Topline Pakistan Research has organized a Pakistan Day Conference 2025, where it was announced that OGDC is set to receive Rs 80 billion from Uch Power as part of the power sector circular debt resolution. The Pakistan Day Conference 2025, aimed at foreign investors, began with a session focused on OGDC, featuring Mr. Anas Farook, CFO of OGDC, as the key speaker.
– During discussions about the ongoing offshore bidding round, management indicated they are in talks with several U.S.-based petroleum and service companies. Additionally, the company has signed a Memorandum of Understanding (MOU) with Turkish Petroleum for offshore blocks.
– OGDC anticipates receiving the second interest installment of Rs 7.7 billion from the government-issued Term Finance Certificates (TFCs) within the next seven days. This will reduce the outstanding interest amount to Rs 76.6 billion, which is payable over the next ten months.
– As part of the current power sector circular debt resolution, the company expects to recover around Rs 80 billion owed by the Uch Power Plant.
– The company has declared a dividend of Rs 42 billion, attributable to the government for its 10% shareholding. Additionally, efforts are underway to settle other liabilities.
– Management highlighted that while forced gas curtailment continues, the company is collaborating with the government to explore various options to tackle this issue, including the potential sale of gas to third parties. Simultaneously, the government is considering measures such as selling and diverting gas cargoes.
– To safeguard oil output from the Nashpa field, the company is coordinating with SNGPL to shift curtailment towards lower oil-yielding fields.
– The government is actively working to reduce the backlog of gas sector circular debt and remains committed to disciplined gas price adjustments, in line with IMF requirements, to prevent further accumulation of debt. As a result, collections from Sui companies have significantly improved, exceeding 85%, according to management.
– Management disclosed that most international lenders for the Reko Diq project are close to securing board approvals, with financial closure expected by late September or early October.
– ADNOC has exercised its option to acquire a 60% stake in the Abu Dhabi Block.
– The company is now focusing on increasing oil production through artificial lift systems, including the installation of Electrical Submersible Pumps (ESPs) and other techniques. This will enable them to extract approximately 60-70% of their reserves going forward, compared to the current extraction rate of 30%.
– According to management, OGDC currently has a combined oil and gas reserve life of 14 years (without replacement). However, with an almost 100% reserve replacement ratio, the reserve life is expected to be sustained or even extended in the future.
