Pakistan’s Oil and Gas Development Company Limited (OGDC) has entered into a contract for an undertaking projected to generate an additional USD 460 million in revenue over the lifespan of two of its oil fields by substantially increasing oil and gas extraction.
According to Oil and Gas Development Company Limited, the state-owned exploration and production company signed an agreement on Tuesday with the French chemical firm SNF S.A. for the supply and operation of advanced Water Injection Systems (WIS). The signing ceremony took place at the OGDC Headquarters in Islamabad.
This initiative will target the Kunnar and Pasakhi oil fields located in the Hyderabad district of Sindh province. The ceremony was attended by key officials, including Federal Minister for Energy (Petroleum Division) Ali Pervaiz Malik, MD/CEO OGDC Ahmed Hayat Lak, and French Ambassador to Pakistan Nicolas Galey.
The core objective of the scheme is to augment reservoir pressure to optimise recovery and sustain production levels. The collaboration is forecast to boost oil output by approximately 9 million barrels and increase gas yield by 3 billion cubic feet. It is also expected to improve the fields” recovery factor-the percentage of extractable oil from a reservoir-by 8 to 10 percent.
The venture is structured in three phases. The initial nine-month phase involves the installation, commissioning, and testing of the facilities. This will be followed by a two-year operations and maintenance period managed by SNF, which includes providing structured training for OGDC personnel.
Upon completion of the two-year operational term, the technology and control will be transferred entirely to OGDC. The installed facilities have a designed operational life of approximately 20 years.
In addition to the economic benefits, the initiative incorporates environmental considerations. The process involves reinjecting treated produced water into reservoir zones, providing a method for its safe disposal and reducing potential environmental risks in line with international standards.
The partnership reflects OGDC’s strategy of utilising advanced technology and collaborating with international service providers to improve operational performance and create long-term value within Pakistan’s energy sector.