OGDCL oil and gas production rises in 9MFY26 as Baragzai discovery drives growth outlook

Oil and Gas Development Company (OGDCL) reported higher crude oil and gas production in the first nine months of fiscal year 2026, supported by new field additions and operational improvements. Pipeline constraints continue to limit full output, management said.

How much has OGDCL oil and gas production increased in 9MFY26?

OGDCL crude oil production rose to 35,500 barrels per day in 9MFY26, up from 32,800 bpd a year earlier.

Gas output increased to 789 million cubic feet per day from 753 mmcfd.

LPG volumes held largely steady at 701 metric tons, compared with 709 metric tons in the same period last year.

Management described the increase as reflecting overall improvement in production, even as natural declines in mature fields persist.

Why is OGDCL production being curtailed despite higher output?

Current production stands at approximately 40,034 bpd of oil, 769 mmcfd of gas, and 811 metric tons of LPG. Curtailment has reduced output by 2,671 bpd of oil, 53 mmcfd of gas, and 21 metric tons of LPG.

Management attributed the bottleneck primarily to the Bettani field, where pipeline capacity from SNGP is insufficient, a problem further strained by additional supply from Waziristan fields.

Curtailment was significantly higher earlier, reaching 6,000 bpd of oil and 138 mmcfd of gas during heightened U.S.-Iran tensions, but has since eased. Management described the issue as a technical bottleneck rather than a demand problem. Resolving it through capacity expansion could take six to twelve months.

What is the Baragzai discovery and why does it matter for OGDCL?

The Baragzai discovery in the Nashpa block is a key driver of OGDCL's growth outlook. Currently producing around 6,160 bpd, the field exceeded initial estimates of 5,300 bpd, with test results coming in above 6,000 bpd. The discovery holds an estimated 100 million barrels of oil equivalent and carries gas potential of 18 mmcfd.

Management expects Baragzai production to scale to 22,000-25,000 bpd within two to two-and-a-half years. Development drilling is planned for 2027, with plant expansion to follow in 2028. Overall, the company aims to raise production to 48,000-50,000 bpd by December 2026 through optimization and incremental additions, without relying on major new discoveries.

What is OGDCL's reserve position and project pipeline for FY27?

The reserve replacement ratio stood at 153% for 9MFY26, rising to 240% for operated assets, reflecting strong exploration performance. Management flagged a high-potential discovery in Khyber Pakhtunkhwa that could further boost reserves. Capital expenditure for FY27 and FY28 is expected to remain broadly in line with current levels.

On the project front, civil works at Reko Diq are ongoing and the Uch plant turnaround was completed in late April, restoring volumes. The KPD compression project, expected to add around 100 mmcfd of gas, is now targeted for completion by end-2026 after earlier delays. OGDCL has also partnered with a French firm to deploy water injection systems at the Kunnar and Pasakhi fields in Sindh to enhance recovery.

Receivables collection declined to 87% in the latest quarter from 120% in the prior period, which had been lifted by a one-off settlement. Excluding that settlement, management said collections remain healthy, with April showing particularly strong performance. Pricing continues to be based on Arab Light crude delivered at Dubai or Oman ports as the primary reference.