Biggest well begins oil, gas production

Published
2
Petroleum Minister Ali Pervaiz Malik inaugurates the commencement of commercial production from OGDC’s Baragzai X-01 Well in Nashpa Block, in Islamabad on April 15. — PID
Petroleum Minister Ali Pervaiz Malik inaugurates the commencement of commercial production from OGDC’s Baragzai X-01 Well in Nashpa Block, in Islamabad on April 15. — PID

ISLAMABAD: The Oil and Gas Development Company Ltd (OGDCL) on Wednesday began commercial production from the highest-ever oil and gas discovery from a single well in the country’s history.

Baragzai X-01 (Slant) exploratory well in the Nashpa Block, Kohat district of Khyber Pakhtun­khwa, is now the highest-producing well and contributes approximately 10pc of OGDCL’s total crude oil production.

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

After Wednesday’s injection of 5,300 barrels of oil per day (bps), 17 million standard cubic feet per day (mmscfd) of gas, and 15 tonnes per day of liquefied petroleum gas, the cumulative production from the well has reached 15,000bpd and 45 mmscfd of gas.

Oil and gas production from the well is projected to reach 25,000 bpd and 60 mmcfd in the near future, the state-run energy firm announced.

In a significant operational achievement, an 8-kilometre pipeline was laid in record time, alongside critical modifications for gas processing and crude oil storage, and integration with Mela and Nashpa facilities.

The project is expected to generate substantial economic benefits.

The estimated daily revenue stands at Rs156 million, with monthly revenues projected at Rs4.7 billion and annual revenues at Rs57bn. The development will also result in annual foreign exchange savings of approximately $329m by reducing reliance on imported fuels, the company said.

Published in Dawn, April 16th, 2026

Follow Dawn Business on X, LinkedIn, Instagram and Facebook for insights on business, finance and tech from Pakistan and across the world.

Editorial

China green channel
31 Oct, 2026

China green channel

THE agreement between Islamabad and Beijing to set up a green channel at the Sost-Khunjerab border for agricultural...
Excessive punishment
31 Oct, 2026

Excessive punishment

THE supposed ‘crime’ did not justify a trial under terrorism laws, and certainly not the punishment. On ...
Forced conversions
31 Oct, 2026

Forced conversions

THE institutional bias against minority females leaves them to either be directly victimised or to live in ...
Candid admission
Updated 30 Oct, 2026

Candid admission

Both ruling and opposition parties have lost credibility and political ground due to their ongoing vendetta.
Disrupted LPG supply
Updated 30 Oct, 2026

Disrupted LPG supply

Blaming the Iran border closure is but an attempt to cover up the ministry’s failure to do its basic duty.
Judicial disaffection
30 Oct, 2026

Judicial disaffection

THE resignation of Justice Mohsin Akhtar Kayani from the Lahore High Court is another indicator of the deepening...