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Thursday, April 24, 2025

Turkiye and Pakistan usher in strategic Energy Alliance with Offshore Oil and Gas deal

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Türkiye and Pakistan have signed a milestone agreement to jointly pursue offshore oil and gas exploration in Pakistani waters, marking a significant step in expanding Ankara’s global energy footprint and strengthening bilateral cooperation between the two allied nations.

The accord was finalized on the sidelines of the Pakistan Minerals Investment Forum 2025 (PMIF25) in Islamabad. It brings together Türkiye’s state-owned Turkish Petroleum Corporation (TPAO) and Pakistan’s national energy giants — Oil and Gas Development Company Limited (OGDCL), Mari Energies Limited, and Pakistan Petroleum Limited (PPL) — in a joint bidding initiative aimed at unlocking the country’s vast offshore hydrocarbon reserves.

“This step will deepen the strategic energy partnership between Türkiye and Pakistan and will also be an important threshold in terms of regional energy security,” said Türkiye’s Minister of Energy and Natural Resources Alparslan Bayraktar, who witnessed the signing alongside Pakistan’s Federal Minister for Petroleum Ali Pervaiz Malik.

40 Offshore Blocks up for bids

Pakistan’s government has announced an offshore bidding round set for June 30, 2025, offering 40 exploration blocks — 14 in the Makran Basin and 26 in the Indus Basin — to international investors.

The agreement with Türkiye is among the first international responses to this invitation, which aims to attract foreign direct investment (FDI) and inject advanced technological expertise into Pakistan’s upstream energy sector.

Pakistan Turkiye oil and gas exploration
MoU was signed between Turkish Petroleum Corporation (TPAO) and Pakistan’s leading state-owned enterprises, Oil and Gas Development Company Limited (OGDCL), Mari Energies Ltd, and Pakistan Petroleum Limited (PPL), in Islamabad on April 8, 2025. (Image: OGDCL)

“We believe this strategic collaboration will bring much-needed FDI to Pakistan and pave the way for sharing and deploying international technologies, expertise and skillsets to explore and exploit the untapped potential of Pakistan’s offshore region,” said a joint statement from the Pakistani partner companies.

Expanding Türkiye’s Energy Footprint

For Türkiye, this is the latest chapter in a larger story — one about expanding its energy presence far beyond its own borders.

The collaboration with Pakistani oil and gas companies reflects Türkiye’s broader strategic ambitions to extend its energy exploration and production operations beyond national borders. Since launching a resource exploration strategy in 2016, Türkiye has significantly boosted domestic output and now seeks greater global integration.

“In the Gabar region, oil production has reached 80,000 barrels per day, and from the Black Sea reserves, we are producing 8.5 million cubic meters of natural gas daily,” Bayraktar told Anadolu Agency. “We set out with the goal of leaving no unexplored land in Türkiye. We’re now beginning to see the results of this strategy.”

The goal, according to Bayraktar, is clear: to secure new resources, strengthen alliances, and position Türkiye as a serious player on the global energy stage.

In parallel with its push into Pakistan, ürkiye Petrolleri Anonim Ortaklığı (TPAO) is conducting seismic exploration in Somalia — expected to conclude by May — under an agreement signed with the East African nation last year. Similar projects are ongoing in Libya, Iraq, Niger, and across the Middle East and Central Asia, according to the Turkish energy ministry.

Energy Diplomacy and Defense Engagement

The Islamabad agreement builds on recent high-level diplomacy. In February 2025, Turkish President Recep Tayyip Erdoğan visited Pakistan, where multiple energy cooperation accords were signed. Bayraktar noted this latest deal as “the first concrete project” emerging from those discussions.

“We are taking this a step further. Not only offshore, but we have also reached an agreement to collaborate on onshore fields that will be developed in the very near future,” Bayraktar added.

During his visit, Bayraktar held bilateral meetings with Pakistani ministers responsible for energy and power, as well as with Prime Minister Shehbaz Sharif and General Asim Munir, Chief of the Army Staff — underlining the multifaceted nature of Türkiye–Pakistan cooperation that spans energy, diplomacy, and defense.

Copper, Gold — and new horizons for Pakistan

Energy wasn’t the only headline at Pakistan Minerals Investment Forum 2025. National Resources Limited (NRL), a Pakistani firm backed by industrial powerhouses, revealed the discovery of major copper and gold reserves in Chagai, Balochistan — a region long known for its untapped mineral wealth.

NRL’s CEO Muhammad Ali Tabba shared that the project’s advanced drilling phase will begin in May 2025, supported by a $100 million private exploration fund. And while the numbers were impressive, Tabba stressed another important aspect: inclusion. “NRL considers indigenous populations as key stakeholders,” he said. “Our current ratio of local employment is above 90%.”

Strategic Implications

This surge in international interest — spearheaded by Türkiye and Saudi Arabia — positions Pakistan as a regional hub for resource development, while reinforcing Ankara’s vision of becoming a geopolitical energy player spanning Europe, Asia, and Africa.

The Türkiye–Pakistan partnership could be a game-changer — not just for the two countries involved, but for the region as a whole. As energy competition intensifies and geopolitical lines shift, this joint offshore venture signals a willingness to work together in building resilience, sharing innovation, and unlocking new reserves.

Bayraktar concluded, “We came here with the goal of advancing the friendship between Türkiye and Pakistan, set forth by our president, through business relations, trade, and increasing investments — and to take concrete steps toward that vision.”

With bids set to be submitted by June, the world will be watching as these two countries move from strategy to exploration — and potentially, to discovery.

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