Lithium Levels Discoverd at Khairpur, Sindh, are Above Global Benchmarks, OGDC

Oil and Gas Development Company (OGDC) has reported initial lithium concentrations at its Wahid Bukhsh-01 well that exceed international benchmarks, opening a potential new exploration avenue alongside its conventional hydrocarbon business.

Management said further testing will be carried out at the well and in surrounding areas before any assessment of commercial viability is made.

In its 1QFY27 Corporate Briefing Session, the company reported earnings per share of PKR 13.60 against PKR 8.91 in the same period last year. It also declared a dividend of PKR 5.00 per share, up from PKR 3.50 a year earlier.

Average production during the quarter stood at 35,494 barrels per day of oil, 732 million cubic feet per day of gas, and 696 tonnes per day of LPG. Output is expected to rise 8-10% in FY27. Curtailments of 1,254 BPD of oil and 94 MMCFD of gas reduced earnings by roughly PKR 1.2 per share.

Exploration activity included the drilling of two exploratory wells — Bitrism NW-1 and the shale well Nahiyoon-1 — while four wells (Bobi-11, Chak 603-05, Maru-3, and Sono-10) were injected.

On Reko Diq, management acknowledged a two-year delay in the project timeline but said the operator and joint-venture partners remain committed. On-site work continues.

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At Abu Dhabi Offshore Block-5, activities are underway with further updates expected by 1QCY27. ADNOC has exercised its option to raise its working interest to 60%, which management views as a positive signal of the block’s attractiveness.

Production from the Bettani field remains below potential due to processing facility bottlenecks and pipeline constraints on the SNGPL network.

Baragzai’s full production potential is estimated at 25,000 BPD. Full field development, including additional drilling, is expected over the next 2–2.5 years. Currently only one well is producing, with output limited by processing constraints at the Nashpa facility.

Rajian’s potential is estimated at 8,000–10,000 BPD. However, the crude is heavy (API gravity of 11–12°), and production ramp-up depends on finalising arrangements with suppliers and refineries, which could take another 1–1.5 years.

OGDC has finalised partnership agreements with Turkish Petroleum for offshore exploration. Seismic surveys, originally planned for March–April 2026, were delayed by regional tensions and are now expected to begin within weeks.

Capital expenditure over the next two years is guided at around PKR 100 billion annually, broadly in line with FY26 levels, with a possible variance of ±25% depending on economic conditions.

Discussions continue with authorities on the reversal of the remaining PKR 37 billion in Super Tax provisions. Excluding any further reversals, the effective tax rate is expected to stay broadly in line with 1QFY27 levels in the coming quarters.