ISLAMABAD – Pakistan is making efforts as renewed oil exploration efforts gain momentum across the country, attracting international attention and raising hopes of ending nation’s dependency on imported oil.
For prolonged period, Pakistan struggled to make gains in oil exploration. Despite abundant geological potential, the South Asian nation currently meets only 10–15percent of its oil needs domestically, importing 80–85% from abroad.
According to the Pakistan Petroleum Information Services, as of December 2024, proven oil reserves stood at 23.8 million barrels, a fraction of the 900 million barrels suggested by the 2015 US Energy Information Administration (EIA) report. However, experts warn that these estimates cannot be considered proven until the reserves are commercially viable.
Pakistan has not achieved major success in oil exploration yet, but it has not given up. Offshore efforts like Kekra-1 and Kekra-2 in 2019 failed, research by the American company later revealed the possibility of massive offshore reserves.
In response, the Pakistani government introduced offshore petroleum rules and a model production sharing agreement, culminating in a bidding process launched in January 2025. The response was encouraging, 23 companies, mostly local, including one Turkish firm, are now participating in exploration efforts.
The major exploration is being held in Sindh, where 247 oil and gas wells are active. Punjab has 33 wells, KP 15, and Balochistan 4 wells. Some wells are now dry after successful extraction, while work continues on others. Energy expert at Pakistan Institute of Development Economics, explains that limited activity in Balochistan and KP is due to security challenges and complex tax and revenue-sharing structures.
Recent major discoveries include oil and gas in Laki Marwat, KP by Oil & Gas Development Company in 2021, and Bannu West Block, North Waziristan, by Mari Petroleum Company in 2022.
The sector now gained global attention. US President Donald Trump announced that American companies could soon participate in oil extraction in Pakistan, signaling growing international interest. Experts suggest that this move could complement ongoing Chinese investments, boosting technology transfer, modern exploration techniques, and competitiveness.
“China has been a reliable partner for Pakistan, and US involvement will not affect these relations. Instead, it could create diversified opportunities. The success in offshore exploration could significantly reduce Pakistan’s dependence on imported oil.
Government officials lately revealed that major work is ongoing in Sindh, while reserves in Balochistan and northern regions are being developed by the government. He called the recent international interest a “positive development” for Pakistan’s energy sector.
Lately, American companies played a key role in the early development of Pakistan’s oil and gas sector, though their presence has declined over time. Analysts say renewed international participation could revive exploration activities, bringing in critical technology, investment, and expertise.
With 23 companies now actively involved, government-backed incentives, and renewed international cooperation, Pakistan is poised for a potentially transformative breakthrough in oil exploration. If successful, these efforts could not only meet domestic demand but also position the country as a regional energy hub.
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