OGDCL discovers new gas reserves in Khairpur

KARACHI: Oil and Gas Development Company Limited (OGDCL), Pakistan’s largest exploration and production (E&P) company, has made a significant natural gas discovery at the Shahu-1 well, located in Khairpur, Sindh.

In an official notice to the Pakistan Stock Exchange (PSX) on Wednesday, the company shared the breakthrough: “We are pleased to announce the gas discovery from Sawan South Block lower Goru B Reservoir Sand of Shahu-1 well located in district Khairpur, Sindh.”

The joint venture responsible for this project includes OGDCL holding a 20 per cent working interest, United Energy Pakistan Limited (UEPL) as the operator with a 75 per cent stake, Government Holding Private Limited (GHPL) at 2.5 per cent, and Sindh Energy Holding Limited (SEHL) at 2.5 per cent. The Shahu-1 well, which was spudded on August 18, 2024, has been successfully drilled to a depth of 12,675 feet. OGDCL estimates that the well will produce gas at a rate of approximately 10 million standard cubic feet per day (mmscfd) at a wellhead flowing pressure (WHFP) of around 4,100 pounds per square inch (Psig).

This new discovery is expected to further de-risk exploration efforts in the Sawan South Block, as per the company’s statement. OGDCL emphasised that the discovery will contribute to Pakistan’s energy security by bolstering its indigenous resource base and increasing the country’s hydrocarbon reserves.

This marks the second major discovery by OGDCL in Khairpur, as the company previously announced hydrocarbon reserves at the Akhiro-1 exploratory well last month.Despite this positive development, OGDCL’s financial results for the fiscal year ended June 30, 2024, showed a profit-after-tax (PAT) of Rs208.98 billion, reflecting a 7.0 per cent decline compared to Rs224.62 billion in the same period of the previous year.