By Staff Reporter
ISLAMABAD: The government provisionally awarded all 23 offshore exploration blocks that received bids in its first offshore licensing round since 2007, with state-backed Mari Energies Ltd. securing stakes in every block and operatorship in 18 of them, according to the Petroleum Division and company statements.
The awards, covering 53,510 square kilometers in the Indus and Makran basins off Sindh and Balochistan, remain subject to execution of production sharing agreements, grant of exploration licences, signing of joint operating agreements and other formalities.
Mari Energies, a joint venture between the Fauji Foundation and government entities, will hold 100% interest and operatorship in 10 blocks and majority stakes with operatorship in eight others. It will be a non-operating partner in the remaining five.
Pakistan Petroleum Ltd., the country’s oldest producer, secured operatorship in six blocks and minority interests in two others. Oil & Gas Development Co., the largest by production, was awarded operatorship in two blocks and joint-venture stakes in six. Prime Global Energies Pvt. Ltd., the only private-sector winner, obtained operatorship of one block with a 31% stake; Mari, PPL and OGDCL each took 23%.
The Petroleum Division said companies committed 4,427 work units in the initial three-year Phase-1 period, equivalent to roughly $80 million, mainly for geophysical and geological studies and seismic acquisition, processing and interpretation. If the results justify drilling in Phase-2, total investment could reach $750 million to $1 billion, the ministry added.
The government received the 23 bids on Oct. 31 for the 40 blocks offered in the Offshore Bid Round 2025, which was launched in January after an 18-year hiatus. A basin study by DeGolyer & MacNaughton had earlier highlighted significant yet-to-find hydrocarbon potential in both basins.
Previous offshore campaigns by international majors, including a high-profile ExxonMobil-led consortium that drilled the Kekra-1 well about five years ago, ended without commercial discoveries despite encouraging data.
The ministry said its strategy of offering blocks in both the Indus and Makran basins simultaneously had paid off. It developed a new model production sharing agreement and promulgated Offshore Petroleum Rules ahead of the round to boost transparency and competitiveness. After local companies complete G&G work and finalise drilling plans, the government intends to invite global majors, several of which are already evaluating data and holding discussions with Pakistani firms, to participate in the next exploration phase, the Petroleum Division said.
Copyright © 2021 Independent Pakistan | All rights reserved
