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Pakistan On-Shore Bidding Round 2025

Pakistan On-Shore Bidding Round 2025

S. No. Block Name Zone Area (km²) Location (Districts)
1
PARKINI-II BLOCK-A (2564-6)
Zone-I
1,892
Awaran & Kech
2
PARKINI-II BLOCK-B (2564-7)
Zone-I
1,908
Pasni & Awaran
3
RASHMALAN-II (2564-8)
Zone-I
1,196
Pasni & Awaran
4
RASHMALAN-II WEST (2564-9)
Zone-I
1,451.97
Pasni & Awaran
5
PHARPUR-II (3170-13)
Zone-II
1,222.6
D. I. Khan & Tank
6
KHIU-II (3171-4)
Zone-II
2225.15
Bhakkar & Khushab
7
LAYYAH-II (3070-18)
Zone-II
1445.81
Layyah & D. G. Khan
8
ALIPUR-II (2970-10)
Zone-II
2225.15
Muzaffargarh, Multan, Bahawalpur and Rahimyar Khan
9
RACHNA-II (3071-6)
Zone-II
1,189.55
Khanewal, Jhang & Layyah
10
KHANPUR-II (2870-8)
Zone-II
1,189.55
Rahim Yar Khan
11
CHHALGARI (2867-7)
Zone-II
2,485.19
Bolan, Nasirabad & Jhal Magsi
12
DERA MURAD JAMALI (2868-9)
Zone-II
2,282.09
Bolan, Nasirabad, Jaffarabad & Jacobabad
13
KALAT SOUTH (2865-5)
Zone-II
2,488.19
Kalat & Jhal Magsi
14
SOHBAT PUR (2868-8)
Zone-III
2,497.50
Jacobabad, Jaffarabad, Kashmore & Dera Bughti
15
KOT MAGSI (2767-6)
Zone-III
2,213.43
Nasirabad, Jhal Magsi, Jaffarabad, Kambar/ Shahdad Kot & Jacobabad
16
KAMBAR (2767-5)
Zone-III
2,245.86
Kambar/Shahdad Kot & Larkana
17
ZAMZAMA-II SOUTH (2667-16)
Zone-III
473.90
Jamshoro & Dadu
18
SUKHPUR-II (2568-23)
Zone-III
2,488.36
Jamshoro & Nawabshah
19
NAING SHARIF (2667-20)
Zone-III
205.58
Jamshoro & Dadu
20
JHERRUCK (2468-13)
Zone-III
732.73
Thatta & Tando Muhammad Khan
21
ZIARAT NORTH (2966-3)
Zone-I (F)
2,120.5
Ziarat, Loralai, Quetta, Mastung, Sibi, Pishin & Mach
22
KALAT NORTH (2966-4)
Zone-I (F)
2,499.96
Kalat, Mastung & Noshki
23
AHMAD WAL (2965-1)
Zone-I (F)
2,268
Kharan & Noshki
24
PADAG (2864-3)
Zone-I (F)
2,477.39
Chagai & Noshki
25
CHAGAI (2864-4)
Zone-I (F)
2,474.17
Chagai
26
DALBANDIN (2864-5)
Zone-I (F)
2,497.99
Chagai
27
MERUI (2864-6)
Zone-I (F)
2,478.68
Chagai
28
MERUI WEST (2863-1)
Zone-I (F)
2,491.45
Chagai
29
NOKUNDI SOUTH (2763-7)
Zone-I (F)
2,158.75
Chagai, Kharan
30
NOKUNDI (2862-2)
Zone-I (F)
2,452.3
Chagai
31
TOZGI (2861-1)
Zone-I (F)
2,427.58
Chagai

ZONE I

1. PARKINI-II BLOCK-A (2564-6)

The Parkini-II Block-A, covering 1,892 sq. km in Balochistan’s Kech, Awaran, and Gwadar districts, is located in the Makran Basin, with estimated resources of 8,676 million barrels of oil and 78 trillion cubic feet of gas. The block falls within Prospectivity Zone I and features favorable petroleum systems with source rocks like the Oligocene Hoshab Formation and Miocene Panjgur and Parkini Formations.

2. PARKINI-II BLOCK-B (2564-7)

Parkini-II Block-B, covering 1,908 sq. km in Balochistan’s Awaran and Gwadar districts, is part of the Makran Basin and lies within Prospectivity Zone I. The block is estimated to hold 8,676 million barrels of oil and 78 trillion cubic feet of gas. The petroleum system features source rocks from the Oligocene Hoshab Formation, Miocene Panjgur and Parkini Formations, and Pliocene Talar/Hinglaj Formations, while reservoir rocks include Middle to Upper Miocene turbidities.

3. RASMALAN-II (2564-8)

Rasmalan-II Block spans 1,196 sq. km in Balochistan’s Makran Basin, with estimated resources of 8,676 million barrels of oil and 78 trillion cubic feet of gas. The block’s geological setting includes potential anticline structures and diapirism, offering significant exploration opportunities. Nearby infrastructure, including gas fields and thermal power stations, adds to its attractiveness.

4. RASMALAN-II West (2564-9)

Rasmalan-II West Block spans 1,451.97 sq. km in Balochistan’s Makran Basin, with estimated resources of 8,676 million barrels of oil and 78 trillion cubic feet of gas. The block features thrust-related anticlines and diapirism, making it a strong candidate for hydrocarbon exploration. Located near existing gas fields and thermal power stations, the block benefits from government support for infrastructure development.

ZONE II

5. PAHARPUR-II (3170-13)

The Paharpur-II Block, located in Dera Ismail Khan and Tank districts of Khyber Pakhtunkhwa, Pakistan, covers 1,222.6 sq. km. It is situated within the Sulaiman Foldbelt and has estimated resources of 2,880 million barrels of oil and 69.12 trillion cubic feet of gas. The block features favorable petroleum systems with source rocks like the Sembar Formation and reservoir rocks such as the Pirkoh and Habib Rahi formations.

6. KHIU-II (3171-4)

The Khiu-II Block, located in Khushab and Bakhar districts of Punjab, Pakistan, is part of the Onshore Block Bidding Round 2025. Covering 2225.15 sq. km in the Punjab Platform, the block holds estimated resources of 2,880 million barrels of oil and 69.12 trillion cubic feet of gas. Surrounded by key neighboring blocks, it has been the subject of seismic data collection from major companies.

7. LAYYAH-II (3070-18)

The Layyah-II Block, located in Punjab, Pakistan, spans 1445.81 sq. km and lies in the Central Indus Basin. It falls under Prospectivity Zone II, with significant resources estimated at 2880 million barrels of oil and 69.12 trillion cubic feet of gas. The block has been explored by companies like AMOCO, OGDCL, UNOCAL, and PPL, with extensive 2D data acquired. Geological formations in the area include fault-bounded structures and thick-skinned tectonics, with the Sembar Formation (Cretaceous) as the primary source rock. The trapping mechanism includes pinch-out traps and anticlines.

8. ALIPUR-II (2970-10)

The Khiu-II Block, located in Khushab and Bakhar districts of Punjab, Pakistan, is part of the Onshore Block Bidding Round 2025. Covering 2225.15 sq. km in the Punjab Platform, the block holds estimated resources of 2,880 million barrels of oil and 69.12 trillion cubic feet of gas. Surrounded by key neighboring blocks, it has been the subject of seismic data collection from major companies.

9. RACHNA-II (3071-6)

Rachna-II Block covers 1,189.55 sq. km in Punjab’s Middle Indus Basin, with estimated resources of 200 million barrels of oil and 19.6 trillion cubic feet of gas. It has high exploration potential due to varied structural patterns and excellent reservoir rocks.

10. KHANPUR-II (2870-8)

The Khanpur-II Block, located in the Rahimyar Khan district of Punjab, Pakistan, is part of the Onshore Block Bidding Round 2025. Spanning 2245.41 sq. km in the Punjab Platform, this block is estimated to contain 2,880 million barrels of oil and 69.12 trillion cubic feet of gas. Surrounded by key neighboring blocks, it presents significant hydrocarbon potential, supported by seismic data from past acquisitions.

11. CHHALGARI (2867-7)

Nestled in the heart of Balochistan’s dynamic geological landscape, the Chhalgari Block is a promising frontier for hydrocarbon exploration. Spanning 2,485.19 sq. km across Nasirabad, Bolan, and Jhal Magsi districts, this region boasts significant untapped potential with an estimated 8,676 million barrels of oil and 78 trillion cubic feet of gas.

12. DERA MURAD JAMALI(2868-9)

The Dera Murad Jamali Block, spanning 2,282.09 sq. km in the Lower Indus Basin, is a promising hydrocarbon exploration site under the Kirthar Fold Belt. Rich in Cretaceous Sembar shales (source rock) and with proven reservoirs like Mughalkot, Pab Sandstone, and Sui Main Limestone, the block offers significant oil and gas potential.

13. KALAT SOUTH (2865-5)

The Kalat South Block, located in the heart of Balochistan, Pakistan, is part of the Onshore Block Bidding Round 2024. Covering 2488.19 sq. km, this highly prospective area offers significant hydrocarbon resources, including an estimated 8,676 million barrels of oil and 78 trillion cubic feet of gas.

ZONE III

14. SOHBAT PUR (2868-8)

The Sohbat Pur Block, covering 2,497.50 sq. km in the Central Indus Basin, is a promising area for hydrocarbon exploration. It falls within Prospectivity Zone III and is surrounded by Zorghar, Zin, and Yasin blocks. The block benefits from extensive 2D seismic data collected over multiple years and features both structural and stratigraphic traps. Nearby infrastructure includes gas fields, pipelines, purification plants, and a thermal power plant.

15. KOT MAGSI (2767-6)

The Kot Magsi Block, located in Balochistan, Pakistan, spans 2213.43 sq. km and falls under Prospectivity Zone III. It holds significant hydrocarbon potential, with estimated resources of 8,676 million barrels of oil and 78 trillion cubic feet of gas in the Balochistan Basin. The block has been explored by major companies like Amoco, BP, OMV, and others. The area’s geological history shows tectonic influences, with the Kalat Anticlinorium and surrounding structures offering favorable exploration conditions.

16. KAMBAR (2767-5)

The Kambar Block, located in the Sindh province of Pakistan, is part of the Onshore Block Bidding Round 2025. Covering 2245.86 sq. km in the Kirthar Foldbelt, this block holds significant hydrocarbon potential with estimated resources of 4,740 million barrels of oil and 64.75 trillion cubic feet of gas.

17. ZAMZAMA-II SOUTH (2667-16)

The Zamzama-II South block covers 473.90 sq. km in the Lower Indus Basin, Pakistan, and is located in Prospectivity Zone III. The block has substantial hydrocarbon potential, with the Pab Formation as a primary reservoir and the Mughal Kot Shale as the source rock. Nearby infrastructure, including thermal power plants, supports development.

18. SUKHPUR-II (2568-23)

The Sukhpur-II Block, covering 2,488.36 sq. km in the Kirthar Foldbelt of Sindh, Pakistan, presents a significant opportunity for hydrocarbon exploration. Located in Prospectivity Zone III, it is surrounded by nearby blocks with successful gas discoveries. The main trapping mechanism involves anticlinal traps linked to thrust faults. The block benefits from substantial seismic data, including 2D and 3D surveys. Nearby infrastructure, including gas fields, thermal power stations, and oil storage, provides strong support for development.

19. NAING SHARIF (2667-20)

The Naing Sharif Block, located in Shaheed Benazir Abad and Jamshoro districts, Sindh, spans 205.58 sq. km. with estimated resources of 4,740 million barrels of oil and 64.75 trillion cubic feet of gas. Situated in the Kirthar Foldbelt, it benefits from nearby gas fields and thermal power stations.

20. JHERRUCK 2469-13

The Jherruck Block (732.73 sq. km) in the Lower Indus Basin, Pakistan, lies in prospectivity Zone 3 and features rich hydrocarbon potential. Its petroleum system includes Sembar Shales (source rock), Lower Goru sands (reservoir), and Upper Goru marls (seal), with structural traps formed by tilted horst blocks. With substantial seismic data (2256.77 km of 2D and 2905.66 sq. km of 3D) and nearby prolific gas discoveries, the block offers a low-risk, high-reward investment opportunity.

ZONE I (F)

21. ZIARAT NORTH (2966-3)

The Ziarat North block spans 2120.5 sq. km in Balochistan, Pakistan, located within the Sulaiman Foldbelt, and is situated in Prospectivity Zone I (F). The block has significant hydrocarbon potential, with the Sembar Formation as the primary source rock and reservoirs in the Pirkoh and Sui Limestone formations.

22. KALAT NORTH (2966-4)

The Kalat North Block (2499.96 sq. km) in Balochistan Basin, Pakistan, lies in Prospectivity Zone I(F) with estimated resources of 8,676 million barrels of oil and 78 trillion cubic feet of gas. Its petroleum system includes prolific source rocks like Sembar Shales, reservoirs such as Dunghan Limestone and Pab Sandstones, and effective seals like Ghazij and Murga Faqirzai shales. Structural traps and high seismic data resolution enhance its hydrocarbon potential.

23. AHMAD WAL (2965-1)

Discover the untapped energy potential of the Ahmad Wal Block in Balochistan, Pakistan—an area rich in geological promise and hydrocarbon reserves. Spanning 2,268 sq. km, this onshore block lies in the heart of the Balochistan Basin, home to an estimated 8,676 million barrels of oil and 78 trillion cubic feet of gas.

24. PADAG (2864-3)

The Padag Block, located in Balochistan’s Chagai, Nushki, and Kharan districts, covers 2,477.39 sq. km. It lies within the Balochistan Basin, with estimated resources of 8,676 million barrels of oil and 78 trillion cubic feet of gas. The block features favorable geological structures for hydrocarbon accumulation, including anticlinal folds and thrust faults.

25. CHAGAI (2864-4)

Spanning 2,474.17 sq. km in the resource-rich Balochistan Basin, the Chagai Block offers immense hydrocarbon potential. With an estimated 8,676 million barrels of oil and 78 trillion cubic feet of gas, this high-reward block is strategically located near proven reserves and thriving infrastructure. Its favorable geological structures, including anticlinal traps and thrust faults, provide a prime environment for hydrocarbon accumulation.

26. DALBANDIN (2864-5)

The Makran Fold-Belt in the Balochistan Basin offers immense hydrocarbon potential with its rich source rocks, Miocene sandstone reservoirs, and effective shale seals. Its unique geology, shaped by subduction and thrust faulting, creates ideal trapping conditions.

27. MERUI (2864-6)

The Merui Block, located in Chagai district, Balochistan, spans 2478.68 sq. km and holds estimated resources of 8,676 million barrels of oil and 78 trillion cubic feet of gas. The block’s geology includes compressional structures favorable for hydrocarbon accumulation.

28. MERUI WEST (2863-1)

The Merui West Block, covering 2491.45 sq. km in Chagai district, Balochistan, is part of the Balochistan Basin with estimated resources of 8,676 million barrels of oil and 78 trillion cubic feet of gas. It features compressional structures ideal for hydrocarbon accumulation.

29. NOKUNDI SOUTH (2763-7)

The Nokundi South Block, located in Chagai district, Balochistan, spans 2,158.75 sq. km. with estimated resources of 8,676 million barrels of oil and 78 trillion cubic feet of gas. Positioned in the Balochistan Basin, it features favorable anticlinal and thrust fault structures for hydrocarbon accumulation.

29. NOKUNDI (2862-2)

The Nokundi Block, located in Chagai district, Balochistan, spans 2,452.3 sq. km. Positioned in the Balochistan Basin, it features favorable anticlinal and thrust fault structures for hydrocarbon accumulation.

31. TOZGI (2861-1)

The Tozgi Block, spanning 2,427.58 sq. km in Chagai district, Balochistan, Pakistan, presents significant exploration potential in Prospectivity Zone I (F). The block is surrounded by the Nokundi block and is located within the Balochistan Basin, which holds substantial estimated resources of 8,676 million barrels of oil and 78 trillion cubic feet of gas. The area’s tectonic activity, including compressional structures and the Chaghai Magmatic Arc, provides favorable conditions for hydrocarbon accumulation.

Namibia Offshore Exploration and Lessons for Pakistan

Namibia Offshore Exploration and Lessons for Pakistan

Namibia Offshore Exploration and Lessons for Pakistan

Namibia’s offshore exploration history offers a remarkable case study for nations like Pakistan aiming to unlock their hydrocarbon potential. Both countries have faced challenges in establishing offshore oil and gas production despite promising geological settings. By examining Namibia’s approach and outcomes, Pakistan can identify actionable strategies to rejuvenate its offshore exploration efforts.

Namibia’s Offshore Exploration Journey: Key Phases and Insights

  1. Early Licensing Rounds (1969–1979)

Namibia initiated its offshore exploration in 1969, awarding eight blocks during the first licensing round. The Kudu Gas discovery (Kudu 9A-1) by Chevron, Regent, and SOEKOR marked the first gas find in the Orange Basin. However, UN sanctions in the late 1970s halted international participation, with rights transferred to the nascent national oil company, SWAKOR.

2. Renewed Exploration Efforts (1987–1990)

With collaboration from Halliburton, SWAKOR conducted seismic surveys and drilled additional wells (Kudu 9A-2 and 9A-3). Despite limited success, the groundwork was laid for modern exploration techniques and resource assessment.

  1. Post-Independence Licensing Rounds (1990s)
  • Namibia launched a series of licensing rounds from 1991 to 1999, awarding blocks to international players like Shell, Chevron, and Sasol.
  • Exploration activity surged with over 88,000 km of 2D seismic data collected and multiple exploratory wells drilled. While discoveries were elusive, critical insights into basin geology were gained.
  1. Open Licensing System and Modern Discoveries (1999–Present)

The adoption of an open licensing system in 1999 attracted numerous global operators, including Shell and TotalEnergies. Key outcomes included:

  • Enhanced seismic data acquisition with advanced 2D and 3D surveys.
  • Significant light oil discoveries in 2021/2022 by Shell Namibia (Graff-1) and TotalEnergies (Venus-1X.T1) in the Orange Basin.

 

Namibia Offshore Exploration and Lessons for Pakistan

Figure courtesy to NVENTURES.

Pakistan’s Offshore Exploration: Challenges and History

  1. Early Attempts (1960s–1980s)

Pakistan’s offshore exploration began in 1963, with Sun Oil drilling three wells in the Indus Delta. Subsequent efforts in the 1970s and 1980s by Wintershall, Marathon, and OGDCL revealed limited success. Key findings included gas shows in the Miocene and shaly source rocks beneath the Deccan volcanics.

  1. Exploration Stagnation (1990s–2010s)

Despite the discovery of gas at Pakcan-1, efforts by international operators such as Total Energies, Oxy, and PPL yielded no major breakthroughs. The most recent well, Kekra-1 (2019), drilled by ENI, failed to confirm commercially viable resources.

  1. Current State

Pakistan’s offshore remains underexplored, with technical challenges, governance issues, and a lack of consistent policy direction deterring investment.

Namibia Offshore Exploration and Lessons for Pakistan

Lessons from Namibia for Pakistan

  1. Persistence and Long-Term Vision
    Namibia’s success came after decades of effort and numerous dry wells. Pakistan must adopt a similar mindset, understanding that significant discoveries often require persistence over time.
  2. Investor-Friendly Policies
    Namibia’s transparent regulations and open licensing system encouraged international participation. Pakistan must revise its offshore policies to offer competitive fiscal terms, ensuring clarity and fairness for foreign investors.
  3. Data-Driven Exploration
    Namibia invested heavily in seismic data acquisition and geological modeling, reducing exploration risk. Pakistan should prioritize similar initiatives, including basin analog modeling and leveraging advanced seismic technologies.
  4. Strategic Partnerships
    Collaboration with supermajors like Shell and TotalEnergies brought cutting-edge technology and expertise to Namibia. Pakistan should foster partnerships with global leaders in offshore exploration.
  5. Political and Economic Stability
    A stable environment is crucial for attracting and retaining investors. Pakistan must focus on creating a favorable business climate, addressing governance issues, and ensuring policy continuity.
  6. Technology and Innovation
    Namibia’s adoption of advanced 2D and 3D seismic methods proved pivotal. Pakistan should invest in modern exploration technologies to improve success rates.

Conclusion: A Path Forward for Pakistan

 Namibia’s offshore journey illustrates the power of resilience, innovation, and collaboration in unlocking hydrocarbon potential. By drawing inspiration from Namibia’s approach, Pakistan can chart a path toward energy security.

Key steps include fostering an investor-friendly ecosystem, prioritizing data acquisition, and engaging with international experts. With sustained efforts and strategic planning, Pakistan’s offshore potential can transform into a vital resource for the nation’s energy needs.

Pakistan's Oil & Gas Investment and Regulations

Pakistan’s Oil & Gas Investment and Regulations

The oil and gas industry in Pakistan offers a promising environment for energy companies. Pakistan has set up strategic areas, rules, and benefits for companies that explore and produce oil and gas (E&P). These policies are designed to make things easier and to bring in more foreign money. Let’s look at the different areas, how companies get permission to work there, and the good deals available in Pakistan’s oil and gas industry.

Zoning for Onshore and Offshore Oil and Gas Exploration

Pakistan has divided its onshore and offshore areas into different categories based on the geological risks and the amount of investment needed:

  1. Onshore Zones:
    • ZONE-I and ZONE-I(F): High-risk, high-cost areas with significant geological challenges.
    • ZONE-II: Moderate risk with high to medium cost requirements.
    • ZONE-III: Low risk and low cost, making it more accessible for E&P activities.
  2. Offshore Zones:
    • Shallow (up to 200m): Easier to access with lower risks.
    • Deep (200-1000 m): Moderate accessibility and higher technical challenges.
    • Ultra Deep (Beyond 1000m): High-risk, high-investment areas with potentially large rewards.

This organized zoning helps companies assess the balance between risk and reward in each area, guiding their strategies according to geological and financial considerations.

Concession Award Process for E&P Rights

Pakistan’s upstream sector provides three procedures for granting E&P rights:

  1. Competitive Bidding:

Petroleum Exploration Licences are given for both land and sea areas. Companies try to win these by using Work Units, a new idea that lets them change their plans to get the best results.

  1. Government-to-Government Agreements:

Companies that work closely with the government can get the right to explore new areas without having to compete with others. This helps build strong relationships between the government and these companies, and it also benefits both sides.

  1. Reconnaissance Permits:

For businesses that conduct research and surveys, non-exclusive licenses can be acquired through direct talks, allowing them to gather data from multiple sources.

Invitation to Bid: Transparency in the Bidding Process

To guarantee a fair and clear process, the Directorate General of Petroleum Concessions (DGPC) publishes public invitations for companies to submit their bids. These bids are open for at least 60 days, giving enough time for interested companies to join. The process favors companies that offer the most Work Units. If several companies offer the same amount, they can submit new bids to make the competition more equal.

Agreement Execution for E&P Activities

The DGPC helps make it easy and fast to sign Petroleum Concession Agreements (PCA) or Production Sharing Agreements (PSA) using standard templates. This organized process reduces paperwork and delays, so companies can start their exploration work as soon as possible.

Gas Market Access and Infrastructure

E&P companies have permission to build and run pipelines for both local use and exporting. The gas market works with an open-access system, where companies with solid plans get priority. The building of pipelines follows the government’s energy plan, and the prices are controlled by the right groups, making sure companies make money while also looking out for the public’s needs.

Investment Incentives: A Favorable Onshore Package

Pakistan’s onshore oil and gas exploration package has several benefits to encourage foreign investment:

Royalties: A standard 12.5% royalty on the value of petroleum produced is applied. This gives the government a fair share while keeping costs reasonable for companies.

Corporate Income Tax: The tax on profits is capped at 40%, and royalty payments can be deducted as expenses. This makes Pakistan a good choice for large oil and gas companies.

Local Partnership Requirement: Foreign companies must partner with local firms, like GHPL. This helps local businesses grow and allows international expertise to enter the market.

Production Bonuses and Work Units: Companies get bonuses based on how much they produce, and Work Units allow for flexible work requirements. This helps companies adjust their plans based on the actual conditions they find.

Import Duties and Taxes

The rules for taxes provide significant benefits for companies doing oil and gas work:

  • Imported equipment that isn’t made locally has a 5% import tax, while locally made items have a 10% tax, and wellhead equipment has a 15% tax.
  • Companies that provide technical services to oil and gas firms don’t have to pay import duties, sales tax, or license fees, which lowers their costs.

Social Welfare and Training Contributions

Acknowledging the significance of community well-being, the rules require oil and gas companies to make social and training payments:

  • Training Payments: These companies pay yearly, with $25,000 during the search for oil and gas and $50,000 during the building phase.
  • Social Welfare Payments: Depending on how much oil and gas they produce, companies fund local welfare projects, helping communities in areas where they search for and produce oil and gas.

Key Takeaways

Pakistan’s oil and gas industry is set up to bring in investments while considering economic, environmental, and social needs. By using a system of zones and competitive offers, along with government help and benefits, the country makes it easier and more profitable for companies to find and produce oil and gas.

For more details, refer to the Petroleum (Exploration and Production) Policy 2012.

Overview of Offshore Exploration in Pakistan

Overview of Offshore Exploration in Pakistan

Offshore exploration in Pakistan began in 1963, with Sun drilling three wells in the Indus Delta’s shallow waters: Dhabo Creek-01, Patiani Creek-01, and Korangi Creek-01. Subsequent attempts included Wintershall’s Indus Marine A-1 and B-1 wells in 1972, and Indus Marine C-1 in 1975. In 1976, Marathon drilled the Jal Pari 1A well, which encountered high pressure and forced a halt in drilling. Later, Husky Energy’s 1978 Karachi South-1 well revealed shaly source rocks in the Mughalkot Formation beneath the Deccan volcanic series, though the reservoir quality was poor. In 1985, OGDCL’s Pakcan-1 discovered gas in the Miocene; however, further efforts, such as Oxy’s 1989 Sadaf-1, yielded no significant results. The 1990s and 2000s saw additional wells by Canterbury, OPC, PPL, and Total Energies, including Pasni-1 and Gwadar-1, yet these too were largely unproductive. The most recent exploration, Kekra-1 by ENI in 2019, also yielded no viable resources. This outcome is likely due to a lack of hydrocarbon charge, attributed to the absence of Early Cretaceous source rocks in the area. No shallow source rocks could be established, despite some occurrences of thermogenic gas.

Overview of Offshore Exploration in Pakistan

Geological Influence of Plate Collision

The collision between the Indian Plate and Eurasian Plate created the Himalayas and initiated significant erosion, transporting sediments southward to form the Indus Fan in the Arabian Sea, one of the world’s largest sedimentary fans. The uplift accelerated erosion, feeding massive sediment into the Arabian Sea and building the Indus Fan. Following the continental collision between the Indian and Eurasian plates in the Oligocene, the influx of clastic sediments buried Paleogene carbonates in the offshore Indus Basin. This process intensified from the mid-Miocene onward, with uplifting and tilting of turbidites east of Murray Ridge. The Upper Oligocene to Recent Indus Fan clastics now form a thick succession of channel-levee systems.

Hydrocarbon Potential and Challenges

Data from offshore wells has yet to show evidence of significant Tertiary-age source rocks, and deeper sections remain largely unassessed. The thick Eocene to Pliocene deposits in the Indus Fan have shifted initial oil-rich zones into the gas window, creating migration barriers due to impermeable basal shale layers. Future drilling could reveal if hydrocarbons bypass these barriers through fault systems intersecting source rock. Findings from deepwater wells, such as Pak G2-1, indicate immature rocks for hydrocarbon generation. If the drilled sections are extrapolated to Paleocene Ranikot Formation, Ro levels around 0.4-0.5% suggesting early maturation for oil generation but lack of data and unconformity between Upper Miocene and Upper Eocene make the accurate predictions of thermal maturity very hard as all readings of present maturity are above unconformity. That’s why the Paleocene hydrocarbon potential might be overstated given limited data, as regional modeling suggests Paleocene source rocks may have become post-mature by the Oligocene, potentially charging Miocene and younger reservoirs via shallower source rocks would have occurred.

In contrast, wells like Karachi South A-1 and Pakcan-1 (Paleocene-Eocene to Mid-Miocene intervals) remain within the hydrocarbon window. Although Pakcan-1 confirms thermogenic gas, data limitations impede a complete source rock assessment across the basin. Ghazij Formation modeling based on Karachi South A-1 suggests it reaches the peak oil window (Figure-01) and about to approach the gas window.

Exploration Outlook and Economic Incentives

In the Lower Indus Basin, the Lower Cretaceous Sembar and Goru formations serve as primary source intervals; however, their offshore extension places them beneath Deccan volcanic rocks, rendering them less viable for the Indus Fan play. Offshore, rapid sedimentation has lowered geothermal gradients, reducing the likelihood of source rock maturation to depths comparable to onshore zones.

Seismic interpretation reveals laminated Deccan basalts within Upper Cretaceous–Paleocene marine-facies strata in the southeastern basin, adjacent to the Somanath Ridge and Saurashtra High (Khurram et al., 2019). Conversely, the northwestern basin, with minimal basalt influence and proximity to the Murray Ridge strike-slip fault zone, may offer potential for oil and gas exploration. With developed fault structures near Murray Ridge, the northwestern region is promising, presenting opportunities to uncover established Cretaceous plays.

To reduce import dependency, the government has introduced favorable terms, including a gas price of US$7-9/MMBtu and contractor profit shares up to 95%, aiming to attract foreign investment. While exploration results have been limited, recent multi-year surveys suggest offshore Pakistan still holds potential.

Offshore Exploration in Pakistan

Reference

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