OGDCL Announces Major Oil Discovery in Sindh’s Tando Allah Yar Field
In a significant boost to Pakistan’s energy sector, the Oil & Gas Development Company Limited (OGDCL) has confirmed a new oil discovery in Sindh. The discovery was made at the Chakrun-1 exploratory well, located in the Chakar–one Oil Field within Tando Allah Yar district. This marks OGDCL’s 13th successful oil find under the Tando Allah Yar Exploration License.
Chakar–One Well Delivers Promising Results
According to the official statement by OGDCL, the company holds a 95% operational stake in the exploration, while Government Holdings (Private) Limited (GHPL) holds a 5% carried-interest share. Drilling commenced on June 2, 2025, and reached a depth of 1,926 meters, targeting the Upper Shale of the Lower Goru Formation.
Reservoir Evaluation Services (RES) data and wireline log analysis led to a Drill Stem Test (DST) in the B-Sand layer. The results were encouraging, with the well producing 275 barrels of oil per day (BOPD) through a 32/64-inch choke at a wellhead flowing pressure of 400 psi using an Electrical Submersible Pump (ESP).
Strengthening Pakistan’s Energy Independence
This new discovery strengthens OGDCL’s role in reducing Pakistan’s reliance on imported oil. In the year ending June 30, 2025, Pakistan imported $11.3 billion worth of oil—nearly 20% of the country’s total import bill. Discoveries like Chakrun-1 could ease pressure on foreign exchange reserves while boosting domestic production.
US-Pakistan Oil Partnership on the Horizon
The announcement coincides with a broader development: U.S. President Donald Trump revealed a U.S.-Pakistan oil partnership. “We have just concluded a deal with the country of Pakistan, whereby Pakistan and the United States will work together on developing their massive oil reserves,” Trump posted on social media.
Washington is expected to announce the U.S.-based oil company that will spearhead the collaboration, which is seen not just as an economic partnership but also as a geopolitical move to counter China’s growing influence in Pakistan.
READ MORE: PM Shehbaz Thanks Trump for Historic US-Pakistan trade agreement on Oil Development
Offshore Exploration and Shale Oil Potential
While Pakistan’s offshore oil exploration efforts have largely been unsuccessful, the country still holds conventional crude oil reserves estimated between 234 and 353 million barrels. Moreover, a 2015 U.S. Energy Information Administration (EIA) study identified 9.1 billion barrels of technically recoverable shale oil, though extraction has not yet begun on a commercial scale.
With increasing foreign interest and domestic exploration success like Chakrun-1, Pakistan may soon witness a shift in its energy landscape.
Geopolitical Impact and Strategic Diplomacy
The OGDCL discovery also comes amid improved diplomatic ties between Pakistan and the United States. Trump’s proactive foreign policy has included efforts to renegotiate trade deals and mediate regional conflicts. His administration claims credit for brokering a ceasefire between Pakistan and India in May 2025 and continues to push for a rebalanced relationship in South Asia.
Pakistan has welcomed this renewed engagement, even nominating Trump for a Nobel Peace Prize. The oil deal and related energy cooperation are viewed as critical components of this shifting strategic alignment.
