Islamabad: Oil & Gas Development Company (OGDC) held a corporate briefing to outline its financial performance for FY26 and the first quarter of FY27, along with its strategic outlook. The session highlighted key developments in offshore exploration, lithium detection, and ongoing projects in Abu Dhabi and Pakistan, as well as production and pricing strategies.

According to JS Global, OGDC was awarded eight offshore exploration blocks, with Turkish Petroleum as a partner. Seismic work, initially postponed due to regional issues, is slated to commence soon. On the lithium front, the company identified international standard concentrations in its first geothermal well, with commercial viability assessments expected in three months.

In collaboration with Barrick, OGDC’s involvement in the Reko Diq project is under review, with senior management set to attend an investment forum in Pakistan. ADNOC has secured a 60% stake in an Abu Dhabi offshore block, becoming the operator with development plans underway, although supply-chain delays are anticipated.

OGDC reported a 13% year-over-year increase in crude oil production and a 14% rise in gas production during 1QFY27, despite facing security-related disruptions. The company plans to maintain crude oil production levels and anticipates an overall production growth of 8-10% in FY27.

The briefing also covered ongoing projects, including the spudding of two wells and the expected completion of the KPD-TAY compression project by March 2027. Management clarified its crude oil pricing strategy, which varies by field under different Petroleum Concession Agreements. Looking forward, the company expects the effective tax rate to remain consistent with 1QFY27 levels, maintaining a favorable outlook for investors.