OGDC Uncovers Massive Oil-Theft Network, Illegal Refinery Seized in Sindh

The Oil and Gas Development Company Limited (OGDC) has uncovered a large-scale crude oil theft operation and dismantled an illegal refinery in Sindh’s Tando Allahyar district, calling for strict legal action against those involved.

According to OGDC, the theft involved illegal tapping of the Kunnar Pasakhi Deep (KPD)-Tando Allahyar (TAY) oil pipeline near Tando Jam, close to the Machhi Hotel police check post.

The stolen crude oil was being transported to an unauthorized facility in the Siri area of New Hyderabad City, where it was refined and later sold in the local market.

The company launched a coordinated investigation in January 2026 in collaboration with intelligence and law enforcement agencies. After weeks of surveillance and technical tracking, authorities identified multiple illegal tapping points along the pipeline and located the illegal refinery.

A joint raid was carried out in the Siri area involving eight police vehicles, five OGDC vehicles, and support from an intelligence agency. During the operation, authorities recovered refining equipment along with a significant quantity of stolen crude oil.

Police at Tando Jam have registered a case against the alleged gang leader, Wazir Daudani, along with associates Ghani Daudani, Badshah Nizamani, Mabaan Nizamani, and six others, as per the First Information Report (FIR). The complaint was lodged by an OGDC security supervisor at the Pasakhi Oil Field.

Authorities also seized three Suzuki vehicles and a Mazda truck used for transporting the stolen crude oil.

OGDC has urged authorities to pursue strict legal proceedings, including action under Section 7 of the Anti-Terrorism Act (ATA), citing the scale of the operation and its threat to critical national energy infrastructure. The company said its timely intervention helped prevent significant financial losses to the national exchequer amid rising energy challenges.