OGDCL Makes Fresh Oil and Gas Find in Khyber Pakhtunkhwa
Oil and Gas Development Company Limited (OGDCL) has announced a new oil and gas discovery at its exploratory well Baragzai X-01 (Slant) in the Nashpa Block, located in Kohat district, Khyber Pakhtunkhwa (KP).
The announcement was made through a formal notice submitted to the Pakistan Stock Exchange (PSX). According to the company, the discovery was confirmed in the Lumshiwal formation following a successful Cased Hole Drill Stem Test (CHDST-04).
This news has generated significant interest, with people searching online:
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In this detailed article, we explain everything in easy English, including production details, joint venture partners, drilling depth, formations tested, and what this means for Pakistan’s energy sector.
Where Is the Discovery Located?
The new discovery has been made in the Nashpa Block, situated in the Kohat district of Khyber Pakhtunkhwa (KP), Pakistan.
Nashpa Block is already known as a hydrocarbon-producing region. The area has shown strong potential in previous exploratory operations.
Production Details – How Much Oil and Gas Was Found?
According to OGDCL, the well produced:
- 225 barrels of oil per day (BOPD)
- 1.01 million standard cubic feet per day (MMSCFD) of gas
This production was achieved through a 32/64-inch choke at a wellhead flowing pressure of 190 psig.
These results confirm the commercial viability of the discovery.
What Is a Cased Hole Drill Stem Test (CHDST)?
A CHDST is a testing method used to evaluate hydrocarbon flow from a formation.
In simple words:
- Engineers test if oil or gas can flow from the well.
- They measure pressure and production rates.
- The results determine commercial potential.
CHDST-04 confirmed hydrocarbon presence in the Lumshiwal formation.
Formations Tested in Baragzai X-01
The Baragzai X-01 (Slant) well was spudded on December 30, 2024.
The well was drilled to a total depth of:
5,170 meters
It targeted multiple formations, including:
- Lockhart
- Hangu
- Lumshiwal
- Samana Suk
- Shinawari
- Datta
- Kingriali
The well reached the Kingriali formation at total depth.
Previous Discoveries at the Same Well
OGDCL reported that three earlier CHDSTs conducted in:
- Kingriali
- Datta
- Samana Suk plus Shinawari
Also resulted in oil and gas discoveries.
This indicates strong hydrocarbon potential across multiple formations in the block.
Working Interest & Joint Venture Partners
OGDCL operates the Nashpa Exploration License with:
65% working interest
Its partners include:
- Pakistan Petroleum Limited (PPL) – 30% stake
- Government Holdings Private Limited (GHPL) – 5% carried interest
Joint ventures reduce financial risk and share operational expertise.
Importance for Pakistan’s Energy Sector
Pakistan faces a persistent energy supply-demand gap.
New oil and gas discoveries help:
✔ Reduce reliance on imported fuel
✔ Save foreign exchange
✔ Strengthen energy security
✔ Improve trade balance
✔ Increase indigenous reserves
Every domestic discovery reduces import pressure.
Pakistan’s Growing Energy Challenges
Pakistan currently imports a large portion of:
- Crude oil
- LNG
- Refined petroleum products
High global oil prices increase economic pressure.
Local discoveries support energy independence.
Impact on Foreign Exchange Reserves
Oil imports consume significant foreign exchange.
If local production increases:
- Import bills may decrease
- Dollar outflow may reduce
- Pressure on rupee may ease
Energy self-sufficiency supports economic stability.
Market Reaction
After such announcements:
- Energy stocks often gain investor attention
- OGDCL share price may react
- Investors evaluate production sustainability
PSX disclosures maintain transparency for shareholders.
Addressing Public Skepticism
Some public comments suggest skepticism, claiming such discoveries are repetitive announcements.
However:
- PSX notices are regulated disclosures
- Production figures are tested results
- Independent verification processes exist
Energy exploration often involves multiple wells and formations within the same block.
What Happens Next?
Following discovery confirmation:
- Detailed evaluation will continue
- Production facilities may be installed
- Commercial production plans will be finalized
- Output will be integrated into national supply
Timely development is key to maximizing benefit.
Role of OGDCL in Pakistan
OGDCL is Pakistan’s largest exploration and production (E&P) company.
It contributes significantly to:
- National oil production
- Gas supply
- Energy security
- Government revenue
Discoveries like Baragzai X-01 strengthen its portfolio.
Long-Term Outlook
If multiple formations continue to produce:
- Nashpa Block output may increase
- KP region may attract further exploration
- Pakistan’s hydrocarbon reserves may expand
However, exploration carries geological risks.
Final Thoughts
The latest oil and gas discovery by OGDCL at Baragzai X-01 (Slant) well in KP is a positive development for Pakistan’s energy sector.
With production of 225 BOPD and 1.01 MMSCFD of gas, the discovery adds indigenous hydrocarbon resources to the country’s reserves base.
While challenges remain in fully addressing the energy deficit, continued exploration and development in regions like Nashpa Block strengthen Pakistan’s path toward greater energy security and economic stability.
