By SKM
October 30, 2026
ISLAMABAD: Oil & Gas Development Company Limited (OGDC) has reported a 53 per cent surge in quarterly profit to Rs58.5 billion and declared a record first-quarter dividend of Rs5 per share, as higher oil and gas production and stronger crude prices lifted earnings despite continued restrictions on supplies to the domestic market.
The state-controlled exploration and production giant earned Rs38.3 billion in the same quarter last year. Revenue climbed 38pc to Rs132.4 billion for the quarter ended September 30, 2026, from Rs96.2 billion a year earlier, while earnings per share increased to Rs13.60 from Rs8.91.
The company’s board approved an interim cash dividend of Rs5 per share, up from Rs3.50 in the corresponding period last year, marking the highest first-quarter payout in OGDC’s history.
The results highlight the company’s improved earnings performance, driven by higher realised oil and gas prices and increased output, even as forced production curtailments continued to prevent it from fully exploiting its production capacity.
OGDC said average daily net saleable crude oil production rose 13.3 per cent to 35,494 barrels, natural gas output increased 14.2pc to 732 million cubic feet, and LPG production grew 10.5pc to 696 tonnes.
The gains followed the addition of four wells—Maru-3, Sono-10, Chak 63-5 and Bobi-11—to the production system. Electrical submersible pumps installed at four wells contributed an additional 1,630 barrels of oil per day, while 26 workover jobs helped sustain production from mature fields.
Curtailments continue to hit output
Despite the improvement, restrictions imposed by SNGPL and UPL cost OGDC an estimated Rs9.7 billion in lost sales revenue during the quarter. Although substantial, the impact was nearly half the Rs19.3 billion reported in the corresponding period last year.
The curtailments reduced average daily production by 1,254 barrels of crude oil, 94 million cubic feet of gas and five tonnes of LPG. OGDC said daily net production could have reached 36,748 barrels of oil and 826 million cubic feet of gas had the restrictions not been imposed.
Higher international crude prices also supported the company’s performance. Its average realised oil price increased to $74.90 per barrel from $57.61, while the average gas price rose to Rs796.08 per thousand cubic feet from Rs718.38.
OGDC collected the full amount billed during the quarter and contributed Rs82 billion to the national exchequer through taxes, dividends, royalties and levies. The company estimated that its domestic oil and gas production saved $1.32 billion in foreign exchange by replacing imports.
Billions committed to production recovery
OGDC is pushing ahead with infrastructure projects to sustain output and improve recovery from existing fields, with several major initiatives approaching completion.
Construction and mechanical work on the Uch Compression Project has been completed, and commissioning is underway, with performance testing scheduled in stages through December 2026.
The KPD-TAY Compression Project and Kunnar-Pasakhi Water Injection Project are targeted for completion by March 2027. The water injection scheme is expected to improve recovery by 8-10 per cent and extend the economic life of the relevant fields by seven to eight years.
The company is also advancing a heavy oil facility at Rajian and a mature-asset revitalisation programme to extract additional resources from existing fields.
OGDC Chairman Zafar Masud said the quarterly performance reflected growth in oil, gas and LPG production, full collections against billings and a record dividend for shareholders.
He said the board’s decision demonstrated confidence in the company’s cash generation while maintaining the capacity to invest in compression, water injection, drilling and new areas of business.
Unconventional gas, lithium in focus
Alongside conventional exploration, OGDC is expanding its assessment of unconventional gas and other potential resources.
During the quarter, the company acquired 31 line-kilometres of 2D seismic data and 213 square kilometres of 3D seismic data, spudded two wells and completed 17,348 metres of drilling.
Nahiyoon-1, a horizontal pilot well targeting the Sembar shale, marks the company’s first step towards evaluating Pakistan’s unconventional gas potential. Exploration activities, however, faced security constraints, adverse weather and supply-chain disruptions.
OGDC also reported preliminary findings of lithium in geothermal brine at its Wahid Bakhsh-1 well. Laboratory analysis by the Pakistan Institute of Nuclear Science and Technology found a concentration of 291 milligrams per litre. Further studies are underway to determine the resource’s extent and commercial viability.
Overseas, development planning is progressing for the Bu Dana, Al Bateen and Al Manhal fields in Abu Dhabi Offshore Block-5, with first production targeted for 2028.
At Reko Diq, the operator is reviewing security conditions, financing, capital requirements, project scope and timelines, which could affect the project’s estimated costs and schedule.
In a further recognition of its corporate reporting, OGDC ranked first among 104 listed companies in Transparency International Pakistan’s Transparency in Corporate Reporting Assessment 2026, securing an overall score of 92.71 per cent.
The quarterly results strengthen OGDC’s financial position as it seeks to increase domestic production, improve recovery from mature fields and diversify into unconventional gas and critical minerals. The continued curtailments, however, remain a constraint on the company’s ability to translate its production potential into additional sales.Ends
