OGDCL discovers hydrocarbon reserves in Sindh

KARACHI: Oil and Gas Development Company Limited (OGDCL) has made a significant discovery of hydrocarbon reserves at the Akhiro-1 exploratory well located in Khairpur, Sindh.

In a notice to the Pakistan Stock Exchange (PSX) on Wednesday, the company announced that the discovery was made by the Sawan South joint venture, which includes OGDCL (20 per cent working interest), United Energy Pakistan Limited (UEPL) as the operator (75 per cent), Government Holding Private Limited (GHPL) (2.5 per cent), and Sindh Energy Holding Limited (SEHL) (2.5 per cent).

According to the notice, drilling at the well began on June 15, 2024, and has successfully reached a depth of 12,442 feet. The well was tested at a rate of approximately 10 million standard cubic feet per day (mmscfd) with a choke size of 24/64 inches and a wellhead flowing pressure (WHFP) of 4,000 pounds per square inch (psig).

This discovery is expected to enhance energy security by utilizing indigenous resources and increasing the country’s hydrocarbon reserves base. OGDCL noted that this finding also mitigates risks for further exploration in the Sawan South Block.

In a related development, OGDCL recently signed a memorandum of understanding (MOU) with CNPC Chuanging Drilling Engineering Company LTD, a leading player in drilling and upstream oil field services from China, to explore shale and tight gas potential in Pakistan.

Financial results released by OGDCL show a profit-after-tax (PAT) of Rs208.98 billion for the fiscal year ending June 30, 2024, representing a decline of nearly 7.0 per cent from Rs224.62 billion during the same period last year. The company also declared a final cash dividend of Rs4 per share, amounting to 40 per cent.