Pakistan awards 24 offshore blocks, attracts $1bn investment

June 12, 2026 (MLN): Pakistan has achieved notable progress in the exploration and development of its oil and gas resources during FY2025-26, with investment in the exploration and production (E&P) sector expected to surpass $1 billion, Finance Minister Senator Muhammad Aurangzeb said while presenting the Federal Budget 2026-27 in the National Assembly on Friday.

Highlighting developments in the energy sector, the finance minister said Pakistan successfully awarded 24 offshore exploration blocks to national and international exploration and production companies, marking the first such large-scale offshore licensing initiative in nearly two decades.

He described the development as a landmark achievement in the country's offshore exploration history, reflecting renewed investor confidence and the government's commitment to enhancing domestic energy production.

The minister informed the House that Türkiye's state-owned oil company, TPAO, has entered Pakistan's offshore exploration sector through partnerships with local companies.

The collaboration is expected to strengthen technical expertise, attract foreign investment, and promote international cooperation in the country's energy industry.

Muhammad Aurangzeb said the E&P sector is projected to attract more than $1 billion in investment during the current fiscal year, underlining the growing interest of local and foreign companies in Pakistan's hydrocarbon potential.

Providing an update on exploration activities, he said 17 new oil and gas discoveries were made during FY2025-26.

These discoveries are expected to contribute approximately 108 million cubic feet per day (mmcfd) of natural gas and around 16,000 barrels of oil per day to the country's indigenous energy production.

In addition to new discoveries, the government implemented production enhancement initiatives that added another 229 mmcfd of gas and 13,000 barrels of oil per day to the national energy system, helping improve domestic supply and reduce reliance on imported fuels.

The minister noted that boosting indigenous oil and gas production remains a key priority of the government's energy strategy, aimed at strengthening energy security, reducing the import bill, and supporting sustainable economic growth.

The latest developments come as Pakistan continues efforts to explore untapped offshore and onshore reserves while seeking greater foreign participation in the energy sector to meet the country's rising energy demand.

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