ISLAMABAD: Pakistan Petroleum Limited has informed the Pakistan StockExchange of a new natural gas discovery in the Tal Block, located in Kohatdistrict of Khyber Pakhtunkhwa, marking the second consecutive day ofpositive exploration outcomes in the region. The discovery at theBilitang-1 exploratory well yields approximately 1.58 million standardcubic feet per day of gas, adding to indigenous resources amid ongoingenergy challenges.
This development follows the announcement just a day earlier by Oil and GasDevelopment Company Limited of significant oil and gas reserves in theadjacent Nashpa Block, also in Kohat. The rapid succession of findsunderscores renewed exploration activity in Khyber Pakhtunkhwa, a provincerich in hydrocarbon potential but historically underexplored due tosecurity and geological complexities.
The Bilitang-1 well was spudded on August 10, 2025, and drilled to a depthof 4,011 meters. Testing from the Hangu and Lumshiwal formations confirmeda flow rate of 1.58 MMSCFD at a 40/64-inch choke size with a wellheadflowing pressure of 164 psi. The Tal Block is operated under a jointventure comprising multiple partners.
Partners in the Tal Block include Oil and Gas Development Company Limitedwith 30 percent working interest, MOL Pakistan Oil and Gas Company asoperator with 10 percent, Pakistan Petroleum Limited with 30 percent,Pakistan Oilfields Limited with 25 percent, and Government Holdings PrivateLimited with 5 percent. This collaborative structure has facilitatedsustained investment in the block.
The discovery is expected to de-risk further exploration in the Tal Block,opening avenues for additional production. Analysts note that such finds,though modest in isolation, contribute cumulatively to mitigatingPakistan’s growing gas shortfall, which currently stands at over 4 billioncubic feet per day against demand exceeding 8 billion cubic feet.
Pakistan’s natural gas production has declined steadily over the pastdecade, averaging a 5-7 percent annual drop due to depleting mature fields.Indigenous discoveries like this one help offset import dependencies, withliquefied natural gas imports costing billions in foreign exchange annually.
The previous day’s discovery in Nashpa Block, operated by OGDCL with PPL asa partner, reported potential for 4,100 barrels of oil and 10.5 MMSCFD ofgas per day from the Datta Formation. Prime Minister Shehbaz Sharifcongratulated the nation, emphasising priority for new reserves to conserveforeign exchange.
These back-to-back announcements highlight Khyber Pakhtunkhwa’s role innational energy security. The province hosts several prolific blocks,including Tal and Nashpa, which have collectively produced substantialhydrocarbons since early 2000s discoveries.
Exploration efforts in frontier areas face challenges, including highdrilling costs and technical risks in deeper formations. However, recentsuccesses demonstrate the efficacy of advanced geophysical techniques andjoint venture synergies in unlocking tighter reservoirs.
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The government has been promoting exploration through incentives in the2012 Petroleum Policy, though calls persist for updated frameworks toattract more investment. Current fiscal year targets include acceleratingdrilling in awarded blocks to reverse production decline.
This latest gas find will add to the reserves of all joint venture partnersand the country, supporting extended field life in Tal Block. Productioncommencement timelines will depend on development planning and regulatoryapprovals.
Overall, the consecutive discoveries signal optimism for Pakistan’supstream sector in 2026, potentially easing winter gas pressures andcontributing to economic stability through reduced import bills.
Source:https://propakistani.pk/2026/01/02/tal-jv-discovers-gas-reserves-in-kohat/
Tags: Pakistan, Khyber Pakhtunkhwa, Kohat, Tal Block, Pakistan PetroleumLimited, Oil and Gas Development Company Limited, Bilitang-1
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