OGDCL makes 19 oil, gas discoveries since 2023

ISLAMABAD, June 1 (ABC):Pakistan’s Oil and Gas Development Company Limited (OGDCL) has reported 19 oil and gas discoveries since 2023, adding new hydrocarbon reserves across Sindh, Punjab, and Khyber Pakhtunkhwa. The discoveries are significant because they could increase domestic energy production and help reduce Pakistan’s reliance on imported fuel. According to official documents, the discoveries have an estimated combined production potential of approximately 17,123 barrels of oil per day (BPD) and 151 million standard cubic feet of gas per day (MMSCFD).

What are the new discoveries?

The OGDCL discoveries were made over three fiscal periods. Five discoveries were recorded during FY2023-24, with an estimated production potential of 481 BPD of oil and 29.66 MMSCFD of gas. Another five discoveries were made during FY2024-25, contributing an estimated 947 BPD of oil and 34.49 MMSCFD of gas. During the first nine months of FY2025-26, OGDCL reported nine additional discoveries with an estimated production potential of 15,695 BPD of oil and 86.95 MMSCFD of gas. Together, these discoveries represent one of the company’s largest recent additions to domestic oil and gas resources.

Why do the discoveries matter?

Pakistan imports a significant portion of its energy requirements. Increasing domestic oil and gas production can help reduce import dependence and lower the amount of foreign exchange spent on fuel purchases. According to company estimates, the newly discovered reserves could generate import substitution valued at nearly Rs1.2 billion per day if production reaches projected levels. Import substitution refers to the replacement of imported energy supplies with domestically produced resources.

Which discovery was the largest?

Among the reported finds, the Baragzai X-01 well was identified as one of the most significant discoveries. According to company data, multiple hydrocarbon-bearing zones were discovered at the site, with a tested cumulative production potential of approximately 15,005 BPD of oil and 45.36 MMSCFD of gas. The discovery accounts for a substantial share of the production potential reported during FY2025-26.

What has changed in OGDCL’s reserve position?

The company reported improvements in its Reserve Replacement Ratio (RRR), a key industry metric that compares newly added reserves with the volume of hydrocarbons produced. An RRR above 100% indicates that a company is adding reserves faster than it is extracting them. According to the documents, OGDCL’s RRR increased from 56% in FY2023-24 to 167% in FY2024-25. During the first nine months of FY2025-26, the ratio remained at 153%. The company also reported that its reserve life increased from 14 years to 17 years as of March 31, 2026. Reserve life estimates how long existing reserves could last at current production rates.

How many wells have been brought into production?

OGDCL reported bringing 34 wells and fields into production during the review period. In FY2022-23, five wells were connected to production, contributing 990 BPD of oil and 18.28 MMSCFD of gas. During FY2023-24, 11 wells added 4,398 BPD of oil and 43.23 MMSCFD of gas. Eight wells entered production in FY2024-25, contributing 744 BPD of oil and 41.80 MMSCFD of gas. During FY2025-26 up to April, another 11 wells were brought online with estimated production of 9,734 BPD of oil and 74.25 MMSCFD of gas.

What production enhancement measures were taken?

In addition to new discoveries, OGDCL carried out production enhancement activities across existing fields. The company reported conducting more than 65 rig workovers and over 295 rigless interventions. These operations are used to improve well performance, restore production, or increase recovery from existing reservoirs. According to company estimates, these measures generated an incremental production impact of about 17,000 BPD of oil and 90 MMSCFD of gas.

What happens next?

The newly discovered reserves will require further development, infrastructure investment, and production planning before reaching full commercial output. OGDCL is continuing exploration, field development, and production enhancement activities as part of its broader efforts to increase domestic oil and gas supplies and maintain reserve sustainability.