Oil and Gas Development Company Limited (OGDC) has signed a contract with US energy technology company Baker Hughes to increase oil and gas production from its mature fields, as Pakistan continues efforts to raise domestic hydrocarbon output and reduce dependence on imported energy. Under the agreement, Baker Hughes will deploy its Mature Assets Solutions to help OGDC identify additional production opportunities and address operational challenges across its ageing oil and gas wells. The initiative forms part of OGDC’s broader Production Optimization Drive, which is focused on maximizing production from the company’s existing asset base.
The contract was signed at OGDC’s headquarters in Islamabad in the presence of Special Secretary Petroleum Mirza Nasiruddin Mashood Ahmad and US Chargé d’Affaires Natalie A. Baker. OGDC Managing Director and CEO Ahmed Hayat Lak, along with senior officials from OGDC and Baker Hughes, attended the signing ceremony. The agreement brings together OGDC’s extensive portfolio of mature oil and gas assets with Baker Hughes’ technical expertise and energy technologies, with the objective of identifying ways to improve recovery from fields where production has naturally declined over time.
OGDC currently operates 18 major mature assets, comprising 12 oil fields and six gas and condensate fields. The company produces more than 40,000 barrels of crude oil per day, along with 815 million standard cubic feet of natural gas per day. Its current production portfolio also includes 780 metric tonnes of LPG per day and 80 metric tonnes of sulfur per day. With a substantial share of its operations focused on established fields, improving recovery from existing assets represents an important opportunity to increase domestic production without relying solely on the development of new fields.
Under the agreement, Baker Hughes will provide technical expertise, advanced technologies and integrated capabilities to support OGDC in improving recovery from its established fields. The company will work to identify additional production opportunities and address operational challenges associated with mature oil and gas wells. The initiative will also examine potential applications of new technologies that could improve the performance of Pakistan’s mature energy assets and help extend their productive capacity.
OGDC’s Production Optimization Drive is focused on maximizing output from the company’s existing asset base, making the partnership with Baker Hughes part of a wider effort to improve production efficiency. Mature fields can experience naturally declining output over time, requiring additional technical interventions, improved operating practices and advanced recovery technologies to maintain or increase production. Through the new agreement, OGDC aims to assess opportunities across its mature portfolio and use additional technical capabilities to improve recovery where commercially and technically feasible.
Ahmed Hayat Lak, Managing Director and CEO of OGDC, said the company was working with global service providers to optimize production and strengthen Pakistan’s energy security. The partnership with Baker Hughes is intended to support this effort by bringing additional technical capabilities and advanced technologies to OGDC’s mature assets. The company is seeking to make greater use of its existing resources while improving production from fields that have already been operating for an extended period.
Special Secretary Petroleum Mirza Nasiruddin Mashood Ahmad said the partnership would contribute to efforts aimed at increasing indigenous oil and gas production. Higher domestic hydrocarbon output could help Pakistan reduce its requirement for imported energy and strengthen the availability of locally produced oil and gas. The agreement therefore forms part of broader efforts within the petroleum sector to improve the utilisation of existing domestic resources and address challenges associated with declining production from mature fields.
US Chargé d’Affaires Natalie A. Baker described the agreement as a milestone in the US Pakistan energy partnership. She said cooperation between OGDC and Baker Hughes could contribute to the shared objective of strengthening Pakistan’s energy security. The participation of US and Pakistani officials at the signing ceremony also reflects the wider importance attached to technical cooperation in the energy sector, particularly in areas involving production improvement and the application of advanced technologies.
The project is expected to focus on maximizing recovery from OGDC’s existing oil and gas fields while exploring new technology applications for mature assets. Rather than relying only on new exploration, the initiative seeks to identify additional production opportunities within fields already operated by the company. This approach could allow OGDC to make greater use of established infrastructure and resources while addressing technical and operational issues that have emerged as the fields have matured.
For Pakistan’s energy sector, improving production from mature oil and gas assets remains important as the country seeks to strengthen domestic supply and reduce exposure to imported energy. OGDC’s agreement with Baker Hughes provides the company with access to additional technical expertise and advanced technologies as it pursues its Production Optimization Drive. The success of the initiative will depend on the production opportunities identified across the company’s mature fields and the effectiveness of the technologies and operational measures implemented under the agreement.
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