The Oil and Gas Development Company Limited (OGDCL) has signed a landmark agreement with French company SNF for the installation of advanced water injection systems in Sindh.

The project will be implemented at the Kunner and Pasakhi oil fields in the Hyderabad district. It is expected to increase oil production by around nine million barrels and gas output by up to three billion cubic feet.

OGDCL estimates the project will generate approximately $460 million in additional revenue.

The agreement was signed at a ceremony attended by Federal Minister for Energy Ali Pervaiz Malik, OGDCL Managing Director and CEO Ahmed Hayat Lak, and French Ambassador to Pakistan Nicolas Galey.

The project will be completed in three phases, including system installation, two years of operation and maintenance, and subsequent transfer of technology.

OGDCL said the project would meet environmental standards, with treated water reinjected into reservoirs.