OGDCL’s crude oil output stood at 32,000 bpd at the end of last financial year, but it has now crossed 34,000 barrels through renewed efforts. photo: REUTERS
ISLAMABAD:
State-run Oil & Gas Development Company (OGDC) is planning a major expansion of unconventional gas developments from early next year, aiming to boost production and reduce reliance on imported liquefied natural gas (LNG).
Pakistan has long been viewed as having potential in both tight and shale gas, which are trapped in rock and can only be released with specialised drilling, but commercial output has yet to be proved. Managing Director Ahmed Lak told Reuters that OGDC had tripled its tight-gas study area to 4,500 square kilometres after new seismic and reservoir analysis indicated larger potential. Phase two of a technical evaluation will finish by end-January, followed by full development plans.
The renewed push comes after US President Donald Trump said that Pakistan held “massive” oil reserves, a statement analysts said lacked credible geological evidence.
“We started with 85 wells, but the footprint has expanded massively,” Lak said, adding that OGDC’s next five-year plan would look “drastically different”.
Early results point to a “significant” resource across parts of Sindh and Balochistan, where multiple reservoirs show tight-gas characteristics, he said.
OGDC is also fast-tracking its shale programme, shifting from a single test well to a five- to six-well plan in 2026-27, with expected flows of 3-4 million standard cubic feet per day (mmcfd) per well. If successful, the development could scale to hundreds or even more than 1,000 wells, Lak said.
He said shale alone could eventually add 600 mmcfd to 1 billion standard cubic feet per day of incremental supply, though partners would be needed if the pilot proves viable. The company is open to partners “on a reciprocal basis”, potentially exchanging acreage abroad for participation in Pakistan, he said.