Pakistan and Turkiye have signed five new agreements covering oil and gas exploration, mining, and power sector equity, with Turkish Petroleum set to expand its presence through offshore and onshore projects in Pakistan.
New MoUs Lay Groundwork for Deeper Energy and Mining Cooperation
Five memoranda of understanding and deeds of assignment have been signed between Pakistan and Turkiye that brings a new dimension into the relationship between the two countries in the sphere of energy and mining. The agreements that were signed in Islamabad and attended by the Prime Minister, Shehbaz Sharif, open the way to the increased cooperation in the oil and gas exploration, mining and equity contribution to the power sector of Pakistan.
The transactions are on three offshore, and two onshore petroleum fields: the Eastern Offshore Indus-C, Ziarat North Block, Sukhpur-II Block, Deep C Block and Offshore Deep F Block. The presence of Turkish Petroleum in offshore and onshore exploration will now be a pointer to interest in the long term of the untapped potential of Pakistan and its hydrocarbon and mineral reserves.
Prime Minister Highlights Strategic Ties and Trade Ambitions
Several months ago, during the signing ceremony, Prime Minister Shehbaz Sharif emphasized that Pakistan and Turkiye had a historic and brotherly relationship. He remembered the common ambition that he had made with Turkish President Recep Tayyip Erdogan in 2022 to increase bilateral trade to 5 billion dollars in three years.
The most recent data provided at the meeting shows that the trade between the two countries increased to 1.4 billion in 2024 compared to 1.1 billion in 2021. Sharif said he was optimistic that further collaboration in energy, mining and infrastructure would see both parties head towards their goal of a $5 billion goal and also contribute to the overall economic revival of Pakistan.
Turkish Petroleum to Open Islamabad Office and Explore New Ventures
The Turkish delegation, which is visiting and headed by the Energy and Natural Resources Minister Alparslan Bayraktar, declared that the Turkish Petroleum will establish a special office in Islamabad in the current month. The office will be manned with both the Turkish and local employees and it is anticipated to act as a planning, coordination and development of new projects hub in the energy sector in Pakistan.
Bayraktar stated that Turkiye will continue to expand its presence with joint ventures in the exploration of oil and gas and energy infrastructure and mining. He observed that the collective trade target of 5 billion dollars will not be attained without making the substantial contributions of energy, minerals and related services.
The two also decided to explore the establishment of a joint purchasing company of petroleum that would not only enable them to obtain better prices and somewhat reliable supplies to Pakistan but also allow Turkish associates to have a reliable destination to get their products.
Pakistan Showcases Upstream and Mining Opportunities to Turkish Investors
On the visit, managing directors of major energy companies of Pakistan, including Mari Energies, Oil and Gas Development Company Limited (OGDCL) and Pakistan Petroleum Limited (PPL), informed the Turkish delegation of ongoing and planned projects.
They emphasized the prospects of Turkish colleagues on the traditional oil and gas market, and on the shale and tight gas production, where the highest technology and foreign investment are highly demanded. The mining and minerals were also touted as a field that has great untapped potential especially in terms of joint ventures and technology sharing deals in exploration, processing and value-added exports.
Power Sector Privatization Opens Door for Turkish Private Investors
The Power Minister of Pakistan Awais Leghari took the opportunity to encourage Turkish investors in the privatization of three Pakistan first electricity distribution companies that will take place. In the short term, expressions of interest in these DISCOs are likely to be pursued and this will present new avenues to foreign involvement in the Pakistani power market.
According to Leghari, having experience in the field of generation, transmission and distribution, Turkish companies are in a position to join the reforms to reduce the number of losses, enhance the quality of services and entice new capital inflow in the energy industry.
High-Level Engagement Underscores Strategic Partnership
The accords were concluded when a Turkish delegation of the high level headed by Minister Alparslan Bayraktar made the visit. In addition to meeting Prime Minister Shehbaz Sharif, the delegation discussed the strategic value that both parties place on the cooperation with the Chief of Army Staff Field Marshal Asim Munir, Petroleum Minister Ali Pervaiz Malik and Power Minister Awais Leghari.
They also agreed that the Pakistani ministerial delegation will visit Turkiye so that additional collaboration in energy, mining and suchlike areas can be discussed. Authorities on both ends affirm that these new MoUs and follow-ups are merely a further item in the quest to realise full economic potential of Pakistan-Turkiye relations to go beyond nicey-nee gestures to actual projects, joint ventures and long term investment.
