ISLAMABAD: Pakistan on Wednesday launched commercial production from the largest-ever oil and gas discovery from a single well in its history, according to a statement, with the Baragzai X-01 well expected to generate around $329 million in annual foreign exchange savings by cutting reliance on imported fuels.
The country relies heavily on imported energy, with oil and gas forming the largest component of its import bill and exerting sustained pressure on foreign exchange reserves. Expanding domestic production has remained a key policy priority to ease external account stress and strengthen energy security.
The Baragzai X-01 well, located in the Nashpa Block in Kohat district of Khyber Pakhtunkhwa, is currently producing around 15,000 barrels of oil per day (bpd) and 45 million standard cubic feet per day (mmscfd) of gas, along with 15 metric tons per day of liquefied petroleum gas, following an initial injection of 5,300 bpd of oil and 17 mmscfd of gas.
Output is projected to rise to 25,000 bpd of oil and 60 mmscfd of gas in the near term, making it the highest-producing well in the country’s history.
“Baragzai X-01 is now the highest-producing well in OGDC’s portfolio as well as in Pakistan’s history and contributes approximately 10 percent of Pakistan’s total crude oil production,” the Oil and Gas Development Company (OGDC) said in a statement. “The company successfully brought the well into production following the testing and completion phase.”
The company, Pakistan’s largest exploration and production firm, said the discovery spans five different formations and was developed in challenging terrain using advanced technologies.
“The project is expected to generate substantial economic benefits,” it said. “The estimated daily revenue stands at Rs156 million [$560,000], with monthly revenues projected at Rs4.7 billion [$16.9 million] and annual revenues at Rs57 billion [$204.7 million].”
“The development will also result in annual foreign exchange substitution of approximately USD 329 million by reducing reliance on imported fuels,” the company added.
OGDC said it laid an 8-kilometer pipeline in record time and carried out key modifications for gas processing and crude storage, integrating the well with Mela and Nashpa facilities.
Federal Petroleum Minister Ali Pervaiz Malik, who inaugurated the project, described the discovery as a significant step toward strengthening Pakistan’s energy security and reducing dependence on imported fuels.
