ISLAMABAD: Oil and Gas Development Company Limited (OGDC), Pakistan’s largest exploration and production company, is facing infrastructure constraints that could delay efforts to unlock the full production potential of its Baragzai oil field, according to an analyst report.
Thank you for reading this post, don't forget to subscribe!The development was disclosed by OGDC management during an analyst briefing held on Friday to discuss the company’s financial performance for FY2026 and the first quarter of FY2027, along with its future business outlook, according to a report by Arif Habib Limited (AHL).
Management said the company planned to drill additional wells at Baragzai, but further production growth would depend on addressing facility constraints at Lashari.
The briefing also highlighted the production potential of the Rajian field, which could yield between 8,000 and 10,000 barrels of oil per day. However, the crude is relatively heavy, with an API gravity of 11–12 degrees, requiring arrangements with suppliers and refineries before production can be scaled up. OGDC expects progress on this front over the next 12 to 18 months.
Regarding investment plans, management expects annual capital expenditure to remain above Rs100 billion over the next two years, broadly in line with the current financial year. Actual spending could vary by up to 25 per cent depending on tender outcomes and supply costs.
Despite natural field declines of approximately 16 per cent, operational challenges and pipeline disruptions, OGDC maintained its FY2027 guidance for year-on-year oil and gas production growth of 8–10 per cent.
The company also discussed its strategy to diversify into unconventional resources and other energy-related opportunities, including geothermal energy and mineral exploration.
According to the AHL report, initial testing at OGDC’s Wahid Bakhsh-01 geothermal well indicated lithium concentrations above international benchmarks, prompting the company to assess the commercial extraction potential.
OGDC has partnered with INSTEC to identify potential wells, map resources and evaluate samples, with initial results expected within three months.
Separately, management confirmed that Turkish Petroleum has joined OGDC’s offshore exploration venture, with seismic activities expected to commence within the next couple of weeks.
The developments reflect OGDC’s broader strategy to strengthen domestic hydrocarbon production, expand exploration activities and diversify its energy portfolio through emerging resource opportunities.
