Islamabad: Oil and Gas Development Company Limited (OGDC), Pakistan’s flagship energy explorer, has announced a groundbreaking hydrocarbon discovery in the Nashpa Block, hailed as the largest oil-producing block in the country. The find, from the exploratory well Bargazai-X01, promises to significantly bolster national reserves and counter the depleting output from the aging Nashpa oil field.
Drilled to a target depth of 5.81 meters, the Bargazai-X01 well struck hydrocarbons at 5.17 meters—above expectations—and is undergoing additional testing to confirm further potential. This discovery underscores OGDC’s commitment to unlocking untapped resources amid Pakistan’s growing energy demands. Industry analysts project that full field development in the Bargazai area could arrest the Nashpa field’s decline and elevate OGDC’s overall reserves by a meaningful margin.
“This is a game-changer for Pakistan’s upstream sector,” said an OGDC spokesperson. “The Nashpa Block has long been a cornerstone of our production, and this new find positions us to sustain and expand output for decades.”
Financial projections for the discovery paint an optimistic picture, based on current market benchmarks. With crude oil priced at $62 per barrel and natural gas at $5.50 per million British thermal units (MMBTU), the realized crude price stands at $58 per barrel. At an exchange rate of 281 PKR/USD, initial gas production estimates of 2.80 million cubic feet per day (MMCFD) could generate substantial revenues.
Under a projected sharing model—65% to OGDC and 30% to Pakistan Petroleum Limited (PPL)—net revenues are forecasted at 7.539 PKR million for OGDC and 2.053 PKR million for PPL in the initial phase. Net income projections follow suit, with OGDC at 3.016 PKR million and PPL at 0.821 PKR million, translating to combined earnings per share (EPS) impacts of 0.70 PKR for OGDC and 0.19 PKR for PPL.
The discovery arrives at a pivotal time for Pakistan’s energy landscape, where domestic production struggles to keep pace with consumption. Nashpa, operational since 2010, has been a vital contributor to OGDC’s portfolio, accounting for a significant share of the company’s 40,000+ barrels of oil equivalent per day output. Experts believe this find could enhance energy security, reduce import reliance, and stimulate economic growth through job creation and technology transfer.
Shares of OGDC and PPL saw modest gains in early trading on the Pakistan Stock Exchange following the announcement, reflecting investor confidence in the sector’s revival. As testing progresses, further updates on commercial viability and development timelines are anticipated in the coming months.
This breakthrough aligns with Pakistan’s broader push for sustainable energy exploration, including incentives under the Pakistan Onshore Petroleum Policy. For OGDC, it reinforces its status as the nation’s leading explorer, with a track record of over 200 discoveries since 1961.