Project Estimated to Generate USD 460 Million in Revenue Through Enhanced Oil and Gas Production
ISLAMABAD, February 17, 2026: Oil and Gas Development Company Limited (OGDC),
Pakistan’s leading exploration and production company, on Tuesday signed a landmark contract
with SNF S.A., a French specialty chemical company and world leader in polyacrylamide
production, for the installation and operation of advanced Water Injection Systems (WIS) at its
Kunnar and Pasakhi oil fields located in Hyderabad district, Sindh. The signing ceremony was
held at the OGDC Head Office in Islamabad, marking a significant milestone in the company’s
efforts to enhance production performance and promote sustainable energy development. The
signing ceremony was attended by Federal Minister for Energy (Petroleum Division) Ali Pervaiz
Malik, MD/CEO OGDC Ahmed Hayat Lak, French Ambassador to Pakistan Nicolas Galey,
along with senior officials from OGDC and SNF.
The project aims to enhance reservoir pressure, optimise oil recovery, and ensure sustainable
production performance through the world’s latest water injection technology and global
expertise from SNF. The project will be completed in three phases. The first phase will cover
installation and commissioning over a period of nine months, including mobilisation, installation,
commissioning and testing of the facilities. This will be followed by a two-year operations and
maintenance phase, during which O&M services will be provided along with structured training
for OGDC professionals. After the completion of the O&M period, the technology and
operational control will be transferred to OGDC, allowing the company to independently operate
the facilities using the expertise developed during the collaboration. The designed operational
life of the installed facilities is approximately 20 years.
The project is projected to enhance oil production by approximately 9 million barrels and
increase gas production by 3 billion cubic feet. It is also projected to improve the recovery factor
of the fields by 8 to 10 percent. The recovery factor refers to the percentage of oil that can be
extracted from a reservoir compared to the total volume originally present. With an estimated
additional revenue generation of USD 460 million over the life of the fields, the project offers
strong economic returns.
The initiative also carries significant environmental benefits. By reinjecting treated produced
water into reservoir zones, the project ensures safe disposal and reduces environmental risks. It
also aligns with sustainable operating practices and international environmental standards.
The collaboration underscores OGDC's commitment to operational excellence, technological
advancement, and long-term value creation in Pakistan's energy sector through partnerships with
OIL & GAS DEVELOPMENT COMPANY LIMITED
EXTERNAL COMMUNICATIONS DEPARTMENT
world-leading service providers. The partnership reflects OGDC’s continued focus on
strengthening domestic hydrocarbon production while adopting the latest, efficient, and
environmentally responsible technological solutions for Pakistan’s energy sector.
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