Punjab government has decided to award an oil and gas discovery block to Punjab Energy Holding Company sans holding any bidding process, it was reported on Monday.
The project is likely to generate an amount of $35 million to $45 million from the block.
Sources said that there is a 23 percent chance that 45 million barrels of oil will be discovered from the Margalla Block, which has been expanded to 1500 feet.
Punjab Grid Energy Company will keep 51 percent shares, and the remaining 49 percent shares will be given to a public-private joint venture partnership.
The oil and gas discovery project will provide employment and development opportunities to the local population.
Margalla Block includes Rawalpindi, Chakwal, and Jhelum, where oil fields are already operational.
Earlier in September 2025, Pakistan Petroleum Limited (PPL) reported a significant oil and gas discovery at its Dhok Sultan-03 well in District Attock, Punjab. This marks the second hydrocarbon find in the Dhok Sultan Block and is among the deepest oil discoveries in naturally fractured carbonate formations in the Potwar region.
According to PPL, the well was drilled after extensive geological, geophysical, and reservoir engineering studies. The company said optimization of well design helped overcome drilling challenges, saving both time and cost.
