Karachi, October 4, 2024 — Oil and Gas Development Company Limited (OGDCL), Pakistan’s leading exploration and production (E&P) company, has announced a 12% annual increase in sales revenue for the fiscal year 2023-24, according to CEO and Managing Director Ahmed Hayat Lak.
In the company’s MD Review, Lak confirmed that OGDCL’s bottom-line financials exceeded Rs 200 billion for the second consecutive year, further solidifying its position as a dominant force in the nation’s energy sector.
Lak highlighted OGDCL’s significant contribution to Pakistan’s national exchequer, stating that the company added Rs 218 billion through corporate taxes, dividends, royalties, and government levies. Additionally, OGDCL’s oil and gas production contributed an impressive US$ 3.741 billion in foreign exchange savings by substituting imports, reinforcing the company’s pivotal role in safeguarding the country’s economic and energy security.
On March 26, 2024, the Prime Minister of Pakistan recognized OGDCL’s commitment to the country’s fiscal growth by awarding the company the prestigious Tax Excellence Award. This accolade underscores OGDCL’s standing as one of the highest tax-paying organizations in Pakistan, contributing substantially to national development.
Despite operational challenges, including forced production curtailment by Sui Northern Gas Pipelines Limited (SNGPL) and United Energy Pakistan Limited (UPL), as well as issues related to the opening of Letters of Credit (LCs) and security concerns, OGDCL maintained its commitment to bridging the country’s energy supply-demand gap. “This pursuit allowed the company to retain its status as the market leader in exploration acreage, reserves, and production output, surpassing other E&P companies in Pakistan,” Lak stated.
OGDCL’s production optimization efforts resulted in an incremental daily output of 2,184 barrels of crude oil, 12 MMcf of natural gas, and 10 tons of LPG. The company accounted for 46% of Pakistan’s crude oil production, 28% of its natural gas production, and 37% of LPG output, underscoring its essential role in meeting the country’s energy demands.
Regarding exploration activities, Lak shared that OGDCL has acquired 1,236 line kilometers of 2D seismic data and 1,201 square kilometers of 3D seismic data to discover new oil and gas reserves. Thirteen wells were spud, including seven exploratory and appraisal wells and six development wells, with total drilling reaching 38,488 meters. Notably, the company’s exploratory efforts yielded five significant oil and gas discoveries, including Chak 214-1, Dars West-2, Kharo-1, Nur West-1, and Togh-2, with a combined potential daily production of 481 barrels of oil and 28 MMcf of gas.
OGDCL also launched a Real-Time Operation Monitoring Centre to enhance operational excellence in its drilling activities and monitor well operations around the clock. The company’s Reserves Replacement Ratio stood at 59%, factoring in both new discoveries and the incremental reserves from the 2023 Reserves Evaluation Study.
Lak further detailed OGDCL’s ambitious exploration plans, emphasizing that exploration remains the primary driver of growth for the company. “We have embarked on near-field exploration, with all production fields undergoing evaluation using both existing and vintage seismic data. New seismic activities are also underway, including a 3D survey in the Uch field and a planned 2D survey in the Pirkoh and Loti fields. Additionally, we are reviewing our exploration blocks to tap into their stratigraphic potential, particularly in areas like Mari East and the Britism blocks,” he said.
OGDCL’s production efforts saw a cumulative gross output of 778,381 barrels of crude oil, 4,214 MMcf of gas, and 10,111 tons of LPG. Eleven operated wells were integrated into the production system to enhance output, and electrical submersible pumps were installed at key sites, including Pasahki, Kunnar, and Sono wells, to optimize crude oil and gas production.
Looking ahead, Lak expressed optimism about production enhancement from the Bettani field, where daily production could increase to 3,000 barrels of crude oil, 35 MMcf of gas, and 80 tons of LPG, pending successful drilling and completion of the Bettani-2 and Bettani Deep-1 wells.
In conclusion, OGDCL’s consistent financial performance and unwavering commitment to operational excellence position the company to continue playing a central role in Pakistan’s energy future, contributing to both economic stability and energy security.