OGDCL plans production start in ADNOC’s block by 2027

In Islamabad, on April 10, 2025, Oil and Gas Development Company Ltd (OGDCL) announced its expectations to begin production in Abu Dhabi's Offshore Block-5 in collaboration with the Abu Dhabi National Oil Company (ADNOC) by the year 2027. This partnership, established in 2021, aims to explore and develop untapped oil and gas resources in the block. The CEO of OGDCL, Ahmed Hayat Lak, indicated that while the evaluation of reserves is ongoing, there is a strong belief within the company that they can commence production as projected. Furthermore, OGDCL expressed its intention to increase domestic oil and gas production. In the next three years, the company aims to elevate its oil production to over 50,000 barrels per day, up from the current 37,000 barrels per day. Similarly, they plan to increase gas output to approximately 1 billion cubic feet, a notable rise from around 800 million cubic feet. This ambitious growth is fueled by improvements in pricing policies implemented by the government, providing a fertile ground for investment in the sector. To navigate this growth, OGDCL has developed a comprehensive business strategy that focuses on both immediate and long-term investments, particularly in tight gas. This diversified approach reflects the company’s adaptability to changing market conditions and its commitment to enhancing resource availability in both domestic and international markets. The developments concerning offshore oil production in Abu Dhabi and the growth projections for local production highlight the increasing significance of OGDCL in the broader energy landscape. As they work toward these goals, it will be crucial to monitor how these plans impact oil and gas accessibility within the region and contribute to economic stability and growth.