The federal government on Friday said it has awarded 23 offshore exploration blocks to four consortiums led by local energy companies, some partnered with foreign firms, including Turkiye’s national oil company Turkish Petroleum Corporation (TPAO), after an 18-year gap.

A recent basin study conducted by the US firm DeGolyer and MacNaughton (D&M) has indicated a significant yet-to-be-found potential of hydrocarbons in Pakistans offshore basins. Building on this encouraging assessment, the Offshore Bid Round 2025 was launched in January with a view to offering blocks that allow companies to undertake systematic exploration efforts to test various geological plays across both the Indus and Makran basins.

In Pakistan’s first such bidding round in nearly two decades, the energy ministry said that the bids were awarded for 23 of 40 offshore blocks offered, covering around 53,500 square kilometres.

The energy ministry listed state-run Oil and Gas Development Co. Ltd (OGDCL), Pakistan Petroleum Ltd (PPL) and MariEnergies, along with privately-owned Prime Energy, which is backed by Hub Power Company (Hubco), among the successful bidders.

TPAO secured a 25 per cent stake in one of the awarded blocks and the right to operate it after signing a joint bidding agreement with PPL earlier this year to explore the country’s offshore prospects.

Other partners include Hong Kong-based United Energy Group, Orient Petroleum, a major local independent producer, and Fatima Petroleum, part of the Fatima Group conglomerate.

The four winning consortiums, led by OGDCL, PPL, Mari Petroleum and Prime Energy, collectively pledged about $80 million in exploration work over the initial three-year period, the energy ministry said.

Total investment could rise to between $750m and $1 billion if drilling proceeds, it added.

A total of 4,427 work units have been committed during Phase-I of the initial three-year licence period.

During Phase-I, the companies will undertake comprehensive geophysical and geological (G&G) studies, including seismic data acquisition, processing, and interpretation, to better define the hydrocarbon potential of Pakistans offshore basins. Upon completion of these studies, the Phase-II work programme will be finalised which will include drilling of exploratory wells in the prospective areas.

After the completion of G&G work and drilling planning, the energy ministry will invite global oil majors to join the next phase of offshore exploration, several of whom are already in contact with the government and local companies and are currently evaluating the available data.

Pakistan’s 300,000 square kilometre offshore zone, bordering energy-rich Oman, the United Arab Emirates and Iran, has seen just 18 wells drilled since independence in 1947, too few to fully assess its hydrocarbon potential.

Pakistan, which imports about half its oil, is seeking to revive foreign interest after the failure of the 2019 Kekra-1 well led to the exit of US major Exxon Mobil.

In July, Pakistan and the United States had finalised a trade deal while US President Donald Trump cited a pact aimed at helping develop Pakistan’s oil reserves.

Pakistan’s proven oil reserves are currently estimated at 353m barrels, according to the US Energy Information Administration (EIA).

Its current oil and condensate production stands at 60,000 barrels per day.

With an annual oil import bill of over $12bn, the country imports fuel mainly from Saudi Arabia, the United Arab Emirates, Qatar, Kuwait and China. It has also started importing crude oil from Russia on a small scale.

The EIA once estimated that Pakistan holds up to 9bn barrels of technically recoverable shale oil.