Islamabad, March 25, 2026 – Oil and Gas Development Company Limited (OGDCL) has uncovered a large-scale crude oil theft operation and an illegal refinery in Tando Allahyar, prompting calls for strict legal action against those involved.
According to officials, the theft was carried out through illegal tapping of the Kunnar Pasakhi Deep (KPD)-TAY oil field pipeline near Tando Jam, close to the Machhi Hotel police check post. The stolen crude oil was transported to an unauthorized refinery, where it was processed and sold in local markets.
Coordinated Investigation Exposes Network
OGDCL launched a detailed investigation in January 2026 in collaboration with intelligence and law enforcement agencies. After weeks of surveillance and technical tracking, authorities identified multiple illegal tapping points along the pipeline and traced the refinery’s location in the Siri area of New Hyderabad City.
A joint raid involving eight police vehicles, five OGDCL vehicles, and support from an intelligence agency led to the recovery of refining equipment and a significant quantity of stolen crude oil. However, suspects fled the scene, abandoning five motorcycles.
FIR Registered, Vehicles Seized
Police in Tando Jam registered a case against the alleged gang leader Wazir Daudani and his accomplices, including Ghani Daudani, Badshah Nizamani, and Mabaan Nizamani, along with six others. The FIR was lodged on the complaint of an OGDCL security supervisor at the Pasakhi Oil Field.
Authorities also seized three Suzuki vehicles and a Mazda truck reportedly used to transport stolen crude oil.
Safety and Environmental Risks Raised
Officials warned that the illegal refinery posed serious safety and environmental hazards due to improper handling and transportation of crude oil. Local residents also expressed concerns over the risks associated with such activities in populated areas.
OGDCL has urged authorities to initiate strict legal proceedings under the Anti-Terrorism Act (ATA), citing the scale of the theft and its threat to critical national infrastructure.
Protecting National Resources
The company emphasized that dismantling the theft network has helped prevent significant financial losses to the national exchequer, particularly at a time when rising energy costs are putting pressure on the economy.
OGDCL reaffirmed its commitment to safeguarding Pakistan’s energy resources, enhancing indigenous production, and reducing reliance on costly imports to preserve foreign exchange reserves.