OGDCL Initiates Gas Production from Uch-35 Well in Balochistan

The Oil and Gas Development Company Limited (OGDCL) has made a significant stride in the energy sector by commencing natural gas production from the Uch-35 development well, situated in the Dera Bugti district of Balochistan. This development is crucial as OGDCL is the largest exploration and production (E&P) company in Pakistan, playing a vital role in the country’s energy landscape.

In a recent announcement to the Pakistan Stock Exchange (PSX), OGDCL expressed its satisfaction with the initiation of production from the Uch-35 well. The well was drilled to a depth of 1,345 meters, specifically targeting the hydrocarbon potential of the Sui Main Limestone (SML) formation. Currently, Uch-35 is producing an impressive 5 million standard cubic feet per day (MMSCFD) of gas, which is a substantial contribution to the national energy supply.

To facilitate this production, OGDCL has laid an 8-inch diameter, 1.2-kilometer flow line, connecting the developmental well to the OGDCL Uch Gas Processing Plant. This connection enables a steady gas supply to Uch Power Limited (UPL), further enhancing the energy infrastructure in the region.

As the operator of the Uch Development & Production Lease (D&P.L) with a 100% stake, OGDCL holds a strategic position in this field. The company is committed to synchronised exploration, drilling, and development efforts, with a focus on rapid production optimisation. This approach not only strengthens national energy security but also promotes sustainable development in the region.

However, it is important to note that OGDCL's latest financial results indicate a profit-after-tax (PAT) of Rs41.02 billion for the quarter ending September 30, 2024. This figure represents a decline of over 16% compared to Rs49.03 billion during the same period last year. Additionally, earnings per share (EPS) were recorded at Rs9.54 in the first quarter of FY25, down from Rs11.40 in the previous year.

In a related development, OGDCL recently discovered natural gas reserves at the Shahu-1 well located in the Khairpur district of Sindh. This discovery further underscores the company’s ongoing efforts to enhance the country’s energy resources.

The commencement of gas production from the Uch-35 well marks a pivotal moment for OGDCL and the energy sector in Pakistan. As the country continues to face energy challenges, such developments are essential for ensuring a stable and sustainable energy future. The ongoing efforts by OGDCL not only contribute to the national grid but also highlight the importance of investing in local resources to meet the growing energy demands of the nation.