ISLAMABAD: Oil and Gas Development Company Limited (OGDC) on Wednesday launched commercial production from its Baragzai X-01 (Slant) well, marking the highest-ever oil and gas output from a single well in Pakistan’s history and delivering a major boost to domestic energy supply.
The well, located in Kohat within the Nashpa Block, is expected to generate over $200 million in annual revenue while helping the country save around $329 million annually in foreign exchange by cutting reliance on imported fuels.
OGDC said initial injection included 5,300 barrels per day (bpd) of oil, 17 million standard cubic feet per day (mmscfd) of gas, and 15 metric tonnes per day (mtd) of LPG. Cumulative production has since reached approximately 15,000 BPD of oil and 45 mmscfd of gas, with output projected to rise to 25,000 BPD and 60 mmscfd in the near term.
At current levels, the well contributes nearly 10 percent of Pakistan’s total crude oil production, making it a critical addition to the country’s energy mix at a time of rising import dependence.
The discovery is also being viewed as a technical breakthrough, with hydrocarbons successfully extracted from five different geological formations, a complex achievement in one of the country’s most challenging terrains. OGDC deployed advanced technologies and fast-tracked infrastructure development, including laying an 8-kilometre pipeline and integrating production with existing Nashpa and Mela processing facilities.
Financially, the project is expected to generate Rs156 million per day (around $550,000), translating into approximately Rs57 billion annually. The associated import substitution is likely to provide much-needed support to Pakistan’s external account, where energy imports remain a major source of pressure.
The formal inauguration ceremony, held at OGDC headquarters in Islamabad, was attended by Energy Minister Ali Pervaiz Malik, Petroleum Secretary Hamid Yaqoob Sheikh, and OGDC Managing Director and CEO Ahmed Hayat Lak, along with senior industry officials.
Speaking on the occasion, Federal Minister for Energy Ali Pervaiz Malik congratulated OGDC, its joint venture partners and service providers on the achievement.
