(Pakistan’s Oil and Gas Reserves Increase for Next 17 Years Requirements: OGDCL)
Years
ISLAMABAD: The Oil and Gas Development Company Limited (OGDCL) has confirmed that Pakistan’s proven oil and gas reserves can now meet national requirements for the next 17 years.
This marks an improvement from the previous estimate of around 12 years. The update reflects recent exploration successes and better field development across key basins.
OGDCL, the country’s largest exploration and production company, holds a dominant share of Pakistan’s hydrocarbon sector. It controls approximately 37% of total exploration acreage, 49% of oil reserves, and 31% of gas reserves.
Pakistan’s proven oil reserves currently stand at around 243 million barrels. Daily crude oil production has risen to over 90,000 barrels per day, though national demand exceeds 440,000 barrels daily.
For natural gas, remaining recoverable reserves support sustained production following incremental additions from new wells. Current average gas production hovers near 1.45 billion cubic feet per day.
A major contributor to the extended reserve life is the Baragzai X-01 well in Kohat, Khyber Pakhtunkhwa. This well is currently producing approximately 15,000 barrels of oil per day and 45 million standard cubic feet of gas per day. Output is expected to increase further to 25,000 barrels of oil and 60 mmscfd of gas.
OGDCL management described the development as the result of consistent exploration efforts and successful appraisal of new discoveries. The company contributes nearly 50% to national oil production and around 27% to gas output.
**Recent Performance**
In the past 18 months, multiple discoveries in Kohat and other blocks have added meaningful volumes to the reserves base. The Nashpa Block’s Baragzai development alone is projected to generate annual foreign exchange savings of nearly $329 million through import substitution.
OGDCL has set internal targets to increase its operated oil production to 40,000 barrels per day and gas output to 865 mmscfd in the coming periods.
Despite the positive reserve outlook, Pakistan remains a net importer of crude oil and refined petroleum products. Domestic production currently meets less than 20% of total oil demand. Gas supply also faces seasonal shortfalls, particularly during winter months.
**Policy and Exploration Push**
The government has supported the sector through faster licensing, new block awards, and incentives under the Special Investment Facilitation Council. Eleven new onshore exploration blocks were awarded in recent rounds.
Exploration activity remains focused in Khyber Pakhtunkhwa, Sindh, and southern Punjab. Operators are also advancing plans for unconventional resources, including shale and tight gas in the Indus Basin.
The extended reserve horizon provides breathing room for energy planning and supports efforts to reduce the energy import bill. However, experts caution that long-term sustainability will depend on continued investment in exploration and enhanced recovery techniques.
Looking ahead, OGDCL and other operators are expected to maintain an active drilling schedule throughout 2026-27. Further announcements regarding new discoveries and production targets are likely in the coming months.