Pakistan Awards Offshore Oil Exploration Blocks, First in Decades

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© sharafmaksumov - stock.adobe.com
© sharafmaksumov - stock.adobe.com

Pakistan said it has awarded 23 offshore exploration blocks to four consortiums led by local energy companies, some partnered with foreign firms including Turkey's national oil company TPAO.

In Pakistan's first such bidding round in nearly two decades, its energy ministry said on Friday that bids were awarded for 23 of 40 offshore blocks offered, covering around 53,500 square kilometres.

The energy ministry listed state-run Oil and Gas Development Co. Ltd (OGDCL), Pakistan Petroleum Ltd (PPL) and MariEnergies, along with privately-owned Prime Energy, which is backed by Pakistan's Hub Power Company (Hubco), among the successful bidders.

TPAO secured a 25% stake in one of the awarded blocks and the right to operate it after signing a joint bidding agreement with Pakistan Petroleum Ltd (PPL) earlier this year to explore the country's offshore prospects.

Other partners include Hong Kong-based United Energy Group, Orient Petroleum, a major local independent producer, and Fatima Petroleum, part of Pakistan's Fatima Group conglomerate.

The four winning consortiums, led by OGDCL, PPL, Mari Petroleum and Prime Energy, collectively pledged about $80 million in exploration work over the initial three-year period, the energy ministry said.

Total investment could rise to between $750 million and $1 billion if drilling proceeds, it added.

Pakistan's 300,000 square kilometre offshore zone, bordering energy-rich Oman, the United Arab Emirates and Iran, has seen just 18 wells drilled since the country's independence in 1947, too few to fully assess its hydrocarbon potential.

Pakistan, which imports about half its oil, is seeking to revive foreign interest after the failure of the 2019 Kekra-1 well led to the exit of U.S. major Exxon Mobil.

(Reuters)

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