Pakistan to build artificial drilling island after Trump’s oil reserves claim: Report

The artificial island will come up about 30 kilometers (19 miles) off the coast of the southern Sindh province, near Sujawal (Photo: Bloomberg)

Pakistan Petroleum Ltd. (PPL), the state-owned energy company, is reclaiming land from the sea to create an artificial drilling island that will serve as a launchpad to accelerate offshore oil and gas exploration, Bloomberg reported. The structure, located about 30 kilometres off the coast of Sindh near Sujawal, will be six feet high to shield operations from high tides, according to PPL’s General Manager Exploration and Core Business Development, Arshad Palekar.

Palekar said the project will allow uninterrupted, round-the-clock drilling work and marks Pakistan’s first attempt at using an artificial island for energy exploration, drawing inspiration from similar projects in Abu Dhabi. Construction is expected to be completed by February, after which drilling activity will commence, with plans to drill approximately 25 wells.

US President Donald Trump trumpeted a pact to help develop Pakistan's oil reserves. "We have just concluded a Deal with the Country of Pakistan, whereby Pakistan and the United States will work together on developing their massive Oil Reserves," Trump wrote on social media.

"We are in the process of choosing the Oil Company that will lead this Partnership."

Pakistan’s offshore exploration has gained new momentum since US President Donald Trump claimed in July that the country holds “massive oil reserves,” spurring renewed interest. Since then, Pakistan has granted offshore exploration licences to PPL, Mari Energies Ltd. and Prime International Oil and Gas Co.

Last month, Pakistan announced it had awarded 23 offshore exploration blocks to four consortiums led by domestic energy companies, some partnered with foreign firms including Turkey’s national oil company TPAO. This marked the country’s first offshore bidding round in nearly two decades. The awards covered 23 out of 40 offered blocks, spanning around 53,500 square kilometres.

Pakistan’s energy ministry said total investment could reach $750 million to $1 billion if drilling progresses. The country’s 300,000 square-kilometre offshore zone, bordering Oman, the UAE and Iran, has seen only 18 wells drilled since 1947, far too few to fully gauge its hydrocarbon potential.

With Pakistan importing around half its oil, the government is pushing to revive foreign interest following the 2019 failure of the Kekra-1 well, which led to Exxon Mobil’s exit from the market.