OGDCL discovers hydrocarbon reserves in Sindh.

In a significant milestone for Pakistan’s energy sector, the Oil and Gas Development Company Limited (OGDCL), the nation’s largest exploration and production (E&P) firm, has made an exciting discovery of hydrocarbon reserves at the Akhiro-1 exploratory well. This well is strategically situated in the Khairpur district of Sindh, a region known for its geological potential.
The announcement was formally communicated in a notice to the Pakistan Stock Exchange (PSX) on a Wednesday, sparking interest and optimism among investors and stakeholders alike. The notice detailed that the Sawan South joint venture, which includes OGDCL holding a 20% working interest, alongside United Energy Pakistan Limited (UEPL) as the operator with a commanding 75% stake, Government Holding Private Limited (GHPL) with 2.5%, and Sindh Energy Holding Limited (SEHL) also with 2.5%, has successfully unearthed gas from the Lower Gour B Reservoir Sand at the Akhiro-1 well.
OGDCL’s update revealed that drilling operations at the well commenced on June 15, 2024, and the drilling team has achieved a remarkable depth of 12,442 feet. The well underwent testing and exhibited promising results, producing approximately 10 million standard cubic feet per day (mmscfd) of gas at a choke size of 24/64 inches and a Wellhead Flowing Pressure (WHFP) of 4,000 pounds per square inch (Psig). This successful output not only underscores the potential of the well but also marks a significant step forward in the exploration of energy resources in the region.
Furthermore, OGDCL emphasized that this discovery mitigates risks associated with further exploration in the Sawan South Block. The company noted that the newfound reserves will play a crucial role in bolstering the energy security of Pakistan, relying on indigenous resources to meet the nation’s energy demands and augmenting the country’s hydrocarbon reserve base.
In the context of broader developments in the sector, just days prior to this announcement, OGDCL entered into a Memorandum of Understanding (MOU) with CNPC Chuanging Drilling Engineering Company LTD, a prominent player in China’s drilling and upstream oil field services. This partnership aims to explore the shale and tight gas potential in Pakistan, further highlighting the international collaboration aimed at enhancing the country’s energy capabilities.
In its recent financial report, OGDCL disclosed a profit-after-tax (PAT) of Rs208.98 billion for the fiscal year ending June 30, 2024. This figure represents a decline of nearly 7% compared to the Rs224.62 billion profit recorded in the same period the previous year. In light of its financial performance, the company announced a final cash dividend of Rs4 per share, equivalent to 40%, which reflects its ongoing commitment to providing value to its shareholders despite the fluctuations in earnings.
This discovery at the Akhiro-1 well not only exemplifies OGDCL’s ongoing efforts to explore and develop hydrocarbon resources but also signifies a hopeful trajectory for Pakistan’s energy landscape, promising greater stability and sustainability in the years to come.