State-owned firm boosts domestic energy reserves with new find in Tando Allah Yar district
ISLAMABAD: The state-owned Oil and Gas Development Company Ltd (OGDCL) has announced a significant gas and condensate discovery at its Dars West-3 well in Tando Allah Yar district of Sindh, offering a timely boost to Pakistan’s struggling domestic energy production amid ongoing declines in natural gas output.
The discovery comes as Pakistan grapples with a widening gap between energy demand and local supply, where indigenous natural gas production has steadily declined from a peak of around 4.2 billion cubic feet per day in 2012 to lower levels in recent years due to maturing fields and limited new major finds.
During testing, the Dars West-3 well flowed at a rate of 9.70 million standard cubic feet per day (MMSCFD) of gas along with 580 barrels per day (BPD) of condensate through a choke size of 36/64 inches.
The wellhead flowing pressure reached 1,725 psi, with production originating from the C-Sands reservoir in the Lower Goru Formation.
The well was drilled to a total depth of 2,100 metres using OGDCL’s in-house technical expertise, highlighting the company’s capability in efficient development drilling.
This find is classified as a development well in the existing Dars West field, where previous wells such as Dars West-1 and Dars West-2 have contributed to production.
Earlier wells in the area, including Dars West-2, have shown revival potential, with one contributing around 200 BPD of oil and 8 MMSCFD of gas after interventions in late 2024.
The Lower Goru Formation has proven to be hydrocarbon-rich in this region of Sindh, reinforcing the area’s untapped potential despite broader national trends of reserve depletion.
Pipeline laying work is actively underway to link the Dars West-3 well to the KPD-TAY processing plant.
Once connected, the gas will undergo processing before injection into the Sui Southern Gas Company Limited (SSGCL) network, directly supporting national energy distribution.
This integration is expected to enhance supply to southern regions and help alleviate some pressure on imported liquefied natural gas (LNG), which has become a costly alternative.
OGDCL, as Pakistan’s largest exploration and production entity, holds a 77.5 percent working interest in the Dars West D&PL joint venture, with Government Holdings (Private) Limited (GHPL) owning the remaining 22.5 percent.
The company has maintained a leading role in domestic hydrocarbons, operating numerous fields and consistently pursuing optimization and new developments.
Recent months have seen OGDCL report multiple discoveries and production enhancements across provinces, including a separate oil and gas find in Khyber Pakhtunkhwa shortly after this announcement.
Such successive finds underscore efforts to counter the natural decline in mature basins and add to the national reserves base.
Pakistan’s natural gas shortfall has persisted for years, with production unable to match rising consumption driven by industrial, power, and domestic needs.
Projections indicate continued decline without accelerated exploration, with recoverable reserves depleting and demand pressures mounting.
Discoveries like Dars West-3, though modest in scale compared to historical giants, contribute incrementally to mitigating imports and supporting energy security.
Experts view these as vital steps in sustaining supply while broader policy reforms address exploration incentives and investment challenges.
The announcement also reflects OGDCL’s focus on the prolific Lower Goru play in Sindh, where multiple reservoirs have yielded results over time.
By confirming hydrocarbon potential in the C-Sand, the well strengthens confidence in further appraisal and development in the Dars West area.
As pipeline connections progress, the well’s output is poised to enter the production phase soon, adding measurable volumes to the SSGCL system.
This development aligns with national goals to prioritize indigenous resources amid volatile global energy prices.
Stakeholders anticipate that continued success in such fields could help stabilize supply and reduce fiscal burdens from imports.
The discovery reinforces Sindh’s importance as a key hydrocarbon province, where OGDCL’s operations have historically delivered substantial output.
Overall, the Dars West-3 results provide a positive signal for Pakistan’s upstream sector, demonstrating that targeted development can still yield meaningful additions despite sector-wide challenges.