Pakistan’s largest exploration and production company has entered one of its most active phases in years. OGDCL made five new oil and gas discoveries in FY 2024–25, spudded 15 wells, secured seven new exploration blocks and deployed horizontal drilling technology for the first time in a clastic reservoir — all while posting the highest profit among all federal state-owned enterprises.
Now the company is targeting a further 14% increase in crude oil output and a 5% rise in natural gas production as it pushes into shale gas, offshore frontiers and aggressive field optimisation.
FY 2024–25 Production Snapshot
OGDCL’s average net saleable production for FY 2024–25 stood at 30,919 barrels of oil per day (BPD), 652 million standard cubic feet per day (MMSCFD) of gas and 642 metric tons per day (MTD) of LPG. These figures solidified OGDCL’s position as the leading contributor to national output.
However, the company flagged a significant constraint. Production could have reached 32,709 BPD of oil, 743 MMSCFD of gas and 714 MTD of LPG had SNGPL not curtailed offtake from several key fields, including Nashpa, Qadirpur and Bettani, and reduced demand from Uch Power had not limited offtake from the Uch Field.1
Optimisation initiatives during the year yielded an incremental cumulative daily increase of 2,977 barrels of crude oil, 24 MMcf of natural gas and 17 tons of LPG.
Five New Discoveries and Major Finds
OGDCL’s exploration results during 2025 and early 2026 have been its strongest in recent memory.
Baragzai – Kohat’s Landmark Discovery
The Baragzai X-01 (Slant) exploratory well in the Nashpa Block produced 2,280 bpd of oil and 5.6 mmcfd of gas, marking the first hydrocarbon discovery from the Kingriali Formation. The find in Kohat district is expected to produce up to 4,100 barrels of oil per day once fully developed.
A subsequent test at the same well confirmed a second pay zone. Testing over the Lumshiwal formation revealed oil production at 225 BOPD and gas at 1.01 MMSCFD.
Dars West-3 in Sindh
OGDCL announced a gas and condensate discovery at its Dars West-3 well in Tando Allah Yar, Sindh, producing 9.70 MMSCFD of gas along with 580 barrels per day of condensate. Pipeline laying work is already underway to connect the well with the KPD-TAY processing plant, after which gas will be injected into the SSGCL network.
Read more: Third OGDCL well in Kohat adds 9,500 barrels daily to Pakistan’s total crude oil output
Technology-Driven Production Gains
OGDCL has invested heavily in advanced drilling and workover techniques to squeeze more from both new and mature assets.
Pasakhi-13 – Pakistan’s First Horizontal Clastic Well
OGDCL commenced oil production from Pasakhi-13 in Hyderabad district, marking Pakistan’s first successful horizontal oil well in a clastic reservoir, currently producing 460 barrels of oil per day. The well was drilled to a measured depth of 2,966 metres, including a 546-metre horizontal section, using geo-steering technology. Horizontal drilling allowed greater reservoir exposure, resulting in production levels nearly three times higher than offset wells under similar conditions.
Kal-03 and Pasakhi-11 Optimisation
At Kal-03 in Chakwal district, OGDCL raised production from 50 to 750 BPD — a fifteen-fold increase — through workover operations including Multistage Physico-Chemical treatment and Electric Submersible Pump installation.
At Pasakhi-11 in Hyderabad, output was raised from 610 BPD to 1,500 BPD as part of a strategic production enhancement campaign.
Exploration Expansion – New Blocks Secured
OGDCL was provisionally awarded exploration rights over seven new blocks in a competitive bidding process conducted by the Government of Pakistan in April 2025.
The company subsequently signed Petroleum Concession Agreements for five of those blocks, operating three and participating as a non-operating JV partner in two. The new acreage spans Punjab, Balochistan and Sindh — reinforcing OGDCL’s dominance in Pakistan’s exploration landscape.
Shale Gas, Tight Gas and Offshore Frontiers
OGDCL’s next growth chapter extends well beyond conventional reservoirs.
The company is fast-tracking its shale programme, shifting from a single test well to a five-to-six-well plan in 2026–27, with expected flows of 3–4 million standard cubic feet per day per well. If successful, the development could scale to hundreds or even more than 1,000 wells, with shale alone eventually adding 600 mmcfd to 1 billion standard cubic feet per day of incremental supply.
OGDCL plans to begin drilling a deep-water offshore well in the Indus Basin in the fourth quarter of 2026. Turkey’s TPAO, with PPL and consortium partners including OGDCL, were awarded a block for offshore exploration.
Internationally, OGDCL’s board approved a contribution of up to $715 million for Abu Dhabi Offshore Block-5, with early work initiated and first production expected in fiscal year 2028–29.
Financial Performance and Outlook
OGDCL recorded the highest profit among all federal SOEs in FY 2024–25, posting earnings of Rs 169.9 billion.
In the first half of FY 2025–26, OGDC posted net sales revenue of Rs 192.830 billion and profit after tax of Rs 73.019 billion, declaring the highest-ever half-year dividend payout of Rs 7.75 per share.
Looking ahead, the company aims to increase its natural gas output by 5 percent to 865 MMSCFD and elevate crude oil output by 14 percent to 40,000 barrels per day — levels not seen since the company’s peak production years.
With new blocks, fresh discoveries, advanced drilling technology and an expanding shale programme, OGDCL is positioning itself not just to offset natural decline in mature fields but to deliver meaningful production growth through 2027 and beyond.