OGDC foils Sindh oil theft operation, seizes illegal refinery and stolen crude

A large-scale crude oil theft network operating in Sindh’s Tando Allahyar district has been dismantled by the Oil and Gas Development Company Limited, which uncovered an illegal refinery processing stolen oil for local sale. OGDC has called for strict prosecution of the gang, citing severe risks to national infrastructure and public safety.

The stolen crude was illegally tapped from the Kunnar Pasakhi Deep (KPD)-TAY pipeline near Tando Jam, close to the Machhi Hotel police check post. Investigators said the oil was transported to the unlicensed refinery for processing before entering local markets.

The investigation, launched in January 2026, involved OGDC working closely with intelligence and law enforcement agencies. Weeks of surveillance and technical tracking allowed officials to locate the pipeline tapping points and the illicit refining site.

A raid in the Siri area of New Hyderabad City deployed eight police vehicles, five OGDC vehicles, and additional intelligence support. Authorities recovered refining equipment, a large quantity of crude oil, three Suzuki vehicles, a Mazda truck, and five motorcycles left behind by fleeing suspects.

Tando Jam police have registered an FIR against gang leader Wazir Daudani and associates Ghani Daudani, Badshah Nizamani, Mabaan Nizamani, plus six others, based on a complaint by an OGDC security supervisor at Pasakhi Oil Field.

Officials warned the illegal refinery posed serious safety and environmental risks, with residents expressing concern over crude handling and transport. OGDC recommended that the accused face proceedings under Section 7 of the Anti-Terrorism Act due to the operation’s scale and threat to critical energy infrastructure.

OGDC reaffirmed its commitment to protecting national energy resources, enhancing indigenous production, reducing import dependence, and conserving foreign exchange reserves.