OGDC to Assess Lithium Commercial Potential in 3 Months
KARACHI: Oil and Gas Development Company Limited (OGDC) plans to assess the commercial potential of its lithium discovery within the next three months, following the detection of lithium in a geothermal well in Khairpur, Sindh.
During its corporate briefing on 2025-26 and first-quarter 2026-27 financial performance, OGDC management said lithium was detected during testing of the company’s first geothermal well. The concentration reportedly meets international benchmarks.
The company identified 291 milligrams of lithium per litre (mg/L) in geothermal brine at its Wahid Bakhsh-01 well in Khairpur.
However, the reported concentration represents lithium present in the well’s water, not the quantity already recovered or commercially produced. OGDC will now evaluate extraction technology, recoverable quantities and economic feasibility to determine whether commercial production is viable.
The development could open a new avenue for Pakistan’s mineral sector. However, Pakistan is not currently recognised as a commercial lithium-producing country and has no official position in global lithium production rankings.
OGDC has also announced plans to analyse more than 2,000 samples from selected wells to assess the country’s lithium and rare-earth mineral potential.
OGDC Reports Higher Oil and Gas Production
OGDC also reported an increase in its average daily net production during the first quarter of 2026-27.
The company’s average daily net crude oil production reached 35,494 barrels per day (bpd), representing a 13% year-on-year increase. Meanwhile, natural gas production rose 14% to 732 million cubic feet per day (mmcfd).
Four wells were connected to the production system during the quarter: Bobi-11, Chak 63-5, Maru-3 and Sono-10.
However, security-related disruptions affected the company’s operations, reducing production by 1,254 bpd of crude oil, 94 mmcfd of gas and five tonnes per day of liquefied petroleum gas (LPG).
These disruptions resulted in an estimated revenue loss of Rs9.7 billion, with an estimated earnings-per-share (EPS) impact of Rs1.2.
Management said it was maintaining crude oil production at approximately 36,000-37,000 bpd despite natural field declines and security challenges. The company expects overall production to grow by 8-10% during 2026-27.
OGDC Advances Offshore Exploration Activities
OGDC has also been awarded eight offshore exploration blocks, with Turkish Petroleum joining the company as a partner.
The seismic survey, initially scheduled for March-April 2026, was postponed due to the regional situation. Management now expects the activity to begin within the next couple of weeks.
During the briefing, management also provided an update on the Reko Diq project. The project’s operator, Barrick, is currently reviewing the development plan.
Barrick’s senior management, including its chairman, is expected to attend the Pakistan Minerals Investment Forum scheduled for November 12-13. A high-level joint venture visit to the project site is also planned for the following week.
ADNOC Development Plan Reaches Engineering Stage
Management also discussed developments in Abu Dhabi, where ADNOC has taken its full 60% stake in an offshore block and assumed operatorship.
The development plan has been approved, and the project has entered the engineering stage. On-ground development activities are expected to begin in the first quarter of 2027, although supply-chain and procurement delays remain possible.
Key Projects Expected to Boost OGDC Production
OGDC is progressing on several projects expected to support future oil and gas production.
The KPD-TAY compression project is expected to be completed by March 2027. It is projected to add approximately 1,500 bpd of crude oil and 100 mmcfd of natural gas.
The Bettani development project is scheduled for phased completion, with Phase I targeted for December 2027 and Phase II for June 2028. The project is expected to contribute 3,842 bpd of crude oil and 85 mmcfd of gas. However, gas production will remain subject to SNGPL pipeline capacity and offtake arrangements.
The Kunnar Pasakhi water injection project is expected to be completed by March 2027 and could enhance hydrocarbon recovery by 8-10%.
Meanwhile, the Rajian heavy oil project is expected to take approximately 12 months to complete. Following its completion, production could reach between 8,000 and 10,000 bpd.
OGDC Starts Pakistan’s First Pilot Horizontal Shale Gas Well
During the quarter, OGDC also spudded two wells, including Nahiyoon-1, described as Pakistan’s first pilot horizontal shale gas well, and Bitrism NW-1.
On crude oil pricing, management clarified that the company does not follow a single benchmark across all its fields.
Instead, realised crude oil prices are determined on a field-by-field basis under the respective Petroleum Concession Agreements (PCAs), with applicable benchmarks and pricing mechanisms varying between fields.
Management expects the company’s effective tax rate to remain broadly at the same level reported in the first quarter of 2026-27.
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