PPL Discovers New Gas And Condensate Reserves At Shah Bandar Block, But Commercial Success Still Uncertain

Fourth Consecutive Hydrocarbon Discovery Boosts Exploration Outlook

Pakistan Petroleum Limited (PSX: PPL) has announced another significant hydrocarbon discovery at its exploratory well, Rahi X-1, located in the Shah Bandar Exploration License in District Sujawal, Sindh.

The latest Pakistan Petroleum Limited Gas Discovery represents the fourth consecutive hydrocarbon find in the Shah Bandar Block, reinforcing confidence in the area’s geological potential and providing fresh optimism for Pakistan’s struggling energy sector.

The discovery comes at a time when Pakistan continues to battle rising energy imports, widening trade deficits and growing pressure to improve domestic oil and gas production. Every successful exploration project is therefore viewed as an important step toward reducing dependence on expensive imported fuels.

Discovery Achieved Using Indigenous Technical Expertise

According to Pakistan Petroleum Limited’s disclosure to the Pakistan Stock Exchange (PSX), the Rahi X-1 exploratory well was drilled entirely using indigenous technical expertise, highlighting the growing capabilities of Pakistan’s petroleum exploration industry.

The well was spudded on June 17, 2026, and drilled to a measured depth of 2,612 metres.

Its primary objective was to evaluate the hydrocarbon potential of the Upper Sand interval within the Lower Goru Formation, one of Pakistan’s most productive gas-bearing geological formations.

Interpretation of drilling data and wireline logs confirmed the presence of hydrocarbons, leading to a successful cased-hole Drill Stem Test (DST).

During testing, the well produced natural gas at approximately 0.493 million standard cubic feet per day (MMscfd), while condensate production reached around 12 barrels per day.

The wellhead flowing pressure was recorded at 133 psi using a 32/64-inch choke from the Lower Goru Upper Sands reservoir.

The test results confirm the presence of hydrocarbons in the reservoir, although production volumes remain relatively modest compared with commercially established gas fields.

Shah Bandar Block Continues To Deliver Exploration Success

The latest discovery further strengthens the exploration track record of the Shah Bandar Block, where Pakistan Petroleum Limited serves as operator with a 63% working interest.

The exploration partnership also includes Mari Energies Limited with a 32% stake, while Sindh Energy Holding Company Limited (SEHCL) and Government Holdings Private Limited (GHPL) each hold a 2.5% working interest.

Four consecutive discoveries within the same exploration block significantly strengthen confidence in the basin’s hydrocarbon potential.

Such consistent exploration success could encourage further investment in drilling campaigns across Sindh as Pakistan seeks to increase domestic energy supplies.

Commercial Viability Yet To Be Established

Despite the encouraging discovery, investors should avoid assuming that every hydrocarbon find automatically translates into commercially profitable production.

Pakistan Petroleum Limited acknowledged that preliminary testing indicates the reservoir is relatively tight, meaning hydrocarbons may not flow efficiently without additional technical intervention or enhanced recovery methods.

Tight reservoirs typically require higher development costs, longer evaluation periods and advanced production techniques before commercial extraction becomes economically viable.

While the latest discovery is positive for exploration activity, its commercial viability has not yet been confirmed.

The company will now undertake detailed geological, geophysical and engineering studies to determine whether the field can sustain economic production and justify future development investments.

Until those assessments are completed, the discovery should be viewed as technically promising rather than commercially proven.

Importance For Pakistan’s Energy Security

Pakistan’s domestic gas reserves have been steadily declining while energy demand continues to rise.

New discoveries such as Rahi X-1 demonstrate that untapped hydrocarbon potential still exists within the country.

However, the long-term benefit will depend on whether exploration success can be converted into commercially productive gas fields.

If future evaluations confirm economic viability, the Shah Bandar Block could contribute to strengthening Pakistan’s energy security, reducing reliance on imported liquefied natural gas (LNG) and supporting industrial growth.

Policymakers and investors will therefore remain focused on the results of ongoing technical evaluations before the discovery progresses toward commercial development.

Further Technical Assessment Will Determine Future Development

The coming months will be crucial as Pakistan Petroleum Limited carries out additional technical studies to determine whether the latest discovery can evolve from an encouraging geological success into a commercially valuable energy asset.

While the fourth consecutive discovery reinforces the exploration potential of the Shah Bandar Block, long-term success will ultimately depend on commercial production, sustainable output and economic feasibility.

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