GURGARY (Karak), Dec 11: The country has hit natural gas reserves of around one trillion cubic feet (1TCF) here, Petroleum and Natural Resources Minister Chaudhry Norez Shakoor announced on Wednesday.

He, however, said the oil import bill would touch the highest figure of $3.5 billion by the end of the current fiscal year.

This was the first gas discovery in the NWFP and it had increased the prospects for more discoveries in the region, Petroleum Concessions Director-General G.A. Sabri said.

He said Tal block was the last exploration block in the southwest but some more blocks might have to be created due to the discovery at the Manzalai-1 well.

Oil reserves of around 2,200 barrels per day production were discovered last year in Shakardara, near Kohat. Before that the province was never considered to be prospective by the foreign oil companies.

Total production at Manzalai well No.1 is estimated at 35 million cubic feet daily (MCFD) of gas and 230 barrels per day of condensate. This would result in foreign exchange saving of around $45 million every year, said the operations manager of Hungarian oil company MOL, Gabor Vakarcs.

A geologist said the prospective area spread from Potohar region, where a number of oil and gas discoveries had been made, through the Kurram Agency to Afghanistan.

A $14 million investment has so far been made on the discovery. The MOL, an oil exploration company from Budapest, is the operator of the petroleum concession block with 10 per cent shares. Government Holdings Limited (GHL) has five per cent shares.

Pakistan Petroleum Limited (PPL) and Oil and Gas Development Company (OGDC) hold 30 per cent shares each, followed by 25 per cent of Pakistan Oilfields.