ISLAMABAD: Pakistani state-owned Oil and Gas Development Company Limited (OGDCL) has signed an agreement with US energy technology giant Baker Hughes to revive its ageing oil and gas wells and raise domestic hydrocarbon production, an OGDCL spokesperson said on Wednesday.

The partnership comes as Pakistan seeks to reduce its dependence on imported energy amid a persistent gap between domestic production and demand. Under the agreement, Baker Hughes will deploy its Mature Assets Solutions (MAS) across OGDCL’s established fields, using technical expertise and advanced technologies to identify additional production opportunities and address operational challenges in assets experiencing natural decline, according to the companies.

Pakistan’s natural gas consumption averaged 2,316 million cubic feet per day (MMCFD) during July-March of fiscal 2025-26, while regasified liquefied natural gas (RLNG) consumption stood at 613 MMCFD, according to the latest Pakistan Economic Survey. Petroleum product demand rose 3.5% during the same period, while petroleum imports increased to 13.64 million tons from 13.17 million tons a year earlier, highlighting the country’s continued reliance on imported energy.

OGDCL said the deal covers OGDCL’s mature asset portfolio, which comprises 18 major assets, 12 oil fields and six gas and condensate fields, and the project would be carried out in two phases.

“The first phase will complete in one year, followed by the next phase,” the OGDCL spokesperson told Arab News. “The contract is first of its kind which is going to benefit around 20 MAS fields which will enhance the production capability appreciably.”

The contract was signed in Islamabad on Tuesday.

OGDCL currently produces more than 40,000 barrels of crude oil per day, 815 million standard cubic feet of natural gas per day, 780 metric tons per day (MTD) of liquefied petroleum gas and 80 MTD of Sulphur.

The company’s annual report says it plans to prioritize reservoir management and workover campaigns to sustain and enhance production from mature fields, while using technologies including artificial lift, compression and debottlenecking to optimize output.

The Baker Hughes partnership forms part of OGDCL’s broader Production Optimization Drive, which aims to maximize recovery from its existing portfolio rather than rely solely on new discoveries.

“Under the contract, Baker Hughes will bring its technical expertise, advanced technologies and integrated capabilities to support OGDCL in identifying production opportunities and addressing challenges across mature assets,” OGDCL said in a press statement on Tuesday.

Speaking on the occasion of the signing of the contract, OGDCL Managing Director Ahmed Hayat Lak said the company was pursuing meaningful engagements with world-class service providers to optimize its oil and gas production and strengthen Pakistan’s energy security. He expressed confidence that the project would be implemented efficiently to revitalize OGDCL’s mature assets.

Pakistan's Special Secretary for Petroleum Mirza Nasiruddin Mashood Ahmad said the partnership would contribute to Pakistan’s energy security by supporting efforts to maximize indigenous oil and gas production.

On the occasion, US Chargé d’Affaires Natalie Baker described the agreement as a "milestone" in the US-Pakistan energy partnership. She said energy was a foundation of economic security and that collaboration between OGDCL and Baker Hughes would advance the shared goal of strengthening Pakistan’s energy security.