Pakistan's Vast Oil Reserves: oil Locations and Cost Breakdown and affects on India

US President Donald Trump says that a deal has been reached between the US and Pakistan to extract Pakistan’s vast oil reserves.

In a message released on his social media website ‘Truth Social’ last week, the US president said that Washington has reached an agreement with Islamabad, under which the two countries will work together to convert Pakistan’s vast oil reserves into recoverable reserves.

He said that currently, “we are in the process of selecting the oil company that will lead this partnership.” He added that “who knows, maybe one day they will be selling oil to India.”

According to data released by Pakistan Petroleum Information Services, domestic oil production fell by 11 percent in the first nine months of the current fiscal year.

According to the data, production in Pakistan’s major oil and gas fields decreased during this period. In these fields, apart from the major fields like Kadapur Field, Sui Field, Uch Field, Mari Field, other fields also recorded a decrease. The local production of major oil and gas exploration and production companies operating in Pakistan also recorded a decrease.

In such a situation, after this statement was made by the US President, many users were seen asking the question, where are the reserves that are being talked about? Also, in which areas oil exploration was done in Pakistan and can the announcement of US partnership in this sector affect China's investment in Pakistan?




many oil reserves does Pakistan have?



Various companies are working in the oil exploration sector in Pakistan, but no significant increase has been seen in the exploration and production of oil in the country in the last few decades.

Pakistan's Petroleum Minister Ali Pervez Malik says that international studies have proven that Pakistan has vast reserves of oil and gas.

On the other hand, according to data released by the Pakistan Petroleum Information Services, the country's oil reserves were up to 23.8 million barrels as of December 2024.

Muhammad Wasi Khan, an energy expert who has held senior positions in several oil companies, said that the oil produced locally in Pakistan meets only 10 to 15 percent of the country's needs, while the rest 80 to 85 percent is imported from abroad.

He said that according to an assessment by the US Energy Information Administration, Pakistan has petroleum reserves of up to nine billion barrels, but according to him, they cannot be considered proven reserves until they become commercially viable.

Muhammad Wasi said that past efforts to explore oil in Pakistan have not been very successful due to lack of investment in this work and the required technology. He said that under the announcement made by the US President, it appears that the US government will ask a major oil company to work to extract oil reserves in Pakistan.




Where is oil exploration taking place in Pakistan?


Pakistan’s Petroleum Minister Ali Pervez Malik said that Pakistan has invited bids for auction in different blocks for offshore oil and gas exploration.

Speaking to local media, he said that auctions will be held for drilling wells in two blocks for offshore oil and gas exploration.

The Petroleum Minister said that tenders have been issued for the auction of 26 blocks in the Indus Basin and 14 blocks in the Makran Basin for offshore oil and gas exploration.

He said that domestic and international companies will submit expressions of interest or expressions of interest by October this year. Ali Pervez Malik said that companies from the United States, Turkey, China and Kuwait want to come and work in Pakistan.

The Petroleum Minister said that 33 blocks should be auctioned on those offshore and a Turkish company wants to invest in Pakistan.

Pakistan has not yet achieved significant success in offshore oil and gas exploration, and the country's production depends on these reserves found on the surface.

Currently, oil exploration is taking place in all four provinces of the country. According to experts in this field, the most work in this regard is being done in Sindh province.

According to the Pakistan Credit Rating Agency's report on oil and gas exploration and production in Pakistan, the total number of oil and gas wells in Sindh is 247, in Punjab this number is 33, while in Khyber Pakhtunkhwa 15 and in Balochistan four wells are being worked on.

According to the report, work has been completed on many of these wells, that is, oil and gas have been extracted and are now dry, while work is underway on others.

According to Dr. Aafia, an energy expert at the Pakistan Institute of Development Economics, technically, nothing special is being done in Balochistan and Khyber Pakhtunkhwa at the moment, the main reason being security concerns, tax and revenue structures, etc.

She said that the provinces can be asked to fulfill their security responsibilities by giving them a higher share in revenue sharing.

In Pakistan, the Oil and Gas Development Company discovered large reserves of gas and oil in Betni FR area of Lakki Marwat district of Khyber Pakhtunkhwa in September 2021 and the Mari Petroleum Company in June 2022 in Tehsil Shiva in Bannu West Block located in North Waziristan, which was the last major discovery in this regard.

Parliamentary Secretary of the Petroleum Division Mian Khan Bugti said that a lot of work is currently being done in Sindh, while there are oil reserves in Balochistan and Khyber Pakhtunkhwa, which the government is working to extract. Regarding US President Trump's announcement, he said that it is too early to say anything about it, but he described the statement as a positive development for the country's oil sector.



any American company worked on devellrese in Pakistan in the past?

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  Wasi Khan said that this development should be seen in a positive trade context. Increased international cooperation in Pakistan’s energy sector could promote more investment, modern technology and healthy competition.
  
  “China is a reliable and long-standing partner of Pakistan and the involvement of American companies does not affect this relationship,” he said. “In fact, it can complement existing Chinese investment as it will help diversify opportunities.”
  
  “This prospect could be equally beneficial for China. As major projects move forward, Chinese companies, which have a strong presence in Pakistan’s infrastructure and energy sectors, could play new roles in sectors such as construction, engineering or services.”
  
  Geopolitical economy expert Zahid Hussain said that the US announcement has just come out and the details of what has been agreed upon are yet to be revealed. However, he says that this American announcement will not have any direct impact on China’s investment and projects in Pakistan, but it may have indirect implications.
  
  Mian Khan Bugti said in this regard that China has separate economic cooperation and projects with Pakistan, and similarly, Pakistan also has trade and economic relations with other countries of the world, which have their own scope.
  
  He rejected the possibility that the announcement of the US to explore oil reserves in Pakistan would have any impact on China’s projects in Pakistan.
  
  
  
  

Reaction in Pakistan and India

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  After this announcement by Trump, Pakistani and Indian users are expressing their opinions.
  
  A user, Hussain Nadeem, said, “Pakistan has just found out that it has oil reserves. Thanks to President Trump’s tweet.” This is actually a comedy now.
  
  Analyst Michael Kugelman wrote on the social networking site X, “US President Donald Trump has announced that Pakistan and the US have signed an agreement to develop Pakistan’s vast oil reserves. In recent weeks, Pakistan has highlighted the importance of its growing oil reserves estimates.”
  
  Faisal Ranjha wrote, “A trade deal has been reached between the US and Pakistan. The US will help Pakistan explore its vast oil reserves and one day export them to India. US President Trump is making fun of the people of India.”
  
  Former Indian Foreign Secretary Kanwal Sibal expressed his displeasure at the announcement, writing that the statement “even more clearly reveals Trump’s mentality.” They clearly want India to accept their demands and accept the decision of 25% tariffs and penalties.
  
  He added that “America’s happiness has to be built on the pain of others and Trump will decide what ‘happiness’ he deserves.”
  
  On the US President’s statement regarding Pakistan, he said that “the talk of American investment in Pakistan’s oil reserves is contrary to his insistence that other countries invest in America.”
  
  “The US is already the largest oil producer and it has production interests in major oil producing countries, so what interest does it have in exploring for oil in Pakistan?” Even China, a major importer of oil and a major importer of oil, has not announced any plans to produce oil in Pakistan.’
  
  Kanwal Sibal termed the mention of India in his message as sarcasm and said, ‘Why is this ridiculous joke being made about Pakistan one day selling oil to India when India potentially has access to major suppliers in the region, including Iran?’
  
  Another Indian user wrote on the handle Constable Gardner, ‘Not really… as everyone now knows, Trump is just trying to push all the buttons to negotiate a trade deal. Remember, we are a land of mind-boggling. We can easily get rid of it.’
  
  A Pakistani user, Fareed, also had a similar view. He wrote on X, ‘I think Trump is doing all this (the lie of non-existent oil reserves) to pressure India. Apparently, they feel that with this mindset they can get immediate results.’
  
  Indian journalist Ishan Prakash said on social media site X, ‘It seems that this statement is more to annoy India than to actually build new oil fields in Pakistan.