OGDCL MD gets Rs4.83m basic pay plus allowances, NA told

Islamabad: The salary and benefits of Oil and Gas Development Company Limited Managing Director and Chief Executive Officer Ahmed Hayat Lak came under focus in the National Assembly, where the government informed lawmakers that his basic monthly pay is Rs4,838,710, along with a 45 percent house rent allowance, 10 percent utilities and other benefits allowed under company policy.

The details were shared in response to a question by Member National Assembly Sher Afzal Khan. The Minister for Energy, Petroleum Division, Ali Pervaiz, informed the House that the Board of Directors approved Ahmed Hayat Lak’s appointment as Managing Director and Chief Executive Officer of OGDCL under the Companies Act, 2017, the State Owned Enterprises Governance and Operations Act, 2023, the Articles of Association of the Company and the State-Owned Enterprises Ownership and Management Policy, 2023.

According to the official reply, the OGDCL chief’s monthly package reaches around Rs7.5 million before other admissible benefits are added. The government said his appointment terms, conditions and remuneration were approved by the Board of Directors under the legal and policy framework.

The Petroleum Division also shared OGDCL’s performance record, stating the company made 19 oil and gas discoveries across Sindh, Punjab and Khyber Pakhtunkhwa since February 2023. These discoveries carry an estimated cumulative production potential of 17,123 barrels per day of oil and 151 million standard cubic feet per day of gas.

The government said major multi zone discoveries were recorded at Baragzai X 01, with tested cumulative production potential of around 15,005 barrels per day of oil and 45.36 million standard cubic feet per day of gas.

Year wise, OGDCL made five discoveries in FY 2023–24, with 481 barrels per day of oil and 29.66 million standard cubic feet per day of gas. It made five discoveries in FY 2024–25, with 947 barrels per day of oil and 34.49 million standard cubic feet per day of gas. In the first nine months of FY 2025–26, it made nine discoveries, with 15,695 barrels per day of oil and 86.95 million standard cubic feet per day of gas.

The official data showed daily import substitution of Rs1,196.63 million from these discoveries. This included Rs283.48 million in FY 2023–24, Rs279.70 million in FY 2024–25 and Rs633.45 million in the first nine months of FY 2025–26.

OGDCL’s reserve replacement ratio was recorded at 56 percent in FY 2023–24, 167 percent in FY 2024–25 and 153 percent in the first nine months of FY 2025–26. The company’s reserve life increased from 14 years to 17 years.

The reply said OGDCL brought 34 wells and fields into production. In FY 2022–23, five wells produced 990 barrels per day of oil and 18.28 million standard cubic feet per day of gas in Sindh and Khyber Pakhtunkhwa. In FY 2023–24, 11 wells produced 4,398 barrels per day of oil and 43.23 million standard cubic feet per day of gas in Sindh, Khyber Pakhtunkhwa and Balochistan.

In FY 2024–25, eight wells produced 744 barrels per day of oil and 41.80 million standard cubic feet per day of gas in Sindh, Khyber Pakhtunkhwa and Balochistan. In FY 2025–26, up to April, 11 wells produced 9,734 barrels per day of oil and 74.25 million standard cubic feet per day of gas in Sindh, Khyber Pakhtunkhwa, Punjab and Balochistan.

The government said OGDCL’s oil production crossed 40,000 barrels per day after 6.5 years and reached 42,000 barrels per day, while processed gas reached 830 million standard cubic feet per day. The company carried out more than 65 rig workovers and over 295 rigless interventions, adding around 17,000 barrels per day of oil and 90 million standard cubic feet per day of gas.

The reply said Jand 1 well’s gas production increased from around 7 million standard cubic feet per day to about 21 million standard cubic feet per day after recompletion and stimulation. At Rajian Field, OGDCL revived shut-in wells, achieved a nearly threefold production increase from existing producers, planned seven new development wells and set a production target of 15,000 barrels per day by FY 2027–28.

The company also commissioned Bettani Early Production Facilities, while the Jhal Magsi Development Project was brought on stream with about 14 million standard cubic feet per day of gas along with condensate. The Dakhni Compression Project added production of gas, oil, liquefied petroleum gas and sulphur, while the Khewari Development Project has production potential of about 10 million standard cubic feet per day of gas.

OGDCL is also working on shale and tight gas. The KUC 1 horizontal exploratory well is targeted in FY 2025–26. The shale programme includes three pilot exploratory wells and four appraisal wells in the Kunnar Pasakhi and Sinjhoro West areas. For tight gas, a basin wide study has been expanded from 1,500 square kilometres to an additional 2,600 square kilometres.

On sustainability, OGDCL signed the Oil and Gas Decarbonization Charter at COP 28, published its first environmental, social and governance report, partnered with OGCI and the United Nations Environment Programme, and became the only Pakistani entity to join OGMP 2.0. It is also using satellite-based methane monitoring through GHG-Sat and preparing a methane emissions inventory through the MIST tool, with pilot completion targeted by May 2026.

The company was awarded seven new exploration blocks and advanced offshore exploration, including Abu Dhabi Offshore Block 5. It also entered cooperation with Turkish Petroleum Overseas Company, SOCAR of Azerbaijan and Zarubezhneft of Russia.

OGDCL ranked third among 69 public listed companies in the Transparency in Corporate Reporting Assessment 2024 by Transparency International Pakistan, scoring 93.09 percent. It was also the highest-ranked public sector company.

Under its indigenization drive, OGDCL worked on local manufacturing and refurbishment of pipes, valves, compressor components, turbine parts and electronic systems. Projects included Dhodak Refinery, an API certified workshop facility, rig refurbishment, pipe conversion and portable rig development with LUMS Energy Institute. These efforts saved more than Rs860 million and 3.05 million dollars in foreign exchange.

The company’s share price rose from Rs78 in June 2023 to Rs334 in January 2026. Year wise, the share price stood at Rs78 in 2022–23, Rs135.37 in 2023–24, Rs220.56 in 2024–25 and Rs270.64 in the first nine months of 2025–26. Dividend per share rose from Rs8.55 to Rs10.10, Rs15.05 and Rs11 during the same periods, while dividend payout increased from 16 percent to 21 percent, 38 percent and 41 percent.