Energy Surge: OGDCL and French Giant Ink Deal to Boost Oil & Gas Output

On February 19, 2026, state-owned Oil and Gas Development Company Limited (OGDCL) announced a major breakthrough in Pakistan’s energy sector. Supported by the Special Investment Facilitation Council (SIFC), OGDCL signed a landmark agreement with the French specialty chemical leader SNF S.A. to deploy advanced Water Injection Systems (WIS) at the Kunnar and Pasakhi oil fields in Sindh. This project is a cornerstone of the government’s strategy to revitalize mature fields and reduce the national import bill.

The $460 million project aims to increase the recovery factor of these aging fields by 8% to 10%. By utilizing modern water injection technology to maintain reservoir pressure, the partnership is projected to add approximately 9 million barrels of oil and 3 billion cubic feet of gas over the next 20 years. The initiative will be executed in three phases, including a nine-month installation period followed by a two-year operational phase during which SNF will transfer technical expertise to OGDCL staff.

In a separate operational success, OGDCL reported a massive 1,400% production boost at the Kal-03 well in Chakwal. Through a technical workover that included the installation of a modern Electric Submersible Pump (ESP), daily output at the well surged from a mere 50 barrels to 750 barrels per day. These incremental gains are seen as vital for meeting domestic energy demands and stabilizing foreign exchange reserves.

Energy Minister Ali Pervaiz Malik highlighted that these SIFC-backed initiatives are critical for ensuring long-term energy security. The government is now looking to replicate these advanced recovery models across other mature fields in Punjab and Sindh.

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