title:OGDCL Oil and Gas Discovery Boosts Pakistan Energy Sector
ISLAMABAD: In a major development for Pakistan’s energy landscape, the Oiland Gas Development Company Limited (OGDCL) has unveiled a significant oiland gas discovery at the Baragzai X-01 (Slant) exploratory well in DistrictKohat, Khyber Pakhtunkhwa. This breakthrough, announced via a notice to thePakistan Stock Exchange, highlights reserves in the Samana Suk andShinawari formations within the Nashpa Exploration License area. Initialtesting revealed impressive flow rates of 3,100 barrels of oil per day and8.15 million standard cubic feet of gas per day, igniting hopes forbolstering national hydrocarbon supplies amid persistent energy shortages.
The discovery is a collaborative effort involving OGDCL as the operatorwith a 65 percent working interest, alongside joint venture partnersPakistan Petroleum Limited holding 30 percent and Government Holdings(Private) Limited with a 5 percent carried interest. Spudded on December30, 2024, the well reached a depth of 5,170 meters into the KingrialiFormation. Wireline logs and drill stem tests confirmed hydrocarbons inmultiple formations, including earlier finds in Kingriali and Datta, butthe latest from Samana Suk and Shinawari marks a pivotal exploratorysuccess in the Nashpa Block.
Pakistan’s oil and gas sector has been grappling with declining production,with crude oil output averaging around 62,400 barrels per day in fiscalyear 2025, a 12 percent drop year-on-year. Natural gas production stood atapproximately 2,886 million cubic feet per day, down 8 percent. Proven oilreserves are estimated at 243 million barrels, ranking Pakistan 52ndglobally, while gas reserves hover at 19 trillion cubic feet. This new findcould add meaningful increments, helping to offset maturing fields andreduce reliance on costly imports that strain the economy.
OGDCL, Pakistan’s largest exploration and production company, plays acentral role in the nation’s energy security. As a state-owned entity, itcontributes over 45 percent of the country’s oil production and around 25percent of gas output. Recent discoveries, including this third in KhyberPakhtunkhwa within a month, reflect intensified exploration efforts infrontier basins. The Nashpa Block, known for its geological promise, hasyielded prior successes, but the Baragzai well’s multi-formation yieldssuggest untapped potential in Jurassic and Triassic reservoirs.
The production metrics from Baragzai X-01 are particularly encouraging.During the cased-hole drill stem test in Samana Suk and Shinawari, the wellflowed at 3,100 barrels per day of oil and 8.15 million cubic feet per dayof gas under a 32/64-inch choke with a wellhead flowing pressure of 3,010psi. Comparative analysis shows this outperforms several recent finds, suchas those in nearby blocks yielding under 2,000 barrels per day. Integrationinto existing infrastructure could expedite commercialization, potentiallyadding 4-5 percent to national oil output if scaled.
Economically, this discovery arrives at a critical juncture. Pakistanimports over 80 percent of its oil needs, costing billions annually andexacerbating trade deficits. With global oil prices volatile, domesticenhancements like Baragzai could save foreign exchange and stabilize energycosts. Analysts project that full development might contribute up to $500million in annual revenue, based on current benchmarks, while creating jobsin Kohat and fostering regional development in Khyber Pakhtunkhwa’sresource-rich areas.
Geologically, the Kohat district in the Potwar Basin extension is renownedfor complex thrust-fold structures harboring hydrocarbons. The Samana Sukand Shinawari formations, of Middle Jurassic age, are limestone anddolomite reservoirs with favorable porosity. Seismic data and 3D modelinglikely guided the slant drilling, optimizing penetration through faultedzones. This success validates advanced techniques, encouraging furtherinvestment in similar plays across northern Pakistan.
Read Top Stories
Broader implications extend to energy policy. Pakistan’s hydrocarbonreserves-to-production ratio stands at about 12 years for oil and 19 yearsfor gas, underscoring urgency for new reserves. Government incentives,including fiscal reforms in the 2024 Petroleum Policy, have spurredactivity, with OGDCL planning 20 exploratory wells in 2026. Internationalpartnerships could accelerate technology transfer, addressing challengeslike security in frontier regions and environmental concerns in drillingoperations.
Environmental considerations are paramount in such developments. Whileboosting energy independence, oil and gas extraction must adhere tosustainable practices. OGDCL has committed to minimal flaring and watermanagement in Kohat, aligning with national goals for carbon reduction.Community engagement programs, including local hiring and infrastructureupgrades, aim to mitigate social impacts, ensuring the discovery benefitshost communities without exacerbating ecological strains.
In conclusion, the Baragzai X-01 discovery exemplifies Pakistan’s enduringhydrocarbon potential despite production declines. As OGDCL and partnersadvance appraisal and development, this find could catalyze sector revival,enhancing self-sufficiency and economic resilience. Continued explorationsuccess will be key to navigating energy transitions toward renewables,positioning Pakistan for a balanced future in global energydynamics.id=”d92be0″ cardtype=”imagecard”type=”rendersearchedimage”>id”>0″LARGE”
Source:https://profit.pakistantoday.com.pk/2026/01/20/ogdcl-announces-major-oil-and-gas-discovery-at-baragzai-x-01-well-in-kohat-kp/
ogimageimage-name
