In the eighties the rising curve of activities and the unprecedented surge in the E&P activities necessitated frequent coordination among those engaged in this sector and the need to exchange ideas on a variety of subjects of common interest. After consultation between the concerned organizations a need was felt to establish an umbrella organization which, while playing an advisory role, could safeguard the interest of its member companies. The few E&P companies operating in Pakistan at that time undertook to form the umbrella organization.

In 1988 it was originally conceived under the name and style of Pakistan Exploration and Production Companies Advisory Committee (PEPCAC) as a representative body of local and foreign companies engaged in exploration and production of petroleum. Its establishment was an important Landmark in the history of petroleum industry of Pakistan.

It was culmination of endeavours, spread over a long period, of five private sector companies namely; Mari Gas, Oxy, POL, PPL, UTP and OGDCL a public sector company. In May 1995, the organization was converted into a company, limited by guarantee, without any share capital, through the blessing of Ministry of Petroleum & NR under the new title of 'Pakistan Petroleum Exploration and Production Companies Association (PPEPCA)'