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Oil and Gas Development Company Ltd (OGDC) Expects to Recover Rs80 Billion from Uch Power Plant Amid Ongoing Circular Debt Resolution

Strategic Insights

— 2 min read

Pakistan's Oil and Gas Development Company Ltd (OGDC) is expected to recover approximately Rs80 billion from the Uch Power Plant as part of the country's ongoing circular debt resolution for the power sector. The company's CFO, Anas Farook, made this announcement at the Pakistan Day Conference 2025 hosted by Topline Securities, highlighting the company's efforts to resolve its outstanding liabilities and improve its financial position. In addition to the Uch Power Plant recovery, OGDC is also set to receive a second interest instalment of Rs7.7 billion against government-issued Term Finance Certificates (TFCs), reducing the outstanding interest to Rs76.6 billion payable over the next 10 months. The company is also exploring new partnerships, including a memorandum of understanding with Turkish Petroleum for offshore blocks, and investing in production-enhancing technology to boost recovery rates from 30 per cent to 70 per cent of reserves.

Key Takeaways:

  • OGDC expects to recover approximately Rs80 billion from the Uch Power Plant as part of the ongoing circular debt resolution for the power sector.
  • The company is set to receive a second interest instalment of Rs7.7 billion against government-issued Term Finance Certificates (TFCs), reducing the outstanding interest to Rs76.6 billion payable over the next 10 months.
  • OGDC has signed a memorandum of understanding with Turkish Petroleum for offshore blocks and is in ongoing discussions with several U.S.-based petroleum and services firms.
  • The company is investing in production-enhancing technology, including Electrical Submersible Pumps (ESPs), to lift recovery rates from 30 per cent to as much as 70 per cent of reserves.
  • OGDC's current oil and gas reserve life stands at 14 years, with an almost 100% reserve replacement ratio.
  • The company is also exploring third-party sales and working with SNGPL to divert curtailment towards lower oil-yielding fields to protect production from its Nashpa asset.
  • Most international lenders for the Reko Diq project are close to securing board approvals, with financial close expected by late September or early October.
  • ADNOC has exercised its option to acquire a 60 per cent stake in the Abu Dhabi Block.

Statistics:

  • Rs80 billion expected to be recovered from the Uch Power Plant
  • Rs7.7 billion second interest instalment to be received against government-issued Term Finance Certificates (TFCs)
  • Rs76.6 billion outstanding interest to be paid over the next 10 months
  • 30 per cent current recovery rate from reserves
  • 70 per cent target recovery rate from reserves through production-enhancing technology
  • 14 years current oil and gas reserve life
  • 100% reserve replacement ratio
  • 60% stake to be acquired by ADNOC in the Abu Dhabi Block

Sources:

  • [Pakistan Day Conference 2025 hosted by Topline Securities]
  • [Management statement by Anas Farook, CFO, Oil and Gas Development Company Ltd (OGDC)]
  • [Newspaper/Source]

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