OGDCL announces oil discovery in Sindh

ISLAMABAD: The Oil & Gas Development Company Limited (OGDCL) has announced a new oil discovery at the Chakrun-1 exploratory well in Chakar–one, Oil Field in Tando Allah Yar, Sindh, ARY News reported.

According to OGDCL official statement, the discovery was made under the Tando Allah Yar Exploration License, with OGDCL holding a 95% operating interest and Government Holdings (Private) Limited (GHPL) as a 5% carried-interest partner.

Drilling at the Chakar–one well began on June 2, 2025, and reached a total depth of 1,926 meters into the Upper Shale of the Lower Goru Formation, according to the OGDCL statement.

Following wireline log interpretation and Reservoir Evaluation Services (RES) data analysis, a Drill Stem Test (DST) was conducted in the B-Sand formation, with further testing using an Electrical Submersible Pump (ESP).

The well demonstrated a flow rate of 275 barrels of oil per day (BOPD) through a 32/64-inch choke at a wellhead flowing pressure of 400 psi.

This marks the 13th oil discovery by OGDCL in the Tando Allah Yar Exploration License area, further strengthening the company’s contribution to Pakistan’s energy sector.

The development came after U.S. President Donald Trump trumpeted a pact to help develop Pakistan’s oil reserves. “We have just concluded a Deal with the Country of Pakistan, whereby Pakistan and the United States will work together on developing their massive Oil Reserves,” Trump wrote on social media.

“We are in the process of choosing the Oil Company that will lead this Partnership.”

OFFSHORE EXPLORATION

However Pakistan has seen a series of unsuccessful offshore exploration attempts. Its proven recoverable conventional crude oil reserves of between 234 million and 353 million barrels by different estimates place it around 50th in the world.

Shale oil extraction has not been developed in Pakistan, though a 2015 study by the U.S. Energy Information Administration estimated a technically recoverable shale oil resource of 9.1 billion barrels for Pakistan.

Oil is Pakistan’s biggest import item, $11.3 billion in the year ended June 30, 2025, accounting for nearly a fifth of its total import bill, central bank data showed.

The agreement does have potentially wider diplomatic aspects. Washington has been concerned to wean Pakistan, a nuclear-armed country of 240 million people, away from its increasing dependence on China.

Before the Trump administration, Islamabad’s relationship with Washington had cooled in recent years, as the U.S. had drawn closer to Pakistan’s traditional adversary India.

Also Read: Pakistan, US successfully finalize landmark trade deal

There was also resentment from Washington over Afghanistan, especially under the administration of President Joe Biden, which oversaw a chaotic withdrawal from Afghanistan and the handing over of the country to the Taliban insurgency.

Under Trump, Washington has sought to renegotiate trade deals with many countries which he threatened with tariffs for trade relations he calls unfair, a characterization many economists dispute.

In South Asia, Trump has repeatedly taken credit for a ceasefire agreed between India and Pakistan on May 10, after four days of conflict, saying he used the threat of restricting trade to get the two sides to halt hostilities.

Islamabad embraced that version of events, praising him for intervening and then nominating him for the Nobel Peace Prize. India disputes Trump’s claims that the ceasefire resulted from his involvement and trade threats.