ISLAMABAD: The government on Thursday awarded 11 oil and gas blocks in Punjab, Sindh and Balochistan to local exploration and production companies, mostly those owned by the government itself.

The minimum committed investment by the successful bidders exceeds $31 million (Rs8.66bn) over the next three years. In addition, more than Rs276m has been committed towards social welfare initiatives in the respective areas.

The Petroleum Division of the federal government signed Petroleum Concession Agreements (PCAs) and Exploration Licences (ELs) awarding 11 onshore blocks at a ceremony presided over by federal Minister for Petroleum Ali Pervaiz Malik. 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 Ltd (OGDCL), Pakistan Petroleum Ltd (PPL), Mari Energies Ltd (Mari Energies), Pakistan Oilfields Ltd (POL) and Prime Global Energies (Prime). Mari Energies will serve as operator for six blocks.

The company has secured 100pc working interest in five blocks including Padag, Chagai, Dalbandin, Merui, and Merui West and will lead the Ahmad Wal block as operator with a 60pc working interest, alongside OGDCL holding 40pc. OGDCL will operate three blocks, including Kalat North with 100pc working interest.

Local firms get exploration rights; investment of Rs8.66bn on cards

It will also lead two joint venture blocks: Naing Sharif (OGDCL 70pc as operator, Prime 30pc) and Khiu-II (OGDCL 60pc as operator, Mari Energies 40pc). PPL emerged as the highest bidder for the Kalat South block and will operate it with a 40pc working interest, in partnership with OGDCL (30pc) and Mari Energies (30pc).

POL secured the Jherruk block with 100pc working interest. In the event of commercial hydrocarbon discoveries, substantial additional investments amounting to millions of dollars are anticipated for field development and production activities.

Published in Dawn, February 27th, 2026