OGDCL and Chinese CCDC Sign MoU for Shale and Tight Gas Development in Pakistan.

Oil and Gas Development Company Limited (OGDCL), Pakistan’s leading exploration and production company, and CCDC, a major player in drilling and upstream oil field services, signed a Memorandum of Understanding (MoU) for the development of Pakistan’s shale and tight gas potential.
Federal Minister for Petroleum Dr. Musadik Malik witnessed the MoU signing ceremony in Xi’an, Shaanxi Province, China, during the ongoing 8th Silk Road International Expo for Investment and Trade, according to a news release received here.
The MoU highlights the commitment of both countries to developing Pakistan’s shale and tight gas resources, aiming to address the country’s energy needs through indigenous sources. Mumtaz Ali Soomro, Executive Director (Production) of OGDCL, and Mr. Zhang Zhidong, Vice President of CNPC Chuanqing Drilling Engineering Company Ltd., signed the MoU on behalf of their respective organizations. Pakistan’s Ambassador to China, Khalil Hashmi, also attended the event.
Dr. Musadik Malik expressed hope that cooperation in the energy sector between both nations will continue to strengthen in the future, benefiting both countries mutually. He emphasized the collaboration between OGDCL and CCDC on shale and tight gas, stating that this partnership will open a new chapter in the exploration of Pakistan’s untapped energy resources.
Who is CCDC?
CNPC Chuanqing Drilling Engineering Company Limited (CCDC), a subsidiary of China National Petroleum Corporation (CNPC), is China’s largest oil and gas producer, as well as one of the world’s major oilfield services providers and a globally reputed contractor in engineering construction. CCDC has expanded its operations by establishing branches in eight countries: Afghanistan, Ecuador, Indonesia, Iran, Kazakhstan, New Zealand, Pakistan, and Turkmenistan. With a strong focus on upstream oilfield services, CCDC is committed to providing innovative solutions to develop the oil industry across all its subsidiaries, says the company’s LinkedIn account.
Rise in Oil Reserves
According to a media report, Pakistan’s oil reserves saw a 26% rise, while gas reserves increased by 2% by the end of the 2024 financial year, based on official data from the Petroleum Information Service.
These positive developments were achieved with the support of the Special Investment Facilitation Council (SIFC), which enabled new discoveries in the exploration and production sectors. By June 2024, Pakistan’s crude oil reserves reached 243 million barrels, compared to 193 million barrels in December 2023. Similarly, gas reserves grew from 18.10 trillion cubic feet in December 2023 to 18.47 trillion cubic feet by mid-2024.
Experts believe the newly discovered oil reserves can meet Pakistan’s needs for ten years, while gas reserves are sufficient for seventeen years. Energy expert Hamdan Ahmed reportedly appreciated the government’s proactive measures, attributing the 50 million barrel increase in oil production and the 1.1 trillion cubic feet growth in gas reserves to effective exploration and well-managed initiatives.
Key contributors to these achievements include OGDCL, Pakistan Petroleum Limited (PPL), Mari Petroleum Company Limited, and Pakistan Oilfields Limited. This promising progress, aided by SIFC reforms, is expected to attract more investments in Pakistan’s gas sector, especially in exploration and production. According to experts, these local reserves help refineries meet 70% of the country’s diesel demand and 30% of its petrol demand.
Pakistani Shales for Shale Gas Exploration
A study titled “A Review of Pakistani Shales for Shale Gas Exploration and Comparison to North American Shale Plays,” published in Science Direct in 2022, states that large shale gas plays were discovered in China, where the Cambrian, Ordovician-Silurian, Carboniferous-Permian, and Triassic-Jurassic shales are the most significant producing resources. Other shale plays exist across the Asian continent, with more development plans underway in countries such as India and Saudi Arabia. The energy crisis in Pakistan requires a long-term solution to reduce the gap between supply and demand, as production from conventional reservoirs is insufficient to meet the country’s growing energy needs.
According to initial studies from the United States Energy Information Administration, Pakistan contains approximately 3,000 billion cubic meters (bcm) of shale gas reserves, suggesting that the total resource potential of shale gas in Pakistan is higher than the estimated reserves. Exploiting shale gas reservoirs may enhance gas production and alleviate the severity of the ongoing energy crisis. The main challenge in Pakistan is evaluating the shales using limited data and samples, which is why only a few companies are currently working on shale gas reservoirs in the country. Researchers need to assess and rank prospective Pakistani shales to attract companies to consider shale gas development. While the geological characterization of Pakistani shales has been investigated by several authors, more detailed work is required on geochemical, petrophysical, and geomechanical characterization to assess the actual potential of shales in Pakistan.
The study further states that three sedimentary basins exist within Pakistan: the Indus Basin, the Balochistan Basin, and the Pishin Basin. Most conventional oil and gas production occurs in the Indus Basin, which is subdivided into three parts: the Upper, Middle, and Lower Indus Basins (UIB, MIB, and LIB, respectively). Although the Lower Indus Basin (LIB) is likely more prospective for hydrocarbon production, many of the marine shales of the Indus Basin have been identified as source rocks for conventional reservoirs in the basin. Therefore, it seems reasonable to assess their potential for shale gas production.