OGDCL’s 13th Success: Major Oil & Gas Reserves Found in Sindh Province

Pakistan’s energy sector received a major breakthrough when the Oil and Gas Development Company Limited (OGDCL) announced a significant oil and gas discovery at the Chakar-1 exploratory well in Tando Allah Yar, Sindh. This discovery marks the 13th successful find under the Tando Allah Yar Exploration License, with drilling operations that began on June 2, 2025, reaching a depth of 1,926 meters.

The timing of this discovery couldn’t be better for Pakistan, which faces mounting energy challenges and rising import costs. The well produces about 275 barrels of oil per day (BOPD) at 400 psi through a 32/64-inch choke, offering new hope for the country’s energy independence goals.

Key Discovery Details

Technical Specifications

The Chakar-1 well represents a significant technical achievement for OGDCL’s exploration team. Here are the essential details:

Production Potential

Initial testing revealed a flow rate of 275 barrels of oil per day, with a second drill stem test (DST) currently underway to evaluate the well's full hydrocarbon potential. This production rate, while modest by international standards, represents a valuable addition to Pakistan's domestic energy supply.

Why This Oil & Gas Reserves Discovery Matters

Economic Impact

Pakistan's energy import bill continues to strain the national economy. This new oil and gas reserves discovery offers several economic benefits:

• Reduced Import Dependency: The 275 BOPD production can save Pakistan approximately $1-2 million annually in import costs
• Foreign Exchange Savings: Lower oil imports mean reduced pressure on foreign currency reserves
• Job Creation: The exploration and production activities will generate 500-1,000 direct and indirect jobs in Sindh
• Investment Attraction: Success at Chakar-1 makes the Tando Allah Yar license more attractive to foreign partners

Strategic Significance

This discovery strengthens Pakistan's position in several ways:

• Energy Security: Every barrel produced domestically reduces reliance on volatile international markets
• Regional Development: Sindh province continues to emerge as Pakistan's energy hub
• Exploration Confidence: The 13th successful discovery validates OGDCL's exploration strategy in the region
• Technology Transfer: Joint ventures with international partners bring advanced drilling techniques to Pakistan

Technical Analysis of Oil & Gas Reserves

Geological Formation

The Chakar-1 well tapped into the Upper Shale of the Lower Goru Formation, a proven hydrocarbon-bearing geological structure in the region. Based on wireline log interpretation and Reservoir Evaluation Services (RES) data, a Drill Stem Test (DST) was conducted to assess the reservoir's commercial viability.

Production Optimization

OGDCL's technical team employed modern drilling and completion techniques:

• Electric Submersible Pump (ESP): Used to optimize production rates
• Choke Management: The 32/64-inch choke ensures controlled flow rates
• Pressure Maintenance: Operating at 400 psi indicates good reservoir pressure
• Formation Evaluation: Advanced logging techniques confirmed hydrocarbon presence

Challenges and Opportunities

Infrastructure Development

The Chakar-1 discovery presents both opportunities and challenges:

Opportunities:

• Pipeline connectivity to existing networks
• Storage facility development in Tando Allah Yar
• Processing plant expansion possibilities
• Export potential through nearby ports

Challenges:

• Remote location requires infrastructure investment
• Security considerations for ongoing operations
• Environmental impact assessments
• Regulatory approvals for expanded operations

Market Dynamics

Pakistan's energy market dynamics affect the commercial viability of new discoveries:

• Domestic Demand: Rising energy consumption supports local production
• Price Competition: Domestic production must compete with imported crude prices
• Refinery Capacity: Existing refineries can process additional crude oil
• Distribution Networks: Oil marketing companies can handle increased local production

Future Exploration Plans

Upcoming Activities

A second drill stem test (DST) is currently underway to evaluate the well's full hydrocarbon potential. OGDCL plans several follow-up activities:

• Extended Well Testing: To determine sustained production rates
• Nearby Prospects: Exploration of adjacent geological structures
• Seismic Surveys: Additional data collection for future drilling locations
• Development Planning: Infrastructure requirements for commercial production

Investment Requirements

Developing the Chakar-1 discovery requires significant investment:

• Well Completion: Final casing and production equipment installation
• Gathering System: Pipelines to collect production from multiple wells
• Processing Facilities: Separation and treatment equipment
• Transportation: Connection to existing pipeline networks

Impact on Pakistan's Energy Landscape

Current Energy Scenario

Pakistan's energy sector faces multiple challenges that make discoveries like Chakar-1 particularly valuable:

• Import Dependency: Pakistan imports over 80% of its crude oil requirements
• Foreign Exchange Pressure: Energy imports consume significant foreign currency
• Supply Security: Geopolitical tensions affect energy supply chains
• Price Volatility: International oil price fluctuations impact the economy

Long-term Benefits

The Chakar-1 discovery contributes to Pakistan's long-term energy strategy:

• Diversification: Reduces dependence on specific import sources
• Technology Development: Builds local expertise in oil and gas exploration
• Revenue Generation: Provides royalties and taxes to federal and provincial governments
• Industrial Development: Supports downstream industries and petrochemicals

Regional Context and Comparisons

Sindh Province's Energy Potential

Sindh has emerged as Pakistan's premier energy-producing province:

• Natural Gas: Major gas fields like Sui and Qadirpur
• Oil Production: Several producing oil fields across the province
• Renewable Energy: Solar and wind power projects
• Refining Capacity: Home to Pakistan's largest refineries

OGDCL's Track Record

OGDCL, along with its partner Government Holdings (Private) Limited (GHPL), successfully discovered natural gas and condensate reserves at an exploratory well named Faakir-1, located in Khairpur district, Sindh. This demonstrates the company's continued success in Sindh exploration.

Conclusion

The Chakar-1 oil and gas reserves discovery represents more than just another successful well for OGDCL. It symbolizes Pakistan's ongoing efforts to achieve energy security and reduce import dependency. With 275 barrels per day production and potential for further development, this discovery adds valuable resources to Pakistan's energy portfolio.

The success at Chakar-1 validates OGDCL's exploration strategy in the Tando Allah Yar region and opens possibilities for additional discoveries. As Pakistan continues to face energy challenges, every domestic barrel produced helps strengthen the country's economic and strategic position.

For Pakistan's energy future, discoveries like Chakar-1 prove that systematic exploration and modern technology can unlock the country's hydrocarbon potential. The continued success in Sindh province positions Pakistan to gradually reduce its energy import burden while building a more secure energy foundation for future generations.