OGDC faces hurdles in unlocking Baragzai oil potential: report

OGDC says infrastructure limits at its Baragzai field need to be resolved before further wells can deliver more production, Business Recorder reported on Friday, citing an Arif Habib Limited analyst briefing note. Management also identified Rajian’s potential at 8,000 to 10,000 barrels per day, but said the heavy crude will require arrangements with suppliers and refineries before output can be expanded. OGDC expects progress on Rajian over the coming 1-1.5 years.

The company kept its FY27 oil and gas growth outlook at 8-10% year-on-year, against natural declines of around 16%, operational difficulties and pipeline interruptions. It expects yearly capital expenditure to exceed Rs100 billion over the next two years, while spending could vary by -25% depending on tenders and supply costs. OGDC is also assessing lithium extraction at Wahid Bakhsh-01, with results from work with INSTEC expected within three months, and Turkish Petroleum is joining its offshore exploration venture, where seismic work is due to start in the next couple of weeks.