The Petroleum Division, Government of Pakistan Thursday signed Petroleum Concession Agreements (PCAs) and Exploration Licences (ELs) awarding 11 onshore blocks marking a significant step forward in advancing oil and gas exploration activities across the country.
The signing ceremony was held in Islamabad, and was attended by the Federal Minister for Petroleum Ali Pervaiz Malik, said a news release.
The awarded blocks include eight in Balochistan, two in Sindh, and one in Punjab.
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).
Speaking at the ceremony, the Minister for Petroleum termed the signing a significant milestone in the government’s efforts to boost domestic exploration, attract investment, and reduce reliance on imported energy. Signing of agreements demonstrate strong investor confidence in Pakistan’s upstream potential.
The Minister expressed confidence that recent discoveries would lead to further investments in development and production, create employment opportunities, stimulate economic activity in the regions and will contribute meaningfully to reducing reliance on imported energy.
He reaffirmed the Government’s commitment to facilitate exploration activities ensuring a stable investor-friendly environment for promoting the sustainable development of Pakistan’s indigenous energy resources.
MariEnergies will serve as operator for six blocks. The company has secured 100% working interest in five blocks: Padag, Chagai, Dalbandin, Merui, and Merui West and will lead the Ahmad Wal block as operator with a 60% working interest, alongside OGDCL holding 40%.
OGDCL will operate three blocks, including Kalat North with 100% working interest. It will also lead two joint venture blocks: Naing Sharif (OGDCL 70% as operator, Prime 30%) and Khiu-II (OGDCL 60% as operator, 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%).
POL secured the Jherruk block with 100% working interest. The minimum committed investment by the successful bidders exceeds USD 31 million (approximately Rs. 8.66 billion) over the next three years. In addition, more than Rs. 276 million has been committed towards social welfare initiatives in the respective areas.
In the event of commercial hydrocarbon discoveries, substantial additional investments amounting to millions of Dollars are anticipated for field development and production activities.