Oil and Gas Development Company Limited has signed a significant agreement with French company SNF S.A. The partnership aims to unlock an estimated $460 million from mature oil fields.
The agreement focuses on installing advanced water injection systems at the Kunnar and Pasakhi oil fields. These fields have produced for years but still hold untapped potential.
Therefore, the initiative seeks to increase output through modern recovery techniques.
Expected Boost in Oil and Gas Production
According to the company’s statement, the project could add around 9 million barrels of oil. In addition, it may produce nearly 3 billion cubic feet of gas over the fields’ lifespan.
This improvement will enhance the recovery factor by 8 to 10 percent. As a result, OGDC can extract more resources from existing reservoirs.
Instead of exploring new sites, the company will optimize current assets. Consequently, this approach reduces risk and maximizes efficiency.
Three-Phase Implementation Plan
The project will move forward in three structured phases. The first phase includes installation and commissioning of the water injection system. This stage will take approximately nine months.
Next, a two-year operations and maintenance period will follow. During this time, technical support and training will be provided to OGDC staff.
Afterward, operational control will transfer fully to OGDC. Therefore, the company will manage the system independently.
The facilities are designed to operate for nearly 20 years. This long-term plan reflects confidence in sustainable output growth.
High-Level Participation at Signing Ceremony
The agreement was signed in Islamabad during a formal ceremony. Federal Minister for Energy Ali Pervaiz Malik attended the event.
OGDC Managing Director Ahmed Hayat Lak also participated. Moreover, French Ambassador Nicolas Galey was present along with senior officials.
Their presence highlighted the strategic importance of the partnership. It also underscored growing cooperation between Pakistan and France in the energy sector.
Strengthening Production Efficiency
The OGDC SNF oil recovery deal forms part of a broader effort to enhance production efficiency. Mature oil fields often experience declining output over time. However, modern technology can reverse this trend.
Advanced water injection systems help maintain reservoir pressure. As a result, more oil and gas can be extracted effectively.
This strategy supports energy security while improving financial returns. Furthermore, it enables better utilization of existing infrastructure.
A Strategic Step for Pakistan’s Energy Sector
The agreement represents a forward-looking investment in domestic energy resources. By increasing recovery rates, OGDC aims to strengthen national production capacity.
At the same time, the partnership introduces international expertise into local operations. Consequently, knowledge transfer and technical training will benefit the workforce.
If projections hold true, the project could generate substantial additional revenue. More importantly, it signals a shift toward smarter resource management.
Overall, the OGDC SNF oil recovery deal demonstrates how innovation can unlock value from mature fields. Through technology and collaboration, aging assets may deliver renewed economic returns.
