OGDC Poised To Recover Rs80 Billion From Uch Power Plant

Islamabad: Oil and Gas Development Company Limited (OGDC) anticipates recovering approximately Rs80 billion from Uch Power Plant as part of the ongoing resolution of the power sector’s circular debt, a key takeaway from the Pakistan Day Conference 2025 organized by Topline Securities for international investors. OGDC’s Chief Financial Officer, Anas Farook, shared this projection during a session focused on the company.

Farook also revealed that OGDC expects to obtain the second interest payment of Rs7.7 billion on government-issued TFCs within the next week. This will lower the outstanding interest to Rs76.6 billion, due over the coming 10 months. He added that OGDC has distributed Rs42 billion in dividends to the government, reflecting its 10% stake, and is settling other obligations.

The CFO provided updates on other significant developments. Negotiations are in progress with multiple US-based petroleum and service firms regarding the current offshore bidding process, and a memorandum of understanding has been signed with Turkish Petroleum for offshore acreage. Addressing gas curtailment challenges, Farook stated that OGDC is collaborating with the government to explore remedies, such as sales to external parties, while the administration assesses actions like cargo redirection. To safeguard oil yield from the Nashpa field, OGDC is coordinating with Sui Northern Gas Pipelines Limited (SNGPL) to direct curtailment towards locations with lower oil production.

On the Reko Diq project, Farook disclosed that most international financiers are nearing final board endorsements, with financial closure expected by late September or early October. Furthermore, ADNOC has executed its right to acquire a 60% interest in the Abu Dhabi Block. OGDC is also prioritizing elevated oil output using artificial lift methods like Electrical Submersible Pumps (ESPs), aiming to extract 60-70% of reserves, compared to the present 30%. Finally, Farook indicated that OGDC possesses a 14-year combined oil and gas reserve life (without replenishment), but a near 100% reserve replacement rate is predicted to maintain or extend this lifespan.