By SKM
October 29, 2025
ISLAMABAD: Oil and Gas Development Company Limited (OGDC), Pakistan’s largest exploration and production firm, on Wednesday announced its financial results for the quarter ended September 30, 2025, posting a profit after tax of Rs 38.3 billion and declaring a record first-quarter cash dividend of Rs 3.50 per share, the highest in the company’s history.
The results, approved by the Board of Directors at a meeting held in Islamabad, reflected a blend of operational resilience and prudent financial management amid production curtailments and softer global crude prices.
OGDC’s net sales revenue for the quarter stood at Rs 96.2 billion, while earnings per share (EPS) clocked in at Rs 8.91. The company contributed Rs 64 billion to the national exchequer through taxes, royalties, and dividends, and its oil and gas output helped Pakistan save US$703 million in foreign exchange as import substitution.
Production Hit by Curtailments, Oil Prices
Average daily production during the quarter stood at 31,315 barrels of oil, 641 million cubic feet of gas, and 630 tons of LPG, compared with 31,768 barrels, 699 MMcf, and 618 tons, respectively, in the same period last year.
The company said forced production curtailments by SNGPL and UPL shaved off an estimated Rs 16.7 billion in potential sales. The lower realized crude oil price — US$57.61 per barrel, down from US$64.31 last year — also weighed on revenue. These factors were partly offset by a stronger rupee-dollar parity and a higher realized gas price of Rs 718.38 per Mcf, compared with Rs 706.30 a year earlier.
In the absence of curtailments, OGDC’s management estimated average saleable production could have reached 34,038 barrels of oil, 783 MMcf of gas, and 698 tons of LPG per day.
New Discoveries and Field Boost
During the quarter, OGDC continued to reinforce its exploration base, drilling new wells and making two gas-condensate discoveries — Chakar-1 in Tando Allah Yar and Bitrism East-1 in Khairpur, Sindh — with a combined expected potential of 965 barrels of oil and 23 MMcf of gas per day. The discoveries add estimated 2P reserves of 1.65 million barrels of oil and 39.34 billion cubic feet of gas, equivalent to about 9.24 million barrels of oil equivalent (MMBOE).
The company also brought four new wells — Aradin-1, Soghri North-1, Jhal Magsi South-1, and South-2 — into production and installed electrical submersible pumps at Rajian-5 and Pasakhi-11, which together contributed an incremental 3,100 barrels of oil per day. Twenty-four workover jobs were executed to optimize output and curb natural decline.
Project Pipeline on Track
OGDC said key development projects remain on schedule. The Jhal Magsi Project in Balochistan has been commissioned, producing 14 MMcf of gas and 45 barrels of condensate daily. The Dakhni Compression Project in Punjab and KPD-TAY Compression Project in Sindh are expected to be completed by January and April 2026, respectively, while the Uch Compression Project in Balochistan is targeted for June 2026.
Diversification and Global Expansion
Pursuing diversification, the company reaffirmed its US$715 million funding commitment to the Reko Diq copper-gold project, where early site works are underway and first production is expected by FY2028-29.
In international ventures, OGDC reported progress on its Abu Dhabi Offshore Block-5 exploration, where first production is targeted for the second half of 2028, and confirmed its qualification for Libya’s Bid Round 25, with technical evaluations ongoing ahead of the February 2026 submission deadline.
The company is also advancing tight gas monetization, a geothermal collaboration with Schlumberger, and renewable energy projects through its subsidiary, OGDC Renewable Energy Limited (OREL).
Financial Health and ESG Push
Strong operational cash flows and robust collections — 129% for gas receivables and 109% overall — bolstered liquidity, lifting OGDC’s current ratio to 10.44 times from 8.16 a year earlier.
On the sustainability front, the company reported progress under its ESG Framework 2025, which aligns with GRI and SASB standards and aims for full compliance with IFRS S1 and S2 disclosure norms. OGDC has signed the Oil and Gas Decarbonization Charter at COP-28, signaling its commitment to emission reduction, transparency, and social responsibility.
Board Outlook
The Board lauded management’s “focus on operational delivery, financial discipline, and diversification,” enabling the declaration of a historic first-quarter dividend.
“The Board reaffirmed confidence that OGDC will continue to strengthen its resource base, drive sustainability initiatives, and contribute meaningfully to the nation’s energy security and economic growth,” the company said. Ends
