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ISLAMABAD:
Prime Minister Shehbaz Sharif on Thursday congratulated the nation on the discovery of significant new oil and gas reserves in Khyber-Pakhtunkhwa’s Kohat district, terming it a major milestone for Pakistan’s domestic energy sector.
Chairing a high-level meeting on the oil and gas sector, the Prime Minister lauded the dedicated work of relevant departments and stressed that prioritizing local exploration would help conserve valuable foreign exchange spent on oil imports.
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 (bpd) as well as 10.5 million cubic feet of gas per day (mmcfd).
“The Prime Minister congratulated the nation on this major discovery and appreciated the departments concerned for their dedicated work,” said an official statement issued after the meeting.
During the meeting, officials noted that domestic consumers have seen an improvement in gas pressure this winter. Work on RLNG connections has also been accelerated, with a target of 350,000 new connections by June 2026.
The gas pipelines to the Sheva and Batani gas fields have been commissioned, while the construction of the gas pipeline to the Kot Palak gas field is underway. The Prime Minister ordered priority digitalization of the entire supply chain for the import and domestic utilization of oil and gas.
“Through digitalization of the oil and gas supply chain, smuggling of these products will be effectively curbed, which will ultimately benefit the national exchequer,” the Prime Minister said during the meeting.
Earlier, OGDCL announced a major oil and gas discovery in Kohat district, describing it as a significant addition to Pakistan’s national energy resources. In a statement, the company confirmed that production had started from the Baragzai X-1 exploration well in the Nashpa block.
Drilled to a depth of 5,170 meters, the well revealed a 187 meter hydrocarbon zone within the Datta Formation. A cased hole drill pipe test confirmed its commercial viability, recording production with a 32/64 inch choke and a wellhead flow pressure of 3,880 pounds per square inch.
The Nashpa exploration permit is operated by OGDCL with a direct interest of 65%. Pakistan Petroleum Limited owns 30%, while The Government Holdings Private Limited holds the remaining 5%, according to a company spokesperson. “This discovery will not only strengthen the country’s energy reserves, but also help reduce dependence on imported oil and gas, thereby improving the balance between domestic supply and demand.”
This announcement follows an earlier discovery at the Baragzai X-01 (Slant) exploration well, announced in December 2025, which produced 2,280 b/d of oil and 5.6 million cubic feet per day of gas, marking the first hydrocarbon discovery from the Kingriali formation.
This well, drilled to the same depth of 5,170 meters, was seen as an important step in reducing the risks associated with deeper exploration and paving the way for new discoveries in the region.
OGDCL is also expanding its shale gas program, moving from a single test well to a five-to-six-well plan for 2026-2027, with expected production of 3-4 million standard cubic feet per day per well. If successful, officials said the program could eventually expand to hundreds or more than 1,000 wells nationwide.
Besides, Shehbaz chaired a review meeting on economic reforms, investment promotion and development projects. Highlighting the broader economic context, he stressed the importance of implementing government policies on economic governance without delay and called for practical proposals and a comprehensive strategy with minimal implementation time.
Prime Minister Shehbaz stressed that coordination between ministries and collaboration between the federal and provincial governments were crucial for effective reforms and sustainable economic growth.
The ministries have been directed to prepare recommendations to facilitate domestic and foreign investments, promote exports and ensure timely execution of development projects. The Prime Minister also asked Pakistani embassies across the world to provide initial orientation and relevant information to foreign investors.
Shehbaz further emphasized that all key sectors, including industry and agriculture, should be given equal attention to attract investments. Ministry representatives informed him of the progress of ongoing projects and updates on economic, institutional and administrative reforms.
The meetings were held in the presence of Deputy Prime Minister and Foreign Minister Senator Ishaq Dar, Federal Ministers Ahsan Iqbal, Attaullah Tarar, Ali Pervaiz Malik and Ahad Khan Cheema, Advisor to Prime Minister Rana Sanaullah, Special Assistant to Prime Minister Haroon Akhtar, Chief Secretaries of all provinces, National Coordinator of ITFC and other senior officials.
(WITH INPUT FROM THE APPLICATION)
