By Ijaz Kakakhel

Oil and Gas Development Company Limited (OGDC) has unveiled an ambitious five-year expansion plan targeting a 68% increase in crude oil production and a 46% rise in natural gas sales by FY2030-31, supported by extensive drilling, development of new fields, rehabilitation of existing assets and major gas compression projects.

According to documents available with Wealth Pakistan, OGDC aims to increase crude oil production to 60,384 barrels per day (BPD) by FY2030-31, compared with 36,013 BPD projected for FY2025-26.

Similarly, natural gas sales are targeted to reach 1,167 million standard cubic feet per day (MMscfd) by FY2030-31, up from 797 MMscfd in FY2025-26.

The planned expansion reflects the company's strategy to strengthen domestic hydrocarbon production, improve recovery from mature fields and develop additional resources to support Pakistan's long-term energy requirements.

The five-year strategy envisages drilling 140 development wells, undertaking 200 rig and rigless interventions and implementing 19 brownfield revitalisation initiatives to improve production from existing fields.

It also includes 10 greenfield development and old-discovery projects, 12 pressure-maintenance and enhanced oil recovery (EOR) projects, and the expansion of seven existing production plants.

The company's production outlook projects crude oil output to rise to 41,076 BPD in FY2026-27, then to 51,239 BPD in FY2027-28 and 57,028 BPD in FY2028-29.

Production is expected to reach 59,747 BPD in FY2029-30 before increasing further to 60,384 BPD in FY2030-31.

The gas sales outlook also points towards a substantial increase over the planning period. After a projected level of 764 MMscfd in FY2026-27, gas sales are expected to rise to 935 MMscfd in FY2027-28 and 1,125 MMscfd in FY2028-29.

The company projects further growth to 1,154 MMscfd in FY2029-30 and 1,167 MMscfd by FY2030-31.

As part of its production enhancement programme, OGDC is advancing five major development and compression projects aimed at sustaining output from mature reservoirs and bringing additional hydrocarbon resources into production.

The projects include Jhal Magsi, Dakhni front-end compression, Uch compression, KPD-TAY compression and Sinjhoro Development Phase-II.

Two of these projects have already been commissioned, while the remaining three are scheduled for completion between November 2026 and March 2028.

The Jhal Magsi project in Balochistan was commissioned in August 2025. According to the company's presentation, the project produces 14 MMscfd of natural gas and 45 barrels of crude oil per day.

The Dakhni front-end compression project was commissioned in February 2026. The company has listed associated production of 100 barrels of oil per day, 5 MMscfd of natural gas and 30 metric tonnes of sulphur daily.

Compression facilities are particularly important for mature oil and gas fields because declining reservoir pressure can reduce production over time. Such facilities help maintain the flow of hydrocarbons and support continued utilisation of existing production infrastructure.

The Uch compression project in Balochistan is expected to be completed in November 2026. The company describes the project as essential for maintaining the field's production plateau.

Meanwhile, the KPD-TAY compression project in Sindh is targeted for completion in December 2026. The company's presentation lists projected daily production of 750 barrels of condensate, 50 MMscfd of natural gas and 130 tonnes of liquefied petroleum gas (LPG) associated with the project.

Another important initiative, Sinjhoro Development Phase-II in Sindh, is scheduled for completion in March 2028. The project is expected to contribute 27 MMscfd of natural gas and 30 tonnes of LPG daily.

These projects form part of OGDC's broader effort to sustain production from existing reservoirs while expanding its capacity through new development activities and improvements in field infrastructure.

The company's industry-position presentation highlights its substantial role in Pakistan's exploration and production sector.

According to the documents, OGDC accounts for approximately 55% of the country's crude oil production, 28% of natural gas production and 35% of LPG output.

The company also holds a significant share of Pakistan's hydrocarbon reserves, accounting for 58% of oil reserves and 28% of natural gas reserves.

Its exploration footprint covers approximately 31% of Pakistan's total area under exploration, while its seismic acquisition contribution stands at 53% for two-dimensional surveys and 34% for three-dimensional surveys.

OGDC has 112 production leases, comprising 82 operated and 30 non-operated interests, reflecting its extensive presence in the country's upstream petroleum sector.

The company's presentation reports current production at approximately 40,000 barrels of crude oil per day, 815 MMscfd of natural gas and 780 metric tonnes of LPG daily.

OGDC also reported net sales revenue of approximately $1.6 billion for FY2025-26, underscoring its financial and operational significance within Pakistan's energy industry.

The company's expansion strategy comes amid continuing efforts to increase indigenous energy supplies and reduce dependence on imported fuels.

By combining new development wells, enhanced recovery techniques, pressure-maintenance projects and compression infrastructure, OGDC aims to improve production efficiency and maximise hydrocarbon recovery from both existing and newly developed fields.

The planned increase in oil production and gas sales through FY2030-31 represents a major component of the company's longer-term strategy to strengthen Pakistan's domestic energy supply base.

Credit: INP-WealthPk