KARACHI: Pakistan Petroleum Limited (PPL) has signed Production Sharing Agreements (PSAs) and exploration licences for eight offshore exploration blocks awarded under the Pakistan Offshore Bid Round 2025, marking a significant step toward reviving offshore hydrocarbon exploration in the country after nearly two decades.
According to a notice filed by the company with the Pakistan Stock Exchange (PSX), the agreements were executed on May 20, 2026, in the presence of the Federal Minister for Petroleum, following the earlier provisional award of the offshore blocks announced by the company on November 13, 2025.
The company stated that the newly awarded portfolio includes two PPL-operated offshore blocks — Gharo Creek and Kochi Creek — while PPL is also participating in six partner-operated offshore blocks, namely Bin Qasim South, Keti Bandar, Behr, Zarrar, Offshore Deep D and Sapat Bandar.
According to PPL, the blocks are located in the Indus and Makran offshore basins, adjacent to the territorial waters of Sindh and Balochistan, areas considered prospective for hydrocarbon exploration.
The execution of the agreements formally initiates the next phase of exploration activity under the Pakistan Offshore Bid Round 2025 and is being viewed as an important development for Pakistan’s energy sector, particularly at a time when the country continues to face challenges related to energy imports and indigenous resource development.
In its stock filing, PPL described the development as a significant move toward unlocking Pakistan’s offshore hydrocarbon potential and reviving exploration activity in offshore basins that have largely remained dormant for almost twenty years.
PPL had previously informed the PSX in November 2025 regarding the provisional award of the offshore blocks under the bidding round, while the latest agreements and exploration licenses now provide the legal and operational framework for commencement of exploration activities.
Industry experts believe offshore exploration carries significant long-term potential for Pakistan, given the geological similarities between parts of the Indus Basin and hydrocarbon-rich offshore regions elsewhere, although offshore drilling remains capital-intensive and technically complex.
Pakistan’s offshore exploration activity has remained limited in recent years, with no major offshore discoveries made despite earlier drilling campaigns. However, the government has sought to revive investor interest through new bidding rounds and improved regulatory incentives aimed at reducing reliance on imported energy.
PPL, one of Pakistan’s leading exploration and production companies, is expected to work alongside local and international partners in evaluating the offshore acreage and carrying out exploration programmes under the newly signed agreements.
Copyright Business Recorder, 2026
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