Massive Oil & Gas Reserves Discovered in Sindh by OGDCL!

Pakistan’s energy sector received a major boost as the Oil and Gas Development Company Limited (OGDCL) announced a new oil and gas discovery at the Chakar-1 exploratory well in Tando Allah Yar, Sindh. This breakthrough, the 13th under the Tando Allah Yar Exploration License, promises to strengthen Pakistan’s domestic energy supply amid rising import costs.

Details of the Chakar-1 Discovery

OGDCL, holding a 95% operating interest with Government Holdings (Private) Limited (GHPL) at 5%, struck oil at the Chakar-1 well in the Chakar–One Oil Field, Tando Allah Yar. Key details include:

• Drilling Timeline: Operations began on June 2, 2025, reaching a depth of 1,926 meters into the Upper Shale of the Lower Goru Formation.
• Production Stats: A Drill Stem Test (DST) with an Electrical Submersible Pump (ESP) in the B-Sand formation yielded 275 barrels of oil per day (BOPD) at 400 psi through a 32/64-inch choke. Testing in the Lower Ranikot Formation also showed hydrocarbon potential, with further evaluation ongoing.
• Significance: This marks OGDCL’s 13th discovery in the Tando Allah Yar license, reinforcing Sindh’s role as a key energy hub.

Why This Matters

The Chakar-1 discovery comes at a critical time as Pakistan grapples with a $11.3 billion oil import bill (fiscal year ending June 2025) and a widening energy demand-supply gap.

• Economic Boost: The 275 BOPD output can reduce reliance on imported oil, saving an estimated $1–2 million annually if scaled.
• Energy Security: With Pakistan’s proven crude oil reserves at 234–353 million barrels, such discoveries bolster domestic supply.
• Investment Potential: The find strengthens OGDCL’s Tando Allah Yar license, attracting potential foreign partnerships, like the recent U.S.-Pakistan energy deal.

Impact on Pakistan

• Consumers: Lower import dependence could stabilize fuel prices, though immediate relief is unlikely due to global oil volatility (up 5% in July 2025).
• Businesses: Energy-intensive industries like textiles may benefit from cheaper local fuel in the long term.
• Jobs: Exploration and production will create 500–1,000 jobs in Sindh, from drilling to logistics.
• Geopolitical Ties: The discovery aligns with U.S.-Pakistan energy cooperation, potentially drawing investment from U.S. firms.

Challenges Ahead

• Limited Scale: The 275 BOPD output is modest compared to global giants, requiring further exploration to maximize impact.
• Infrastructure Needs: Developing pipelines and storage in Tando Allah Yar could delay full production.
• Security Risks: Sindh’s exploration sites face occasional security concerns, deterring foreign investors.

What’s Next?

OGDCL is conducting further tests in the Lower Ranikot Formation to assess additional hydrocarbon potential, with results expected by October 2025. The company aims to scale production and explore nearby blocks, potentially adding to Pakistan’s 9.1 billion barrels of recoverable shale oil resources.