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In a major development, Turkey and Pakistan have signed a new deal to jointly explore offshore oil and gas reserves in Pakistan’s territorial waters.
The agreement was sealed at the 2025 Pakistan Minerals Investment Forum in Islamabad and involves a joint bid on 40 offshore blocks.
The exploration will focus on the Makran and Indus basins, where a recent geological survey identified large reserves.
Turkey’s state-owned oil company TPAO will collaborate with Mari Energies, Oil and Gas Development Company Limited (OGDCL), and Pakistan Petroleum Limited (PPL) in the bidding process that started in February.
The findings from a three-year geological study suggest that Pakistan may hold the world’s fourth-largest offshore oil and gas reserves, following Venezuela, Saudi Arabia, and Canada.
If proven, this could be a game-changer for Pakistan, potentially cutting its heavy reliance on imported energy.
READ: Crude oil prices hit 5-year low amid trade tensions
Despite this potential, Pakistan has historically struggled to attract major foreign investment in the energy sector.
In 2023, Shell exited Pakistan by selling its operations to Saudi Aramco, and most offshore blocks went without bids in earlier auctions.
However, officials remain hopeful the Turkey-Pakistan partnership will help restore confidence and open new doors for investment.
Energy Minister Mohammad Ali believes that Pakistan holds 235 trillion cubic feet of gas reserves, while estimating a $25 – 30 billion investment could unlock 10 percent of these reserves over ten years, easing the country’s energy woes.
Pakistan’s maritime zones are also rich in minerals like cobalt, nickel, and rare earth elements.
Officials are pushing a “blue economy” strategy, highlighting marine resources, ecotourism, and biotechnology for long-term growth.
Currently, Pakistan lacks the deep-sea mining technology needed to tap into these resources.
Experts say that attracting large-scale investment will require regulatory reforms, better governance, and improved investor protections.
