Oil and Gas Discovery Boosts Pakistan Energy Outlook
Pakistan has received a major boost on the energy front after the Oil and Gas Development Company Limited (OGDCL) confirmed a significant oil and gas discovery in Khyber Pakhtunkhwa. The breakthrough was made at the Baragzai X-01 (Slant) exploratory well in the Nashpa Block, located in district Kohat, and marks a highly promising addition to the country’s dwindling indigenous hydrocarbon reserves.
The state-owned OGDCL announced the discovery through official notifications sent to both the Pakistan Stock Exchange (PSX) and the London Stock Exchange (LSE), highlighting impressive flow rates and strong production potential. According to the company, the exploratory well has produced:
- 2,280 barrels per day (BPD) of oil
- 5.6 million standard cubic feet per day (MMSCFD) of gas
- Wellhead flowing pressure of 2,400 psi through a 32/64″ choke
This discovery is particularly significant as it represents the first-ever hydrocarbon find from the Kingriali Formation within the Nashpa Block. For Pakistan—where domestic energy reserves have been under mounting strain—this comes as a much-needed boost to supply potential and exploration confidence.
Details of the Discovery at Baragzai X-01
The Baragzai X-01 (Slant) well was spud-in on December 24, 2024, with the objective of targeting deeper reservoir formations in search of new hydrocarbon deposits. The well reached a total depth of 5,170 meters, entering the Kingriali Formation—an area previously considered high-risk due to limited historical yield.
During drilling, the well encountered a 90-meter-thick hydrocarbon-bearing interval of Triassic age, an encouraging sign that prompted OGDCL to proceed with further testing. The company evaluated the zone using open hole wireline logs—an essential step in assessing reservoir potential. Following the analysis, a cased hole drill stem test (DST) was successfully conducted, confirming strong oil and gas flow rates.
OGDCL stated that the discovery will help de-risk deeper exploration prospects within the region. This means the find improves confidence for future drilling in zones considered technically challenging or geologically uncertain.
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Joint Venture and Working Interests
OGDCL operates the Nashpa Exploration License with a majority 65% working interest. The remaining stakes are held by:
- Pakistan Petroleum Limited (PPL) – 30%
- Government Holdings (Private) Limited (GHPL) – 5% carried interest
This distribution reflects a typical joint venture structure in Pakistan’s upstream oil and gas sector, where OGDCL often acts as operator and lead investor.
The partnership model enables risk-sharing, greater technical input, and the pooling of financial resources—all of which are essential for high-cost deep exploration wells.
Why This Discovery Matters for Pakistan
Pakistan has long struggled with rising energy imports, declining domestic production, and ongoing challenges in maintaining sufficient natural gas supply for industry and households. This discovery offers fresh hope on several fronts.
1. Boost to Domestic Production
An additional 2,280 BPD of oil and 5.6 MMSCFD of gas can significantly support local refineries and power projects, reducing pressure on costly imports.
2. Strengthening of Energy Security
Pakistan’s energy supply-demand gap has widened in recent years. Indigenous discoveries reduce external dependency and strengthen long-term stability.
3. Economic Relief
Reduced reliance on international crude translates to lower import bills. Given Pakistan’s foreign exchange constraints, even medium-sized discoveries can provide meaningful macroeconomic support.
4. Encouragement for Further Exploration
A discovery from the Kingriali Formation—previously not considered highly productive—encourages deeper exploration in neighboring regions. Operators may fast-track exploration programs that were earlier considered too risky.
5. Value Addition for Stakeholders
The find benefits OGDCL and its partners financially while contributing to national energy needs. It could also improve investor confidence in Pakistan’s upstream sector.
Pakistan’s Oil and Gas Landscape: A Historical Perspective
To understand the significance of the Baragzai discovery, it is essential to consider Pakistan’s historical energy context.
Early Discoveries and Growth
Pakistan began exploring hydrocarbons soon after independence. Key early discoveries included the Sui Gas Field in 1952, one of the largest natural gas fields in the region. Over the decades, additional fields were discovered in Sindh and Khyber Pakhtunkhwa, contributing substantially to national energy needs.
Oil and Gas : Decline of Domestic Reserves
By the early 2000s, Pakistan produced enough gas to support its industrial and household needs. However, natural depletion, lack of new discoveries, and rising demand contributed to shortages. Daily gas production declined steadily while consumption surged—forcing Pakistan to rely heavily on imported LNG.
Shift Toward Deeper Exploration
In recent years, companies such as OGDCL and PPL have focused increasingly on deeper and more complex formations, which require advanced drilling technology. While exploration costs have risen, the potential benefits—like the recent Kingriali Formation discovery—can be substantial.
Oil and Gas : Rising Import Dependence
Pakistan today imports billions of dollars worth of oil and LNG annually. These imports strain foreign reserves and increase exposure to global price shocks. Every domestic discovery helps save foreign exchange and stabilize the energy grid.
The Baragzai Discovery in this Context
The Nashpa Block discovery fits into a broader national effort to revive exploration momentum. With Pakistan’s energy landscape in transition, such finds play a crucial role in bridging the supply gap and strengthening long-term energy resilience.
Oil and Gas : What Happens Next?
After confirming a successful DST, OGDCL will move toward:
- Completing the well
- Connecting it to the nearest production and supply network
- Conducting reservoir studies for long-term flow optimization
- Initiating appraisal drilling in adjacent structures
Regulators and joint venture partners will also review production profiles and consider expanding exploration in deeper formations.
If managed efficiently, this discovery can become a key contributor to Pakistan’s future energy stability.
For official OGDCL announcements and exploration updates, visit:
https://ogdcl.com
FAQs
1. Where was the new oil and gas discovery made?
It was made at the Baragzai X-01 (Slant) exploratory well in the Nashpa Block, district Kohat, KP.
2. How much oil and gas will the well produce?
It has tested at 2,280 BPD of oil and 5.6 MMSCFD of gas.
3. Which companies are involved in this exploration?
OGDCL (65% operator), PPL (30%), and GHPL (5%).
4. Why is this discovery important?
It enhances Pakistan’s domestic energy supply and reduces reliance on imports.
5. Is this the first discovery in the Kingriali Formation?
Yes, this is the first-ever oil and gas discovery from the Kingriali Formation in the Nashpa Block.
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