Pakistan’s OGDCL Accelerates Unconventional Gas growth
The Oil & Gas Development Company Limited (OGDCL) is preparing a significant expansion of its unconventional gas exploration and development projects, slated to begin in early next year, with the aim of increasing domestic production and lessening Pakistan’s dependence on imported liquefied natural gas (LNG).
Pakistan has long been recognized for its potential in both tight and shale gas reserves – natural gas trapped within rock formations requiring specialized drilling techniques for extraction - but commercially viable production has yet to be achieved.
According to OGDCL Managing Director Ahmed Lak, the company has tripled its study area for tight gas to 4,500 square kilometers following new seismic and reservoir analysis indicating a larger resource potential. Phase two of a technical evaluation is scheduled for completion by the end of January, paving the way for comprehensive development plans.
This renewed focus follows a July statement by former US President Donald Trump asserting Pakistan possessed “massive” oil reserves, a claim analysts deemed unsupported by geological evidence. However,the statement prompted Islamabad to reaffirm its ongoing efforts to unlock its unconventional resources.
“We started with 85 wells, but the footprint has expanded massively,” Lak stated, adding that OGDCL’s next five-year plan will be “drastically different.” Initial findings suggest a “significant” resource base across portions of sindh and Balochistan, with multiple reservoirs exhibiting tight-gas characteristics.
Shale Pilot Program Expansion
OGDCL is also accelerating its shale gas program, increasing its planned well count from a single test well to a five-to-six-well plan for 2026-27. The company anticipates each well will yield approximately 34 million standard cubic feet per day (mmcfd) of gas. Accomplished results could lead to the development of hundreds, potentially exceeding 1,000 wells.
Lak estimates shale gas alone could ultimately contribute an additional 600 mmcfd to 1 billion standard cubic feet per day to Pakistan’s gas supply. He indicated the company is seeking partners for the project, potentially through reciprocal agreements involving acreage swaps abroad for participation in Pakistan’s unconventional gas development.
A 2015 US Energy Information Administration study estimated Pakistan holds 9.1 billion barrels of technically recoverable shale oil, the largest such resource outside of China and the United States. A 2022 assessment identified geological similarities between parts of the Indus Basin and North American shale plays,though analysts emphasize that commercial viability depends on acquiring improved geomechanical data,expanding fracking capabilities,and ensuring sufficient water availability.
OGDCL intends to commence drilling a deep-water offshore well in the Indus Basin during the fourth quarter of 2026.In October, a consortium including Turkey’s TPAO, Pakistan Petroleum Limited (PPL), and OGDCL was awarded a block for offshore exploration.
Currently, a combination of subdued gas demand, increasing solar energy adoption, and pre-existing LNG import commitments has resulted in a gas surplus, leading OGDCL to curtail production and prompting Pakistan to divert LNG cargoes from Italy’s ENI and renegotiate terms with Qatar.
