Govt signs deal for 11 oil and gas blocks to boost exploration

February 27, 2026 (MLN): The Petroleum Division have signed Petroleum Concession Agreements (PCAs) and Exploration Licences (ELs) for 11 onshore oil and gas blocks in a major push to accelerate domestic exploration and production activities.

The agreements were formalized at a ceremony in Islamabad attended by Federal Minister for Petroleum Ali Pervaiz Malik, according to a press release issued.

Of the 11 blocks awarded, eight are located in Balochistan, two in Sindh, and one in Punjab.

The move is aimed at enhancing exploration efforts, attracting fresh investment, and reducing the country’s reliance on imported energy resources.

The successful joint venture partners include Oil and Gas Development Company Limited (OGDCL), Pakistan Petroleum Limited (PPL), Mari Energies Limited (MariEnergies), Pakistan Oilfields Limited (POL), and Prime Global Energies (Prime).

Addressing the ceremony, the minister described the signing as a significant milestone in the government’s strategy to boost indigenous exploration and strengthen energy security.

He said the agreements reflect strong investor confidence in Pakistan’s upstream potential and expressed optimism that recent discoveries would spur further investment in development and production.

He added that the initiatives would generate employment, stimulate regional economic activity, and contribute meaningfully to cutting the import bill.

MariEnergies will operate six blocks, securing 100% working interest in Padag, Chagai, Dalbandin, Merui, and Merui West.

The company will also lead the Ahmad Wal block as operator with a 60% working interest, while OGDCL will hold the remaining 40% stake.

OGDCL will operate three blocks, including Kalat North with 100% working interest.

It will also lead the Naing Sharif block with a 70% stake alongside Prime (30%), and the Khiu-II block with a 60% stake in partnership with MariEnergies (40%).

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 MariEnergies (30%).

Meanwhile, POL secured the Jherruk block with 100% working interest.

The minimum committed investment by the successful bidders exceeds $31 million (approximately Rs8.66 billion) over the next three years.

Additionally, more than Rs276 million has been pledged for social welfare initiatives in the respective areas.

In case of commercial hydrocarbon discoveries, further investments amounting to millions of dollars are expected for field development and production activities.

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