Oil and Gas Development Company Limited (OGDCL) announced recently that it has completed and commissioned the Jhal Magsi Development Project in Balochistan, a big milestone to the domestic energy production in Pakistan.
The Jhal Magsi field is the second field, and it was first discovered in 2003 but has two wells in production in which three wells have been drilled. The construction of the project commenced in February 2024, following a series of special-incentive measures approved by the Government of Pakistan to drive project schedules forward, with special incentives such as a switch to the Marginal Field Gas Pricing Policy rather than the 1997 Petroleum Policy. Although there are logistical and even technical challenges in the remote location, the project was implemented under fast-track basis.
Current gas rate in the field is 14 million standard cubic feet per day (MMSCFD) and 45 barrels per day (BPD) of condensate. This gas has been injected into the Sui Southern Gas Company Limited (SSGCL) system with a newly laid 98 km pipeline that has made its supplies to the consumers stable. According to project facilities, there are Amine Unit, Dehydration Unit, Hot Oil Package, power system and gas gathering facilities.
The joint venture (JV) runs the project with OGDCL having a 56 percent working interest, Pakistan Oilfields Limited (POL), 24 and Government Holdings Private Limited (GHPL), 20.
AKD Securities Research suggests that the commissioning of Jhal Magsi will have a total EPS impact of PKR 0.37/share and annualized EPS impact of PKR 2.43/share on OGDCL and POL respectively. The trade offered its reiteration of ‘BUY’ call on OGDCL to discount a target price of PKR 371/share as at December 2025 based on its robust production track record, its future exploration potential in an environment of heightened liquidity, its 8.33 % interest in the Reko Diq Mining Project, offshore block interest in Abu Dhabi Offshore Block-5, an increased cash dividend distribution, and possible JV arrangements with U.S. companies to exploit the vast reserves of shale gas in Pakistan.
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Likewise, there has been a recommendation of a BUY rating on POL with a target price of PKR 800/share as a record of a December 2025 estimate, and an estimated FY26 dividend yield at 12.4%.
Upon successful inception of the Jhal Magsi Development Project, OGDCL has further cemented its meteoric rise to rule as the biggest and most dependable supplier of energy in Pakistan, whilst playing an essential role towards the emerging gas energy requirements in the nation with focus towards environmentally cleaner sources of energy, which is the gas reserves in Pakistan.
