PM hails significant oil and gas discovery

ISLAMABAD:

Prime Minister Shehbaz Sharif on Thursday congratulated the nation on the discovery of significant new oil and gas reserves in Kohat district of Khyber-Pakhtunkhwa, calling it a major milestone for Pakistan's domestic energy sector.

Chairing a high-level meeting on the petroleum and gas sector, the prime minister praised the dedicated work of the relevant departments and emphasised that prioritising local exploration would help conserve precious foreign exchange spent on petroleum imports.

The Oil and Gas Development Company Limited (OGDCL) reported the discovery of new reservoirs in the Nashpa Block, producing 4,100 barrels of oil per day (bpd) alongside 10.5 million cubic feet of gas per day (mmcfd).

"The prime minister congratulated the nation on this major discovery and appreciated the relevant departments for their dedicated work," an official handout issued after the meeting stated.

During the meeting, officials noted that domestic consumers experienced improved gas pressure this winter. Work on RLNG connections has also been expedited, with a target of 350,000 new connections by June 2026.

Pipelines for the Sheva and Batani gas fields have been commissioned, while construction on the Kot Palak gas field pipeline is ongoing. The prime minister directed for digitising the entire supply chain for the import and domestic utilisation of oil and gas on a priority basis.

"With the digitisation of the oil and gas supply chain, the smuggling of these products will be effectively curbed, which will ultimately benefit the national exchequer," the prime minister told the meeting.

Earlier, the OGDCL announced a major oil and gas discovery in Kohat district, describing it as a significant addition to Pakistan's domestic energy resources. In a statement, the company confirmed that production had commenced from the Baragzai X-1 exploratory well in the Nashpa Block.

Drilled to a depth of 5,170 metres, the well revealed a 187-metre hydrocarbon-bearing zone within the Datta Formation. A cased-hole drill stem test confirmed its commercial viability, recording production at a 32/64-inch choke and a wellhead flowing pressure of 3,880 pounds per square inch gauge.

The Nashpa exploration licence is operated by OGDCL with a 65% working interest. Pakistan Petroleum Limited holds 30%, while The Government Holdings Private Limited owns the remaining 5%, according to a company spokesperson. "The discovery will not only strengthen the country's energy reserves but also help reduce reliance on imported oil and gas, improving the national supply-demand balance."

The announcement follows an earlier find at the Baragzai X-01 (Slant) exploratory well, announced in December 2025, which produced 2,280 bpd of oil and 5.6 mmcfd of gas, marking the first hydrocarbon discovery from the Kingriali Formation.

That well, drilled to the same depth of 5,170 metres, was seen as a milestone in de-risking deeper exploration and paving the way for additional discoveries in the region.

OGDCL is also expanding its shale gas programme, transitioning from a single test well to a five- to six-well plan for 2026-27, with expected production of 3 to 4 million standard cubic feet per day per well. If successful, officials indicated the programme could eventually scale to hundreds, or even over 1,000 wells nationwide.

Separately, Shehbaz chaired a review meeting on economic reforms, investment promotion, and developmental projects. Highlighting the broader economic context, he stressed the importance of implementing government policies on economic governance without delay and called for practical proposals and a comprehensive strategy with minimal implementation time.

Prime Minister Shehbaz underscored that coordination among ministries and collaboration between federal and provincial governments were crucial for effective reforms and sustainable economic growth.

Ministries were directed to prepare recommendations to facilitate both domestic and foreign investors, promote exports, and ensure timely execution of development projects. The prime minister also instructed Pakistani embassies worldwide to provide initial orientation and relevant information to foreign investors.

Shehbaz further emphasised that all key sectors, including industry and agriculture, should receive equal focus to attract investment. Ministry representatives briefed him on the progress of ongoing projects and updates on economic, institutional, and administrative reforms.

The meetings were attended by Deputy Prime Minister and Foreign Minister Senator Ishaq Dar, federal ministers Ahsan Iqbal, Attaullah Tarar, Ali Pervaiz Malik, and Ahad Khan Cheema, Advisor to the PM Rana Sanaullah, Special Assistant to the PM Haroon Akhtar, chief secretaries of all provinces, the National Coordinator of SIFC, and other senior officials.

(WITH INPUT FROM APP)