Pakistan’s biggest-ever oil and gas well begins commercial production

ISLAMABAD: Oil and Gas Development Company Ltd (OGDCL) on Wednesday launched commercial production from Baragzai X-01 (Slant), an exploratory well in the Nashpa Block in Kohat district of Khyber Pakhtunkhwa, marking what the company described as the country’s largest-ever oil and gas discovery from a single well.

According to the details shared at the inauguration, the well has become the highest-producing well in Pakistan and now accounts for about 10pc of OGDCL’s total crude oil output.

Petroleum Minister Ali Pervaiz Malik formally inaugurated the start of commercial production at a ceremony attended by Secretary Petroleum Hamed Yaqoob Sheikh, OGDCL Managing Director and CEO Ahmed Hayat Lak, and representatives of exploration, development and services companies.

OGDCL said that with Wednesday’s addition of 5,300 barrels of oil per day, 17 million standard cubic feet per day of gas, and 15 tonnes per day of liquefied petroleum gas, cumulative production from the well has reached 15,000 barrels per day of oil and 45 million standard cubic feet per day of gas.

The state-run company said production from the well is expected to rise further in the near future to 25,000 barrels per day of oil and 60 million cubic feet per day of gas.

Infrastructure completed for production link-up

In what the company termed a major operational milestone, an 8-kilometre pipeline was laid in record time. OGDCL also carried out key changes for gas processing and crude oil storage, while linking the project with the Mela and Nashpa facilities.

The company said the development is expected to deliver significant economic gains. It estimated daily revenue from the project at Rs156 million, while projected monthly revenue stands at Rs4.7 billion and annual revenue at Rs57 billion.

OGDCL also said the project would help cut dependence on imported fuels and generate annual foreign exchange savings of around $329 million.

Major contribution to domestic energy supply

The start of commercial production from Baragzai X-01 adds to domestic oil and gas supplies at a time when local production remains a key component of the country’s energy mix. Based on figures released by the company, the well has already emerged as a major contributor to OGDCL’s crude production portfolio.

The announcement highlighted both the scale of the discovery and the pace at which supporting infrastructure was completed to bring the well into commercial operation.

Officials present at the ceremony included senior petroleum sector leadership and company representatives, underscoring the significance attached to the project by the government and the state-run exploration firm.