OGDCL Strikes Oil in Sindh After US-Pakistan Energy Deal
OGDCL Discovers Oil in Sindh, Boosting Pakistan’s Energy Sector
The Oil and Gas Development Company Limited (OGDCL) has discovered oil in Tando Allah Yar, Sindh, according to an official statement released by the company.
This discovery was made under the Tando Allah Yar Exploration License, where OGDCL owns a 95% share, and Government Holdings (Private) Limited (GHPL) owns 5%.
Drilling started on June 2, 2025, at the Chakar-1 well and reached a depth of 1,926 meters. Testing showed that the well can produce 275 barrels of oil per day through a specific pressure system.
This marks the 13th oil discovery in the area by OGDCL, further strengthening its role in meeting Pakistan’s energy needs.
US-Pakistan Oil Deal Announced
This discovery comes after former U.S. President Donald Trump announced a new oil partnership with Pakistan. Trump said on social media:
“We have just concluded a Deal with the Country of Pakistan to develop their massive Oil Reserves.”
He added that the two countries are now selecting the oil company that will lead this joint project.
Challenges in Oil Exploration
Pakistan has struggled with offshore oil exploration in recent years, despite having estimated conventional oil reserves of up to 353 million barrels. A 2015 U.S. report also suggested Pakistan may have 9.1 billion barrels of recoverable shale oil, but shale extraction has not yet started.
Oil remains Pakistan’s largest import, costing the country $11.3 billion in the year ending June 30, 2025, which is about 20% of the total import bill, according to the central bank.
Political and Trade Impact
The U.S.-Pakistan oil deal may also have a diplomatic side. Washington has shown interest in reducing Pakistan’s reliance on China.
Relations between the U.S. and Pakistan had become tense in recent years, especially under President Biden, due to the Afghanistan withdrawal. But under Trump, ties improved, with Trump even taking credit for mediating a ceasefire between India and Pakistan in May 2025.
Pakistan supported Trump’s version of the peace deal and even nominated him for a Nobel Peace Prize, while India denied his involvement.
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