OGDC to Recover Rs. 80 Billion from Uch Power Plant as Circular Debt Resolution Advances
The Oil & Gas Development Company Limited (OGDC) is set to recover Rs. 80 billion from the Uch Power Plant, marking a significant step in the government’s ongoing power sector circular debt resolution. The development was shared during the Pakistan Day Conference 2025 for foreign investors, organized by Topline Securities.
During the event, OGDC’s CFO, Mr. Anas Farook, highlighted the company’s financial recovery efforts and operational strategies. He confirmed that OGDC expects to receive the second interest installment of Rs. 7.7 billion on Term Finance Certificates (TFCs) issued by the government within a week. This will bring the outstanding interest amount to Rs. 76.6 billion, payable over the next 10 months.
The company has also disbursed Rs. 42 billion in dividends to the government, representing 10% of its shareholding, while actively working to settle other liabilities.
To address the issue of forced gas curtailment, OGDC is collaborating with the government on multiple solutions. These include selling gas to third parties, diverting cargoes, and coordinating with SNGPL to redirect curtailment away from high-output fields like Nashpa.
On the exploration front, OGDC remains focused on long-term growth. The company’s management revealed that it has a combined oil and gas reserve life of 14 years, with a nearly 100% reserve replacement ratio, ensuring sustainable production. Plans are also in place to boost oil output through Electrical Submersible Pumps (ESPs) and other advanced recovery techniques, which could increase extraction efficiency from 30% to as high as 70%.
Additionally, OGDC has signed a Memorandum of Understanding (MoU) with Turkish Petroleum for offshore blocks and is holding discussions with several US-based companies as part of the ongoing offshore bidding round. Meanwhile, international lenders for the Reko Diq project are in the final stages of approvals, with financial close expected by late September or early October.
These strategic initiatives highlight OGDC’s role as a key player in stabilizing Pakistan’s energy sector while ensuring long-term growth and sustainability.
