OGDCL reveals Nashpa Block reservoirs generating 4,100 barrels of oil per day
Prime Minister Shehbaz Sharif on Thursday congratulated the nation following the discovery of substantial new oil and gas reserves in Kohat district, 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 efforts of relevant departments and emphasised that prioritising local exploration would conserve precious foreign exchange spent on petroleum imports.
OGDCL Reports New Reservoirs in Nashpa Block
The Oil and Gas Development Company Limited (OGDCL) announced the discovery of new reservoirs in the Nashpa Block, producing 4,100 barrels of oil per day alongside 10.5 million cubic feet of gas per day. Production has commenced from the Baragzai X-1 exploratory well, drilled to a depth of 5,170 metres, revealing a 187-metre hydrocarbon-bearing zone within the Datta Formation. A cased-hole drill stem test confirmed commercial viability, recording production at a 32/64-inch choke with a wellhead flowing pressure of 3,880 psi.
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 5%. Officials stated the discovery would strengthen the country’s energy reserves and reduce reliance on imported oil and gas.
Infrastructure and Gas Supply Improvements
During the meeting, officials highlighted improved gas pressure for domestic consumers this winter. Work on RLNG connections has been accelerated, 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 continues.
The prime minister directed the digitisation of the entire oil and gas supply chain, both for import and domestic utilisation. “Digitisation will curb smuggling and ultimately benefit the national exchequer,” he said.
OGDCL Expands Exploration and Shale Gas Programme
This announcement follows a previous discovery at the Baragzai X-01 (Slant) well in December 2025, producing 2,280 bpd of oil and 5.6 mmcfd of gas—the first hydrocarbon finds from the Kingriali Formation. The discovery is seen as a step-in de-risking deeper exploration and paving the way for further finds in the region.
OGDCL is also expanding its shale gas programme, planning five to six wells for 2026-27, with expected production of 3–4 million standard cubic feet per day per well. If successful, this programme could eventually scale to hundreds or even over 1,000 wells nationwide.
Prime Minister Reviews Economic Reforms and Investment Strategies
Separately, PM Shehbaz chaired a review meeting on economic reforms, investment promotion, and development projects. He emphasized the importance of swift implementation of government policies and called for practical proposals with minimal delays.
The prime minister stressed coordination among ministries and collaboration between federal and provincial governments as key for sustainable economic growth. Ministries were tasked with preparing recommendations to facilitate domestic and foreign investment, boost exports, and ensure timely project execution. Pakistani embassies worldwide were instructed to provide initial orientation and relevant information to foreign investors.
Shehbaz highlighted equal focus on all key sectors, including industry and agriculture, to attract investment. The meetings included Deputy Prime Minister and Foreign Minister Senator Ishaq Dar, federal ministers, advisors, chief secretaries, the National Coordinator of SIFC, and other senior officials.