ISLAMABAD: Pakistan has announced a modest discovery of new oil and gas reserves in its northwestern Khyber Pakhtunkhwa (KP) province, state media reported on Friday, amid the country efforts to boost exploration to cut costly imports.

Pakistan faces a widening energy gap due to rising demand and limited domestic output, forcing reliance on costly fuel imports that expose the economy to global price swings. Its petroleum, oil, and lubricants import bill fell 4.39 percent to $9.046 billion in July 2025-January 2026.

The discovery was made at Lumshiwal Formation of Baragzai X-01 exploratory well. During Cased Hole Drill Stem Test (CHDST-04) conducted in the Hangu and Lumshiwal formations, the well produced 225 barrels of oil per day (BOPD) and 1.01 million standard cubic feet per day (MMSCFD) of gas through a 32/64’’ choke at a wellhead flowing pressure of 190 psig.

“Baragzai X-01 (Slant) was spudded on December 30, 2024, as an exploratory well to assess the hydrocarbon potential of multiple formations, including Lockhart, Hangu, Lumshiwal, Samana Suk, Shinawari, Datta and Kingriali.

The well was successfully drilled to a total depth of 5,170 meters into the Kingriali Formation,” the state-run APP news agency reported, citing the Oil and Gas Development Company (OGDC).

“Based on wireline log evaluations, three earlier cased hole drill stem tests were conducted in the Kingriali, Datta, and Samana Suk plus Shinawari formations, which also resulted in oil and gas discoveries. The latest test over Lumshiwal further confirms the commercial viability and hydrocarbon prospectivity of the block.”

The discovery was made under the Nashpa Exploration License. OGDC has a 65 percent working interest in the license, in partnership with Pakistan Petroleum Limited (30 percent) and Government Holdings Private Limited (5 percent).

“This discovery will strengthen Pakistan’s energy security by enhancing indigenous hydrocarbon production,” the exploration firm said. “It will add to the reserves base of OGDC and its joint venture partners while contributing toward narrowing the country’s energy supply-demand gap.”

Pakistan has reported several oil and gas discoveries recently. Although modest individually, their combined potential could boost domestic production and reduce reliance on imported energy.

In January, a discovery regarding an exploratory well, flowing at the rate of 4,100 barrels of oil per day (BOPD) and 10.5 million standard cubic feet per day (MMSCFD) of gas, was made in Kohat. In September 2025, Pakistan Petroleum Limited announced a discovery in Attock district, while Mari Energies reported a new gas find in North Waziristan.

Pakistan’s Sindh province dominates gas production with a 62 percent share and contributes 40 percent to oil output, while Khyber Pakhtunkhwa accounts for 41 percent of crude oil production. Punjab produces 18 percent of the nation’s oil, and Balochistan contributes just one percent, according to Topline Securities.