ISLAMABAD, October 30, 2026:* Oil & Gas Development Company Limited (OGDC), Pakistan’s largest exploration and production company, today reported a profit after tax of Rs 58.5 billion for the quarter ended September 30, 2026, an increase of 53% over the corresponding quarter last year. The Board of Directors, at its meeting in Islamabad, approved the financial results and declared a first interim cash dividend of Rs 5.00 per share (50%), the highest first-quarter dividend in the Company’s history, up from Rs 3.50 per share a year earlier, said a company handout issued here on Friday.
The announcement added net sales revenue rose 38% to Rs 132.4 billion from Rs 96.2 billion in the corresponding quarter, and profit after tax increased to Rs 58.5 billion from Rs 38.3 billion, lifting earnings per share to Rs 13.60 from Rs 8.91. The improvement was driven by higher production volumes and stronger realized prices, partly offset by continued forced production curtailments and the appreciation of the rupee against the US dollar. Collections against billings stood at 100% for the quarter. OGDC contributed Rs 82 billion to the national exchequer through taxes, dividends, royalties and levies, and its indigenous oil and gas production saved the country an estimated US$ 1.32 billion in foreign exchange through import substitution.
Commenting on the results, Mr. Zafar Masud, Chairman of the Board, said: “This was a quarter of delivery: double-digit growth in oil, gas and LPG production, collections at 100% of billings, and a record first-quarter dividend for our shareholders. The Board’s decision reflects confidence in the Company’s cash generation, while preserving its capacity to invest in compression, water injection and new drilling to sustain production and to pursue new frontiers in unconventional gas, geothermal energy and critical minerals.”
Production grew in all three streams. Average daily net saleable production rose 13.3% to 35,494 barrels of crude oil, 14.2% to 732 MMcf of natural gas and 10.5% to 696 tons of LPG, compared with 31,315 barrels, 641 MMcf and 630 tons, respectively, in the corresponding quarter last year.
Growth was supported by the connection of four new wells—Maru-3, Sono-10, Chak 63-5 and Bobi-11—to the production gathering system. Electrical submersible pumps installed at four wells added 1,630 barrels per day of crude oil. The Company also completed 26 workover jobs to sustain production and arrest natural decline in mature fields.
Forced production curtailments by SNGPL and UPL continued to constrain output, reducing average daily net production by 1,254 barrels of crude oil, 94 MMcf of gas and five tons of LPG, at an estimated cost of Rs 9.7 billion in sales revenue. This compares with Rs 19.3 billion in the corresponding quarter last year. Without these curtailments, average daily net production would have been 36,748 barrels of crude oil, 826 MMcf of gas and 701 tons of LPG.
Average realized crude oil and gas prices increased to US$ 74.90 per barrel and Rs 796.08 per Mcf, respectively, compared with US$ 57.61 per barrel and Rs 718.38 per Mcf in the corresponding period.
On the exploration front, OGDC acquired 31 line-km of 2D and 213 sq. km of 3D seismic data. Seismic acquisition was affected by security constraints, adverse weather and supply chain disruptions. The Company spudded Bitrism NW-1 and Nahiyoon-1 and achieved total drilling footage of 17,348 meters. Nahiyoon-1, a horizontal pilot well targeting the Sembar shale, marks OGDC’s first step in assessing Pakistan’s unconventional gas potential, alongside an ongoing regional tight gas evaluation study.
Investment to sustain production and improve recovery continued. Construction and mechanical works on the Uch Compression Project are complete, with commissioning underway and performance testing to be completed in stages by December 2026. The KPD-TAY Compression Project is at an advanced stage and targeted for completion by March 2027, as is the Kunnar-Pasakhi Water Injection Project, the Company’s first step towards systematic enhanced oil recovery, which is expected to improve recovery by 8-10% and extend the economic life of the fields by seven to eight years. Work is also progressing on the Rajian Heavy Oil Facility Project and a mature asset revitalization initiative targeting additional recovery and longer asset life.
The Company continued to advance its diversification initiatives. In Abu Dhabi Offshore Block-5, exploration and appraisal studies are underway, alongside front-end engineering design for the development of Bu Dana, Al Bateen and Al Manhal fields, with first production targeted for 2028. At Reko Diq, the operator is reviewing the project’s security situation, capital requirements, financing, scope and timelines, which may result in changes to estimated costs and schedules. OGDC remains engaged with the operator, co-shareholders and the Government on this strategic investment.
OGDC has identified lithium in geothermal brine at Wahid Bakhsh-1, with laboratory analysis by PINSTECH recording a concentration of 291 mg/L, a level comparable to leading geothermal-lithium brines internationally. These are preliminary findings: assessment of lithium potential in adjacent water formations and of the commercial viability of geothermal resources is underway and will inform future development plans.
During the quarter, the Board approved OGDC’s first sustainability-related financial disclosures prepared in accordance with IFRS S1 and IFRS S2. The Company also established directorate-wise performance indicators and measurable targets under its Board-approved ESG Strategy and conducted an ESG awareness session for supply chain partners. These measures support its commitments under the Oil and Gas Decarbonization Charter and the UN Environment Programme’s Oil and Gas Methane Partnership 2.0, which OGDC was the first Pakistani company to join.
The company announcement said
” OGDC’s governance standards were recognised in Transparency International Pakistan’s Transparency in Corporate Reporting (TRAC) Assessment 2026, in which the Company ranked first among 104 listed companies across 28 sectors with an overall score of 92.71%. It scored 100% in Anti-Corruption Programs, Organizational Transparency, Domestic Financial Reporting, and Gender, Disability and Non-Discrimination, as well as in the separately assessed Procurement category. The assessment is based on publicly available disclosures”.
It noted OGDC remains focused on sustaining production, improving recovery from mature fields, advancing exploration and development, and maintaining financial discipline, so that it continues to deliver for its shareholders and for Pakistan’s energy security , the announcement concluded.