Minister tells NA: US, others can participate in offshore oil, gas bidding round

Business Recorder

3 days ago

ISLAMABAD: The government on Wednesday dismissed any notion that Pakistan had entered into an exclusive oil exploration agreement with the United States, informing the National Assembly that all interested parties – including American companies – would be eligible to participate in the forthcoming offshore oil and gas bidding round, with awards expected in October.
Responding to a calling attention notice, the Federal Minister for Petroleum, Ali Pervaiz Malik, stated that the second offshore bidding round was proceeding according to a formal and transparent process, scheduled to conclude on 2nd October this year.
He noted that several international firms from the United States, China, Turkey, Kuwait, and other countries had expressed interest in the bidding rounds.
The calling attention notice was moved by PPP lawmakers Nafeesa Shah, Naveed Qamar, and others, who sought clarification following a 31st July social media post by US President Donald Trump.
Trump's post referred to a 'new deal' between Pakistan and the United States for joint oil development, which caused confusion owing to the absence of any official statement.
In his reply, Malik confirmed that while resource assessments were ongoing, the government had not entered into any exclusive arrangement with any country.
'All decisions regarding block awards will be made after the completion of the offshore bidding process,' he assured the House, adding that Pakistan was engaging with multiple countries to modernise its energy policies and adopt advanced technologies.
The minister emphasised the government's renewed commitment to energy exploration, particularly in the hydrocarbon sector, which had been largely neglected in recent years.
'Pakistan resumed oil and gas exploration earlier this year, launching an onshore bidding round in April that resulted in the award of 13 blocks, including one to Turkish Petroleum,' Malik said.
He added that a second onshore bidding round, covering 23 blocks, was currently underway, with results also anticipated in October.
Regarding the ongoing offshore round – the first in several years – he revealed that it covers 40 blocks, including those along the Indus Basin and near Gwadar. Applications have been submitted by companies from Turkey, China, Kuwait, and the United States.
Details of successful bidders, block allocations, and investment commitments will be disclosed once the process concludes.
On the financial side, Malik said developing a single onshore exploration well requires an investment of approximately $20-25 million, while offshore wells can cost over $120 million.
Turning to unconventional resources, the minister cited a 2009 assessment by Italy's ENI estimating Pakistan's tight gas reserves at around 35 trillion cubic feet – roughly equivalent to three Sui gas fields.
He added that the tight gas policy was updated in 2024 during a meeting of the Council of Common Interests (CCI), with nine new assessments currently underway.
Regarding shale resources, Malik noted Pakistan's estimated shale oil reserves at approximately 14 billion barrels – more than ten times the country's cumulative oil production to date.
He said a pilot shale gas recovery project by the state-owned Oil and Gas Development Company Limited (OGDCL), near Hyderabad, had completed its technical evaluation. A commercial study is now underway, which will inform a revised shale oil policy.
Malik also referred to a 2015 USAID-backed study estimating substantial shale oil and gas potential in the Lower Indus Basin – far exceeding the country's total hydrocarbon extraction since independence.
'American collaboration remains a key component in assessing and developing these unconventional resources,' he affirmed, underlining Pakistan's interest in attracting US investment and expertise to diversify its energy portfolio.
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