Federal Minister for Petroleum Ali Pervaiz Malik reaffirmed the government’s commitment to indigenising Pakistan’s energy sector, stressing that exploration and production (E&P) companies must spearhead the drive toward national energy self-sufficiency.
The minister met with the managing director and senior executives of Oil and Gas Development Company (OGDC) at the company’s head office, where he received a detailed briefing on operational activities and the company’s strategy to slow production decline in mature hydrocarbon fields. He emphasised that stronger governance and sector-wide reforms are key to improving both operational efficiency and financial sustainability.
Malik assured “complete support for structural reforms” and promised government facilitation to help E&P companies maximise output and attract investment. During the briefing, OGDC management informed him that the company achieved five new oil and gas discoveries in FY25, underlining Pakistan’s untapped hydrocarbon potential.
OGDC Managing Director Ahmed Hayat Lak welcomed the government’s commitment, stating that the clarity on reforms will allow E&P firms to play a stronger role in ensuring national energy independence. Both sides pledged continued collaboration to tackle sector challenges and explore new opportunities.
Separately, OGDC announced its FY25 results, declaring the highest-ever dividend at Rs15.05 per share for the year, including Rs5 in the fourth quarter. However, earnings fell 19% year-on-year to Rs39.5 per share due to RLNG-driven gas curtailment by Sui Northern Gas Pipelines Limited, which cost the company an estimated Rs40-43 billion in lost revenue. Hydrocarbon production averaged 30,919 barrels of oil per day (bpd) and 652 million cubic feet of gas per day (mmcfd), lower than potential volumes.
Exploration costs declined sharply in the fourth quarter to Rs4 billion, bringing FY25 exploration spend to Rs18.7 billion amid three dry wells and ongoing seismic activities. Operating expenses also dropped 3% YoY to Rs35.2 billion, largely due to reduced sales volumes.
Despite these headwinds, analysts note that OGDC’s lower exploration costs and reduced effective tax rate supported stronger-than-expected earnings. The company expects improved cash inflows once progress is made on circular debt resolution in both the power and gas sectors.
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