OGDCL Receives First Interest Payment from PHL

Oil and Gas Development Company Limited (OGDCL), Pakistan’s premier exploration and production firm, has received an initial interest payment amounting to Rs7.73 billion from Power Holding (Private) Limited (PHL). This payment is part of the government’s initiative to resolve circular debt issues.

The E&P company communicated this development in a notification submitted to the Pakistan Stock Exchange (PSX) on Monday.

According to the notice, “Under the circular debt resolution strategy, OGDCL has been credited with the first interest payment of Rs7.725 billion by PHL, adhering to the mechanism sanctioned by the Government of Pakistan (GOP).”

The notification further stated, “As previously communicated, the total interest of Rs92 billion is scheduled for repayment in twelve equivalent monthly installments, beginning in July 2025.”

OGDCL noted that the receipt of this initial payment signifies advancement in the Government of Pakistan’s efforts to tackle circular debt challenges within the energy sector.

Last June, the government approved the disbursement of Rs82 billion to OGDCL as part of the circular debt management plan. This amount represents the principal investment of the company in Privately Placed Term Finance Certificates (PPTFC) issued by PHL.

In addition to the principal, the government authorized the repayment of Rs92 billion in interest, to be distributed in twelve equal monthly installments commencing in July 2025.

As part of the settlement, OGDCL, following government directives, consented to waive Rs72 billion related to liquidated damages.

OGDCL was officially established on October 23, 1997, in accordance with the Companies Ordinance, 1984 (now replaced by the Companies Act, 2017). The company was formed to engage in the exploration and development of oil and gas resources, encompassing the production and sale of oil and gas, along with associated activities previously managed by the Oil and Gas Development Corporation, initially founded in 1961.