OGDCL oil and gas discovery at the Baragzai X-01 (Slant) exploratory well marks a significant milestone for Pakistan’s upstream energy sector, reinforcing the country’s efforts to reduce reliance on imported fuel and strengthen indigenous hydrocarbon production.
The Oil and Gas Development Company Limited (PSX: OGDC), Pakistan’s largest exploration and production company, announced a successful oil and gas discovery in the Nashpa Exploration License area, located in District Kohat, Khyber Pakhtunkhwa. OGDCL operates the block with a 65% working interest, alongside Pakistan Petroleum Limited (PPL) holding 30% and Government Holdings (Private) Limited (GHPL) with a 5% stake.
OGDCL Oil and Gas Discovery Delivers Strong Production Results
The discovery was confirmed following a cased-hole Drill Stem Test (DST-02) conducted in the Jurassic-age Datta Formation, a proven hydrocarbon-bearing zone in the region.
During testing, the Baragzai X-01 (Slant) well achieved impressive flow rates, producing 4,100 barrels of oil per day (BOPD) and 10.5 million standard cubic feet of gas per day (MMSCFD) at a 32/64-inch choke size. The well recorded a wellhead flowing pressure of 3,880 psig, reflecting strong reservoir energy and commercial viability.
Instead of presenting raw production figures in tabular form, it is important to note that these output levels position the discovery among the more impactful onshore finds in recent years, particularly at a time when Pakistan is actively seeking domestic energy solutions.
Baragzai X-01 Well Drilling and Geological Insights
Drilling operations for the Baragzai X-01 (Slant) well commenced on December 30, 2024, and the well was drilled to a total depth of 5,170 meters, penetrating down to the Triassic-age Kingriali Formation.
During drilling, approximately 187 meters of the Datta Formation were encountered. The presence of strong hydrocarbon shows, supported by petrophysical evaluations from open-hole wireline logs, indicated favorable reservoir characteristics. Additionally, fracture indications identified through advanced image logging techniques further enhanced confidence in the formation’s productivity.
These encouraging indicators led to the decision to conduct a cased-hole drill stem test, which ultimately confirmed commercial quantities of oil and gas.
OGDCL Oil and Gas Discovery Builds on Earlier Success
Prior to the Datta Formation test, the well had already demonstrated hydrocarbon potential through successful cased-hole testing (CHDST-01) in the Kingriali Formation. This earlier success suggested the presence of a multi-zone petroleum system, enhancing the overall prospectivity of the Nashpa block.
Such stacked pay potential not only improves project economics but also increases the long-term reserve base for OGDCL and its joint venture partners.
Strategic Importance for Pakistan’s Energy Security
The latest OGDCL oil and gas discovery is expected to play a meaningful role in narrowing Pakistan’s energy supply-demand gap. By adding new indigenous production, the discovery helps reduce pressure on foreign exchange reserves that are otherwise spent on importing oil and LNG.
From a broader perspective, this discovery strengthens OGDCL’s reserve portfolio, enhances investor confidence in Pakistan’s upstream sector, and supports the government’s long-standing objective of maximizing domestic resource utilization.
Conclusion: A Positive Signal for Investors and the Economy
In conclusion, the Baragzai X-01 (Slant) discovery represents more than just another successful well, it is a strategic win for Pakistan’s energy landscape. With robust oil and gas flow rates, favorable geology, and strong partnerships between OGDCL, PPL, and GHPL, the project underscores the untapped potential of Pakistan’s onshore basins.
As exploration activity continues and further appraisal work is undertaken, the OGDCL oil and gas discovery at Baragzai is poised to contribute meaningfully to national energy security, economic stability, and long-term hydrocarbon sustainability.