforts to improve contract enforcement, taxation clarity, and logistical infrastructure.
A representative from ExxonMobil, which secured rights for the Makran-Deep 1 block, commented:
“We believe Pakistan’s offshore frontier holds untapped potential. With the right policy continuity, this region could become a key player in South Asia’s energy supply chain.”
This sentiment is shared by local experts who see the 2025 bid round as a turning point that could stimulate further exploration not only offshore but also in underdeveloped onshore basins across Sindh and Balochistan.
Economic Implications
If successful discoveries emerge from these new offshore blocks, the impact on Pakistan’s economy could be transformative.
Potential benefits include:
- Reduced import bill for oil and gas, improving the trade balance.
- Stable energy prices due to domestic production.
- Job creation in drilling, logistics, and engineering sectors.
- Improved investor confidence, boosting the overall business climate.
Energy analysts estimate that even modest offshore discoveries could save Pakistan up to $3–4 billion annually in import costs. Additionally, local refining capacity could be expanded to process any discovered crude domestically, further strengthening the economy.
The Road Ahead
With results now announced, the focus shifts toward operational execution. The awarded companies are expected to begin seismic surveys and pre-drilling studies within the next 12 months.
The Ministry of Energy has set up a monitoring committee to ensure adherence to timelines, environmental standards, and investment commitments.
If the exploration phase yields positive results, test drilling could commence by late 2026, potentially marking Pakistan’s first new offshore production in decades.
Experts suggest that continuity in policy and political stability will be crucial to maintaining investor confidence and ensuring the success of these projects.
Conclusion
The unveiling of the Offshore Bid Round 2025 results marks a historic and hopeful moment for Pakistan’s energy future. After 18 years of inactivity, the country is once again opening its deep-sea frontiers to exploration, signaling resilience and renewed ambition.
The initiative carries immense potential — to bolster the economy, enhance energy security, and attract foreign partnerships. However, its success will depend on consistent policy implementation, technological collaboration, and environmental stewardship.
In a world moving toward sustainable energy diversification, Pakistan’s decision to reignite offshore exploration reflects not only a drive for economic revival but also a determination to chart its own energy destiny.
