In a significant milestone for Pakistan’s domestic energy infrastructure, Oil and Gas Development Company Limited (OGDCL) has officially announced the successful commissioning and commencement of first gas from the Lundali-1 well in the Sukhpur-II Block, situated in Sindh Province. Pumping an initial production flow of 10 million standard cubic feet per day (MMscfd) into the national grid via Sui Southern Gas Company Limited (SSGC), the operationalisation of the well aims to alleviate pressing gas deficits in southern urban and industrial hubs. The formal regulatory disclosure, filed with both the Pakistan Stock Exchange (PSX) and the London Stock Exchange (LSE) on September 09, 2026, details a multi-corporate joint venture effort focused on augmenting domestic hydrocarbon extraction.
Technical Specifications and Field Operational Performance
The commissioning of the Lundali-1 well represents a vital contribution to Pakistan’s indigenous hydrocarbon yield, delivering an steady supply flow under substantial wellhead pressure. According to the official material disclosure submitted to market regulators by OGDCL, the well achieved first gas on September 06, 2026, following extensive surface facility setup, safety checks, and pipeline integration tests.
Current field telemetry confirms that Lundali-1 is operating at a stable production rate of 10 MMscfd of natural gas, with wellhead pressure measured at 2,000 pounds per square inch (psi). The entire output generated from the field is being injected directly into the transmission network operated by Sui Southern Gas Company Limited (SSGC).
This stable pressure profile highlights strong reservoir dynamics within the Sukhpur-II Block, providing necessary operational reliability for downstream distribution. By injecting raw gas directly into SSGC’s regional trunk lines, the joint venture partners are effectively bypassing potential transport bottlenecks, ensuring immediate utilization across local residential, commercial, and industrial segments in Sindh.
Joint Venture Ownership Structure and Corporate Governance
The development and commercialization of the Sukhpur-II Block rely on a diverse consortium of state-owned and international energy entities. The operational responsibility is spearheaded by Prime Global Energies Limited, which holds a 25 percent working interest as the designated operator of the block.
The largest operational stakes in the license are held equally by Pakistan’s leading state-backed exploration champions:
- Oil and Gas Development Company Limited (OGDCL): Holds a 30% working interest.
- Mari Energies Limited: Holds a 30% working interest.
- Prime Global Energies Limited: Holds a 25% working interest (Operator).
- Turkish Petroleum Overseas Company Limited: Holds a 15% working interest.
The official communication, signed by OGDCL executive Wasim Ahmad, confirms that the regulatory filing was performed in strict compliance with Section 96 of the Securities Act, 2015, and Clause 5.6.1(a) of the Rule Book of the Pakistan Stock Exchange. This transparent corporate alignment highlights robust public-private and international partnership models in tapping complex onshore basins across Pakistan.
Regulatory Framework and Exploration License Background
The successful transition of the Lundali-1 well from exploratory drilling to active commercial stream follows an updated regulatory framework governing the Sukhpur-II Block (Block No. 2568-23). The Petroleum Concession Agreement (PCA) and Exploration Licence for the block officially took effect on December 02, 2025.
Although Lundali-1 was initially drilled under a previous joint venture arrangement, subsequent commercial evaluations and operational restructuring enabled the present joint venture framework to successfully tie in the well head, optimize surface equipment, and bring the asset online.
This rapid turnaround—bringing the well onto the production stream within nine months of the concession’s effective license date—underscores the joint venture’s commitment to streamlining field development timelines. Accelerated field completions of this nature remain pivotal for maintaining upstream sector momentum and encouraging secondary investment in prospective contiguous blocks across Sindh.
Economic and Strategic Impact on Pakistan’s Gas Supply
The introduction of 10 MMscfd of indigenous gas comes at a crucial period for Pakistan’s national energy landscape, which continues to encounter severe structural shortfalls and foreign exchange constraints tied to liquefied natural gas (LNG) imports.
Every addition of domestic natural gas directly offsets reliance on expensive spot-market LNG cargoes, yielding substantial savings in foreign currency reserves. For SSGC, receiving 10 MMscfd of pipeline-quality gas at 2,000 psi provides immediate supply relief, enhancing system pressure across downstream networks serving Karachi, Hyderabad, and surrounding industrial corridors.
Industry analysts point out that while 10 MMscfd represents an incremental addition against nationwide structural deficits, cumulative production additions from blocks like Sukhpur-II are vital for slowing natural baseline field decline in mature basins. Furthermore, ongoing testing and potential appraisal drilling within the Sukhpur-II Block could unlock secondary commercial structures, expanding the long-term production footprint of the consortium.
- Location & Asset: Lundali-1 Well, Sukhpur-II Block (2568-23), Sindh Province.
- First Gas Date: September 06, 2026.
- Production Volume: 10 Million Standard Cubic Feet per Day (MMscfd).
- Wellhead Pressure: 2,000 pounds per square inch (psi).
- Offtaker Network: Sui Southern Gas Company Limited (SSGC).
- Operator: Prime Global Energies Limited (25% Working Interest).
- Joint Venture Partners: Oil and Gas Development Company Limited (OGDCL – 30%), Mari Energies Limited (30%), Turkish Petroleum Overseas Company Limited (15%).
- Effective License Date: December 02, 2025
The successful commencement of gas production from the Lundali-1 well in Sindh’s Sukhpur-II Block demonstrates the tangible benefits of synchronized upstream collaboration between state-owned market leaders and international exploration partners. By delivering 10 MMscfd of indigenous natural gas straight to SSGC’s network, OGDCL, Mari Energies, Prime Global Energies, and Turkish Petroleum Overseas Company are actively strengthening Pakistan’s domestic energy security. As energy demand escalates, the rapid development of local hydrocarbon discoveries remains the cornerstone of Pakistan’s sustainable economic stabilization strategy.
