Pakistan Petroleum finds oil & gas from Dhok Sultan-03 Punjab

Pakistan Petroleum finds oil & gas from Dhok Sultan-03 Punjab

Pakistan's oil and gas sector is witnessing renewed interest from American companies as the Pakistani government plans to hold a round of tenders for exploration. This development comes amidst growing global interest in Pakistan's energy resources, with significant discoveries in recent years.

The Pakistani government has been negotiating with American companies to participate in the upcoming auction for exploration rights. Two major oil fields, Makori East and Nashpa, have been discovered, with Makori East being developed by the Hungarian company MOL Group and Nashpa under the control of the Oil&Gas Development Co. [1]

Pakistan's oil and gas sector has seen a decline in foreign investment in recent years. Kuwait Petroleum Corp. withdrew its assets after 40 years of operation, TotalEnergies SE sold its stake in the fuel business, and Shell Plc exited the market after 75 years in Pakistan. Despite these withdrawals, Pakistan remains committed to increasing exploration opportunities to reduce its dependence on oil imports, which amount to about $11 billion annually, or nearly a fifth of the country's total imports. [1]

In early 2025, the Pakistani government announced a bidding round for the development of 40 offshore blocks, including those in the Indus River basin. The Oil&Gas Development Company is currently in talks with several American companies regarding their participation in the auction. Applications for the development of these offshore blocks should be submitted by October 2025. [1]

However, experts caution that investors may face significant risks due to the lack of advanced technology and infrastructure, as well as security concerns. The Oil&Gas Development Company, headquartered in Islamabad, is a Pakistani national oil and gas company negotiating these deals. [1]

This latest round of exploration tenders marks a significant step in Pakistan's efforts to diversify its energy sources and reduce its reliance on imports. American companies' involvement could bring in much-needed technology and investment, potentially transforming the sector's future.

References:
[1] https://www.akm.ru/eng/news/american-companies-show-interest-in-pakistan-s-oil-and-gas-sector/