Pakistan discovers fresh oil and gas reserves in Khyber Pakhtunkhwa

Dubai: Pakistan’s state-owned Oil and Gas Development Company Limited (OGDCL) has announced a fresh oil and gas discovery in Khyber Pakhtunkhwa province, underscoring renewed momentum in the country’s domestic energy exploration efforts.

In a notice to the Pakistan Stock Exchange, OGDCL said its exploratory well Baragzai X-01 (Slant), located in Kohat district, has begun producing approximately 3,100 barrels of crude oil per day along with 8.15 million standard cubic feet per day (mmcfd) of natural gas.

The discovery was confirmed following a successful Cased Hole Drill Stem Test (CHDST-03) conducted in the Samana Suk and Shinawari formations. The well flowed through a 32/64-inch choke at a wellhead flowing pressure of 3,010 pounds per square inch gauge (psig), the company said, according to the Associated Press of Pakistan.

OGDCL, the operator of the Nashpa Exploration Licence, described the find as the third discovery at the Baragzai X-01 well within a single month. Earlier discoveries were reported from the Datta Formation earlier this month, while the first find was announced last month.

“This discovery will contribute towards mitigating the energy supply-demand gap through indigenous resources and will add to the hydrocarbon reserves base of OGDCL, its joint venture partners, and the country,” the company said in a statement.

Within a month, the Baragzai discoveries have added an estimated 9,480 barrels of oil per day, around 14.5 per cent of Pakistan’s domestic crude oil production, which currently stands at approximately 66,000 barrels per day.

The latest discovery comes as Pakistan intensifies efforts to boost domestic oil and gas production and reduce reliance on costly imports amid ongoing economic challenges. Last year, the government signed five oil and gas exploration agreements covering three offshore and two onshore blocks with local and international companies.

These projects involve major players such as Mari Energies, OGDCL, Pakistan Petroleum Limited, Fatima Petroleum, Government Holdings Limited, and Turkish Petroleum Overseas Company. In November, Pakistan also auctioned 40 offshore blocks, attracting 23 bids from four consortia, including Turkey’s state-owned energy firm TPAO.

The consortia have committed $80 million for the exploration phase, with potential total investments rising to as much as $1 billion if commercial production follows.