Pakistan and Turkey are set to sign multi-billion dollar deals

Turkiye is set to emerge as a key partner for Pakistani companies in the energy sector as the two countries are set to sign multi-billion dollar deals for offshore exploration and mineral projects this week.

A high-level Turkish delegation, led by Energy and Natural Resources Minister Alparslan Bayraktar, arrives in Islamabad on Tuesday. Sources said that Pakistani companies and Turkish Petroleum Overseas Company (TPOC) will sign an agreement for Eastern Offshore Block-C. The Economic Coordination Committee recently approved the transfer of management to TPOC to commence operations at Block-C. The committee approved a 34% working interest in TPOC, a 26% stake in the Oil and Gas Development Company (OGDC) and a 20% stake in Mari Energies.

“The Turkish company and Pakistani companies will sign a commercial agreement on the offshore block to start exploration work next year,” an official said, adding that Oil Minister Ali Pervez Malik played a key role in forging the partnership.

Sources said a Turkish delegation had already visited Pakistan to finalize a mineral deal, which will be concluded during the upcoming trip.

“Although the Turkish company is not involved in the Reko Diq copper and gold mining project, it may get a lease for a mine in the same zone,” a source said. Pakistan has a 15 km long copper and gold belt in Balochistan where the Reko Diq project is located. The government has already granted a copper and gold mining lease in the same zone, and the Turkish company also wants to get the lease.

After the acceleration of operations in Reko Diq, many global investors are attracted to mining projects in Pakistan.

While several companies have left Pakistan in recent years due to bureaucratic red tape, the involvement of a Turkish company in the energy sector has rekindled hopes, which may encourage other investors to come and invest.

Earlier, Italy’s Eni had formed a joint venture with US giant ExxonMobil and Pakistani state-owned companies including OGDC and Pakistan Petroleum Limited (PPL) for offshore oil and gas exploration during the previous Pakistan Tehreek-e-Insaf (PTI) government. But their efforts did not yield success.

Now, the Turkish company has been selected as the operator after PPL failed to start work on Eastern Offshore Block-C. The Turkish company will lead exploration activities in the zone.

Among the state-owned companies, OGDC has been very active in enhancing oil and gas exploration using cutting-edge technologies. Pakistani companies are also expanding their footprint on the global energy map. In the United Arab Emirates, they are looking for oil and gas reserves in offshore fields. Also, joint ventures with companies such as Turkish Petroleum would give further international exposure to Pakistani companies, industry officials said.

Meanwhile, Federal Oil Minister Ali Pervaiz Malik had a meeting on Monday with Turkish Ambassador Irfan Neziroglu to finalize preparations for the Turkish delegation to arrive on Tuesday, led by Energy and Natural Resources Minister Alparslan Bayraktar. Secretary Petroleum Momin Agha and MD OGDC Ahmed Hayat Lak were also present in the meeting.

During the talks, Ali Pervaiz Malik said, “We look forward to welcoming the Turkish minister and his team to Pakistan. Their tour will play a transformative role in promoting bilateral cooperation in the energy and mining sectors.” The meeting reviewed the expanding cooperation between Pakistan and Turkey in the fields of energy, oil and minerals. It was noted that Turkish Petroleum joined offshore and onshore exploration activities in Pakistan – a major milestone in bilateral cooperation.

The ambassador noted that a leading Turkish mineral company will be part of the delegation, reflecting Ankara’s strong interest in investing and cooperating with Pakistan’s mineral development sector. Ali Pervaiz Malik highlighted that Pakistan’s leading exploration companies – OGDC, PPL and Mari Energies – joined hands with Turkish Petroleum, which would create new opportunities for joint ventures and strengthen cooperation on the global stage.