ISLAMABAD: Oil and Gas Development Company Limited (OGDCL) has unveiled what it describes as the largest oil and gas discovery in Pakistan this year, located in the Kohat district of Khyber Pakhtunkhwa. The find at the Baragzai X-01 (Slant) exploratory well in the Nashpa Exploration License has delivered impressive flow rates during testing, signaling a major advancement for the nation’s energy sector amid ongoing efforts to bolster indigenous production.
The discovery occurred in the Lockhart Limestone formation through a cased-hole Drill Stem Test (DST-05). The well produced 3,765 barrels of oil per day and 11.2 million standard cubic feet of gas per day, achieved through a 32/64-inch choke at a wellhead flowing pressure of 4,080 psig. This result positions the latest find as a standout success in recent exploration activities.
OGDCL operates the Nashpa Exploration License with a 65 percent working interest. Its joint venture partners include Pakistan Petroleum Limited (PPL) holding 30 percent and Government Holdings (Private) Limited (GHPL) with 5 percent carried interest. The collaborative structure has enabled thorough testing across multiple geological layers.
Drilling at Baragzai X-01 (Slant) commenced on December 30, 2024. The well reached a total depth of 5,170 meters into the Kingriali Formation. It was designed to evaluate hydrocarbon potential in several key formations, including Lockhart, Hangu, Lumshiwal, Samana Suk, Shinawari, Datta, and Kingriali.
Earlier tests at the same well had already yielded promising outcomes in other formations. Cumulative discoveries from Baragzai X-01 have contributed substantially to national output. Previous flows included rates such as 3,100 barrels of oil per day and 8.15 million standard cubic feet of gas per day from Samana Suk and Shinawari layers, alongside additional contributions from Datta and other zones.
Industry observers note that these successive finds within months have added around 9,480 barrels of oil per day in aggregate impact. This figure represents approximately 14.5 percent of Pakistan’s current domestic crude oil production, which hovers near 66,000 barrels per day.
The latest announcement came via a formal notice to the Pakistan Stock Exchange. OGDCL emphasized that the discovery strengthens the country’s hydrocarbon reserves base. It also supports joint venture partners and contributes to reducing the energy supply-demand gap through local resources.
Pakistan relies heavily on imported fuels to meet its energy needs. Crude oil and liquefied natural gas imports place significant pressure on foreign exchange reserves. Discoveries like this one offer potential relief by enhancing self-sufficiency in hydrocarbon production.
Exploration in Khyber Pakhtunkhwa has gained momentum in recent years. The region’s geology, particularly in areas like Kohat, holds promise for further finds in limestone and other formations. Successful appraisal and development phases could unlock additional reserves.
Experts highlight that sustained investment in exploration remains crucial. Challenges such as security considerations in certain areas and technical complexities in drilling have historically slowed progress. Yet, state-owned entities like OGDCL continue to lead aggressive campaigns.
The Baragzai discovery aligns with broader national goals outlined in energy policy frameworks. The government seeks to increase domestic oil and gas output to curb import bills. Recent fiscal measures have aimed to incentivize E&P activities through improved pricing and regulatory support.
Market response to the announcement has been positive. Shares of OGDCL and related entities often reflect such news positively, as investors anticipate enhanced production profiles and revenue streams.
Further evaluation work is expected at the site. Appraisal wells may follow to delineate the extent of the reserves. Commercial production timelines will depend on successful completion of these steps and infrastructure development.
This find underscores the importance of continued geophysical surveys and drilling in underexplored basins. Pakistan’s sedimentary basins offer untapped potential, with northern regions like Khyber Pakhtunkhwa emerging as key frontiers.
OGDCL’s track record includes several notable discoveries in recent years. The company’s focus on high-potential blocks has yielded consistent results, reinforcing its position as the leading E&P operator in the country.
The development arrives at a time when global energy markets face volatility. Stable domestic supplies provide a buffer against international price fluctuations and supply disruptions.
Officials from the Ministry of Energy have welcomed the news. They view it as validation of policies promoting local exploration and production.
Stakeholders anticipate that full development of the Baragzai reserves could add meaningfully to national reserves. Estimates of recoverable volumes will become clearer following further studies.
In the interim, the flow test results demonstrate strong commercial viability. High pressures and substantial rates indicate robust reservoir characteristics.
Pakistan’s energy sector continues to evolve. Discoveries such as this contribute to long-term energy security objectives while supporting economic stability through reduced import dependency.
The Kohat discovery stands out as a highlight of 2026’s exploration efforts so far. It reinforces confidence in the potential of domestic resources to play a greater role in meeting the country’s growing energy demands.