The Oil & Gas Development Company (OGDC) is set to recover Rs. 80 billion from the Uch Power Plant as part of the ongoing power sector circular debt resolution, according to key updates shared during the Pakistan Day Conference 2025 for foreign investors.
The conference, organized by Topline Securities, featured Mr. Anas Farook, CFO of OGDC, as the keynote speaker. He highlighted the company’s progress in addressing financial challenges and operational strategies, with the circular debt resolution being a significant milestone.
As part of its financial recovery plan, OGDC expects to receive the second interest instalment of Rs. 7.7 billion against Term Finance Certificates (TFCs) issued by the government within the next seven days. This will reduce the outstanding interest amount to Rs. 76.6 billion, payable over the next 10 months.
Additionally, the company has released Rs. 42 billion in dividends to the government, representing 10% of its shareholding, while other liabilities are also being settled.
To address the issue of forced gas curtailment, OGDC is collaborating with the government on various solutions, including selling gas to third parties and diverting cargoes. The company is also coordinating with SNGPL to shift curtailment toward lower oil-yielding fields, ensuring the protection of output from the Nashpa field.
International lenders for the Reko Diq project are in the final stages of securing board approvals, with financial close expected by late September or early October.
The company’s management also disclosed that it has a combined oil and gas reserve life of 14 years, with a nearly 100% reserve replacement ratio, ensuring sustained production levels in the future.
The company is also focusing on increasing oil production through the installation of Electrical Submersible Pumps (ESPs) and other advanced techniques. These measures are expected to enable the company to extract 60-70% of its reserves going forward, compared to the current rate of 30%.
It has also signed a Memorandum of Understanding (MoU) with Turkish Petroleum for offshore blocks and is in discussions with several US-based petroleum and services companies as part of the ongoing offshore bidding round.
