ISLAMABAD: Policy reforms and administrative measures introduced by the government have begun to yield significant results, attracting investment from state-owned oil and gas companies in Turkey and Azerbaijan while helping settle major outstanding invoices and containing circular debt in the domestic gas sector, officials from the Petroleum Division said.
Turkey’s state-owned oil company TPAO is set to lead seismic and drilling operations in Indus Block C, partnering with OGDC, PPL, and Mari Energies Limited (MEL). Agreements for both onshore and offshore blocks have been finalized, and TPAO is establishing its Pakistan office with a resident team of 15–20 specialists. Turkish mining companies have also expressed interest in joint ventures and technical cooperation.
From Azerbaijan, a technical team from SOCAR will visit Pakistan this month for a week-long series of meetings at OGDC. The discussions will explore upstream opportunities in both onshore and offshore exploration licences, production leases, and broader international collaboration.
Entities such as FWO, OGDCL, and SOCAR are also contributing to the development of the Machike–Thallian–Tarujabba White Oil Pipeline (MTT-WOP), which is expected to be inaugurated soon.
OGDC is advancing its Shale Pilot Project on a fast-track basis, with Schlumberger and Baker Hughes providing technical and technological support. The pilot aims to determine the technical and commercial viability of shale gas in Pakistan, with horizontal fracking scheduled to begin in early 2026.
Officials reported significant improvement in OGDC’s invoice settlements due to government-driven reforms and timely payment mechanisms implemented through Sui companies. As a result, circular debt accumulation in the petroleum sector has been effectively contained. OGDC is receiving scheduled interest payments on Term Finance Certificates, and the principal amount has already been cleared.
Progress on the Reko Diq mining project also remains on track. Financing—structured on a 50 percent equity and 50 percent project finance model—has been secured, making it the largest financing package ever arranged for a mining project in Pakistan. International financial institutions have shown strong confidence in the project and in Pakistan’s state-owned enterprises as its shareholders. The two-phase project includes future expansion potential and is expected to generate USD 1.5–2 billion annually for Pakistan once fully operational.
Story by Wasim Iqbal
