ISLAMABAD: The Oil and Gas Development Company Limited (OGDCL) has uncovered a major crude oil theft operation and an illegal refinery in Sindh’s Tando Allahyar district and sought strict legal action against those involved.
According to officials, the theft involved illegal tapping of the Kunnar Pasakhi Deep (KPD)-TAY oil field pipeline near Tando Jam, close to the Machhi Hotel police check post. The stolen crude oil was being transported and processed at an illegal refinery before being sold in the local market.
The OGDCL initiated a coordinated investigation in January 2026, working closely with intelligence and law enforcement agencies to trace the network. After weeks of surveillance and technical tracking, the company successfully identified tapping points along the pipeline and the location of the illegal refining facility.
A raid was conducted in the Siri area of New Hyderabad City involving eight police vehicles, five OGDC vehicles, and additional support from an intelligence agency. During the operation, authorities recovered refining equipment and a large quantity of stolen crude oil. The culprits fled the scene, leaving behind five motorcycles.
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Tando Jam police have registered a case against the thieves’ gang leader, Wazir Daudani, along with his associates Ghani Daudani, Badshah Nizamani, Mabaan Nizamani, and six others, according to a copy of the FIR.
The FIR was lodged on the complaint of an OGDCL security supervisor at Pasakhi Oil Field. Police also seized three Suzuki vehicles and a Mazda truck carrying stolen crude oil.
The accused were operating an illegal refinery where crude oil stolen from OGDCL pipelines was being processed and sold, posing serious safety and environmental risks. Residents also expressed serious concerns over the unsafe transportation and handling of oil.
The OGDCL has called for strict action against the culprits, including proceedings under Section 7 of the Anti-Terrorism Act (ATA), citing the scale of the operation and its threat to critical national infrastructure.
The OGDCL’s proactive efforts to trace and dismantle the theft network have prevented significant financial losses to the national exchequer at a time of rising energy costs due to the regional conflict. OGDCL reaffirmed its commitment to safeguarding national resources and enhancing indigenous energy production to reduce reliance on imports and save foreign exchange reserves.
Copyright Business Recorder, 2026
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