Fresh Oil Discovery in Sindh Signals Rising Energy Potential

OGDCL hits new oil reserves in Tando Allah Yar, further boosting Pakistan’s domestic energy outlook.

Tando Allah Yar, Sindh — August 4, 2025

Pakistan’s state-owned Oil & Gas Development Company Limited (OGDCL) has struck oil once again—this time at the Chakar-1 well in Sindh’s Tando Allah Yar district—marking another milestone in the country’s quest for energy independence.

This latest discovery, revealed through a regulatory filing with the Pakistan Stock Exchange (PSX), marks the 13th successful find under the Tando Allah Yar (TAY) Exploration License. OGDCL, which operates the license with a 95% working interest, confirmed the new reserves after completing exploratory drilling and testing down to a depth of 1,926 meters. Government Holdings (Private) Limited (GHPL) holds the remaining 5% carried interest.

Solid Production Numbers Back Discovery

Initial tests from the well yielded a flow of 275 barrels of oil per day, recorded through a 32/64-inch choke at a flowing pressure of 400 psi. These figures came following a Drill Stem Test (DST) in the B-Sand layer, which was further validated using an Electrical Submersible Pump (ESP).

But the findings didn’t stop there.

Formation testing also indicated the presence of hydrocarbons in the Lower Ranikot Formation. A second round of testing has now been initiated to evaluate the full extent of reserves in this deeper layer—potentially increasing the scope of production from the same site.

Why It Matters: Strategic Energy Gains

This development is more than just another well—it’s a signal of the geological richness of the Sindh basin. For OGDCL, this reinforces the strategic importance of sustained investment in domestic exploration. For Pakistan, it’s a step toward reducing reliance on costly energy imports.

With domestic reserves playing a growing role in national energy planning, such discoveries could help buffer Pakistan’s economy against volatile global oil markets. They also align with the country’s broader goals of achieving greater energy security and reducing its import bill.

OGDCL reiterated its commitment to expanding Pakistan’s indigenous energy resources, noting that this success in Tando Allah Yar underscores the potential for further breakthroughs in the region.

Bottom Line:
The Chakar-1 well isn’t just another dot on the energy map—it’s a reminder that despite mounting energy challenges, Pakistan’s underground potential still holds answers. And with global oil prices uncertain, every barrel discovered at home counts.