The top U.S. diplomat in Pakistan has highlighted a “strong and growing interest” from American companies in the country’s oil, gas, and minerals sectors, following President Donald Trump’s recent remarks about Pakistan’s “massive” energy potential, Bloomberg reported.
The comments came after Petroleum Minister Ali Pervaiz Malik met with U.S. Chargé d’Affaires Natalie A. Baker in Islamabad to discuss enhancing cooperation in the energy sector. According to the ministry, discussions with U.S. firms on bidding rounds for exploration blocks are already underway.
“There is a strong and growing interest from U.S. companies in Pakistan’s oil, gas, and minerals sector, in line with the vision of President Trump,” Baker said. She added that the embassy will “actively facilitate direct linkages” between businesses in both countries.
Trump’s late-July post on social media claiming Pakistan holds “massive oil reserves” surprised global industry watchers, as it contradicted existing geological estimates. His remarks came amid growing trade tensions with India and included a suggestion that Pakistan could one day sell oil to its neighbor.
Energy experts, however, caution that the claims may be more political than technical. Moin Raza Khan, former CEO of Pakistan Petroleum Ltd., noted, “If Pakistan had massive oil reserves, international majors wouldn’t have exited in such large numbers.”
Pakistan has faced challenges in retaining foreign energy investors. Shell Plc left in 2023 after 75 years, Kuwait Petroleum Corp. exited last year, TotalEnergies SE pulled out of a fuel venture, and earlier offshore exploration efforts by Exxon Mobil and Eni Spa yielded no major discoveries. Major finds in the country date back over a decade, including Makori East (2011) and Nashpa (2009).
Officials often reference a 2013 U.S. Energy Information Administration estimate of 9.1 billion barrels of recoverable shale oil, but analysts remain cautious. In comparison, Saudi Arabia, Russia, and the U.S. hold far larger recoverable reserves.
Despite these challenges, Pakistan is actively seeking foreign investment. The government recently announced a bidding round for 40 offshore exploration blocks, including in the Indus Basin. OGDC officials confirmed ongoing discussions with U.S. companies, with bids expected by October 2025.
Any significant discovery would provide a major boost to Pakistan, where oil production has declined since its 2018 peak. The country currently spends around USD $11 billion annually on oil imports—nearly one-fifth of its total import bill, according to central bank data.
