Pakistan boosts Offshore Energy exploration & Courts Foreign Investment
Pakistan is actively working to attract foreign investment in its largely untapped offshore oil and gas reserves,recently taking steps to incentivise participation and streamline operations. The Economic Coordination Committee (ECC) has approved measures including license extensions and facilitating working interest assignments in offshore blocks.
A key growth is the approval of a new offshore exploration consortium for the Eastern Offshore block-C. Turkish Petroleum Overseas Company (TPOC) is set to take over operatorship, following Pakistan Petroleum Limited’s (PPL) assignment of a portion of its interest to TPOC, Mari Energies, and the state-run Oil and Gas Development Co Ltd. This arrangement will leave PPL holding a 35% stake, with TPOC controlling 25% and assuming operational responsibility upon the signing of a formal agreement.
Khurram Schehzad, Adviser to the Finance Minister, highlighted the benefits of this transition, stating it will ”bring valuable international offshore operating experience to Pakistan’s exploration landscape” and improve technical capabilities and project delivery. The block already contains a drill-ready prospect, and the consortium’s advancement of drilling preparations is expected to attract further foreign investment.
This move follows the awarding of bids for 23 of 40 offshore blocks in October, covering approximately 53,500 square kilometres – the frist such bidding round as 2007. Pakistan’s vast 300,000 square kilometre offshore zone, bordering Oman, the UAE, and Iran, remains largely unexplored, with only 18 wells drilled since the country’s independence in 1947.
Government Engages with International Investors & Outlines Reforms
In a separate development, Finance Minister Aurangzeb met with a delegation from Dialog, a network founded by tech entrepreneurs Peter thiel and Auren Hoffman. The delegation included prominent figures such as Ambassador Ali Jehangir siddiqui, UK House of Lords Member simon Stevens, Austrian MP Veit Valentin Dengler, Norwegian MP Himanshu Gulati, Jigsaw CEO Yasmin Green, and Xbox-Microsoft Vice President Fatima Kardar.
During the meeting, Minister Aurangzeb detailed Pakistan’s ongoing economic reforms, emphasizing the government’s focus on key areas including tax reform, energy sector restructuring, the privatisation of state-owned enterprises, governance improvements, and the rationalisation of federal expenditures.
Specific initiatives discussed included broadening the tax base through technology and AI-based monitoring,enhancing compliance,and integrating previously under-taxed sectors like real estate,agriculture,and wholesale/retail. Aurangzeb also outlined pension reforms, including a shift to contributory schemes for new entrants and measures to address long-term fiscal liabilities. Improvements to electricity distribution companies, loss-reduction initiatives, increased private-sector representation on boards, and a renewed privatisation pipeline were also presented. The government reaffirmed its commitment to a competitive tariff regime and increased private-sector participation in the energy sector.
