Pakistan and Turkey sign energy and mining deals worth over $300m
Pakistan and Turkey on Tuesday finalised a series of gas and mining agreements expected to attract more than $300 million in investment, mainly for offshore exploration activities. Officials said the estimated investment reflects the financial commitment required to develop the newly awarded blocks.
During his visit to Pakistan, Turkish Energy Minister Alparslan Bayraktar said Turkey plans to expand joint ventures with Pakistan in oil and gas exploration, energy infrastructure, and mining. He noted that deeper collaboration in these sectors would support the shared target of $5 billion in bilateral trade.
Prime Minister Shehbaz Sharif and Minister Bayraktar witnessed the signing of several agreements, including the Deed of Assignment for the Eastern Offshore Indus-C block, and petroleum concession agreements for the Ziarat North, Sukhpur-II, Deep-C, and Deep-F blocks.
Federal Petroleum Minister Ali Pervaiz Malik welcomed the deals, calling them a step towards strengthening the strategic energy partnership between the two countries. He said the agreements would bring new investment to Pakistan’s energy sector and help deepen bilateral ties.
Earlier, Malik and Bayraktar held delegation-level talks to explore broader cooperation in the oil, gas, and mining sectors. Malik said Pakistan attaches great importance to its relations with Turkey and that Prime Minister Shehbaz Sharif values his close ties with President Recep Tayyip Erdoğan.
Officials from Mari Energies, OGDCL, and Pakistan Petroleum Limited delivered presentations on their ongoing and planned projects, outlining opportunities for Turkish participation in oil and gas exploration and mining. OGDCL briefed the delegation on its role in the Reko Diq project, Pakistan’s first shale gas pilot initiative, and work in tight gas fields. The company invited Turkish partners to join its unconventional hydrocarbon programme.
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The two ministers agreed to open a Turkish Petroleum office in Islamabad this month, staffed by Turkish and local employees. They also discussed creating a joint trading company for petroleum procurement to meet future energy requirements.
Agreements Signed
Indus Eastern Offshore Block C
Assignment of a 25% working interest and operatorship from Pakistan Petroleum Limited to Turkish Petroleum Overseas Company, with Mari Energies and OGDCL as joint-venture partners.
Offshore Deep-F Block
Grant of an exploration licence to Mari Energies as operator, along with Turkish Petroleum Overseas Company and Fatima Petroleum.
Offshore Deep-C Block
Grant of an exploration licence to Mari Energies as operator, with Turkish Petroleum Overseas Company and Fatima Petroleum.
Sukhpur-II Block
Grant of an onshore exploration licence to Prime Pakistan as operator, along with OGDCL, Mari Petroleum, and Turkish Petroleum Overseas Company.
Ziarat North Block
Grant of an onshore exploration licence to Mari Petroleum as operator, with OGDCL, Pakistan Petroleum Limited, Turkish Petroleum Overseas Company, and GHPL.
Turkish Investors Show Interest in Power Sector
Turkish investors have also expressed strong interest in Pakistan’s upcoming power sector privatisation programme. Federal Power Minister Awais Leghari said Pakistan is preparing to offer its first three distribution companies for privatisation, and an Expression of Interest for investors is ready.
Leghari appreciated Turkey’s support in training Pakistani power-sector professionals and highlighted the potential for further investment. He said Pakistan is developing an Integrated Energy Plan and seeks Turkey’s assistance, given its successful experience in the sector.
Bayraktar said Turkish companies are closely monitoring Pakistan’s privatisation process and hope to participate actively. He agreed to hold roadshows in Turkey and offered the Turkish Investment Forum to support Pakistan’s efforts. He added that Turkey already invests heavily in Pakistan in sectors including mining, which is closely linked to the power industry.
