Pakistan awards 11 oil and gas blocks to local companies – S2S BLOG

The government of Pakistan has awarded eleven onshore oil and gas exploration blocks to local companies, with a minimum investment commitment of more than $31 million over the next three years. The aim of this step is to boost domestic energy production and reduce dependence on imports.

According to Petroleum Minister Ali Pervaiz Malik, the Petroleum Division in Islamabad has signed petroleum concession agreements and exploration licenses. The blocks include eight in Balochistan, two in Sindh and one in Punjab, most of which are awarded to state-backed companies. Successful companies include OGDCL, Pakistan Petroleum Ltd., Mari Energies Ltd., Pakistan Oilfields Ltd. and Prime Global Energies.

Mari Energies will operate six blocks, with a 100% working interest in five and 60% in Ahmad Wal, besides OGDCL, which will operate three other blocks and run two joint ventures. Pakistan Petroleum Ltd. will operate the Kalat South block jointly with partners, while Pakistan Oilfields Ltd. secures the Jherruk block with full interest.

In addition to exploration expenditure, companies have committed more than Rs276 million for local social welfare. Officials said that if commercial discoveries are made, much larger investments will follow for field development and production, further supporting Pakistan’s energy independence.