By SKM
April 15, 2026
ISLAMABAD: In a major development, 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 the Kohat District 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 tons 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.
Ali Pervaiz Malik termed the discovery “monumental,” highlighting its role in strengthening energy security and calling for greater momentum in indigenous exploration. Ahmed Hayat Lak credited OGDC’s technical teams for executing the project under difficult conditions and reaffirmed plans to further enhance production capacity.
The Baragzai X-01 development signals renewed momentum in Pakistan’s upstream sector, with the potential to reduce exposure to volatile global energy markets, ease pressure on foreign reserves, and reinforce long-term economic resilience.
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