The government of Pakistan has awarded 11 new onshore oil and gas exploration blocks to local exploration and production companies, securing minimum investment commitments of more than 31 million dollars over the next three years to strengthen domestic energy supplies.
The Petroleum Division signed Petroleum Concession Agreements and Exploration Licences for the blocks at a ceremony in Islamabad, according to Petroleum Minister Ali Pervaiz Malik. Of the 11 blocks, eight are located in Balochistan, two in Sindh, and one in Punjab.
Most of the successful bidders are state-backed energy firms. The joint ventures include Oil and Gas Development Company Ltd. (OGDCL), Pakistan Petroleum Ltd. (PPL), Mari Energies Ltd., Pakistan Oilfields Ltd. (POL), and Prime Global Energies.
Mari Energies will operate six blocks. The company secured 100 percent working interest in five blocks, Padag, Chagai, Dalbandin, Merui, and Merui West. It will also operate the Ahmad Wal block with a 60 percent stake, while OGDCL holds the remaining 40 percent.
OGDCL will operate three blocks, including Kalat North with full working interest. It will also lead to two joint ventures: Naing Sharif, where OGDCL holds 70 percent, and Prime Global Energies holds 30 percent, and Khiu-II, where OGDCL has a 60 percent stake and Mari Energies holds 40 percent.
Pakistan Petroleum Ltd. emerged as the highest bidder for the Kalat South block and will operate it with a 40 percent working interest, in partnership with OGDCL (30 percent) and Mari Energies (30 percent). Pakistan Oilfields Ltd. secured the Jherruk block with 100 percent working interest.
In addition to exploration spending, the companies have committed more than 276 million rupees toward social welfare initiatives in the respective project areas.
Officials said that if commercial hydrocarbon discoveries are made, significantly larger investments would follow for development and production. Such discoveries could help reduce Pakistan’s reliance on imported energy and improve the country’s energy security over the long term.
