Baragzai X-01 Discovery in Nashpa Block, Khyber Pakhtunkhwa
Oil and Gas Development Company Limited (OGDCL) has announced a major oil and gas discovery at its Baragzai X-01 (Slant) exploratory well in the Nashpa Block, located in District Kohat, Khyber Pakhtunkhwa. The find is being described as a significant addition to Pakistan’s indigenous hydrocarbon resources at a time when the country is struggling with a costly import bill and recurring energy shortages.
According to a notice sent to both the Pakistan Stock Exchange and the London Stock Exchange, OGDCL operates the Nashpa Exploration Licence with a 65 percent working interest. Its joint venture partners include Pakistan Petroleum Limited (PPL) with a 30 percent stake and Government Holdings (Private) Limited (GHPL), which holds a 5 percent carried interest.
The Baragzai X-01 (Slant) well was spud on 30 December 2024 and drilled to a total depth of 5,170 metres into the Kingriali Formation. The discovery has renewed optimism around the Nashpa Block’s potential and the broader prospects of local exploration in Khyber Pakhtunkhwa.
Strong Production Test Results From Datta Formation
The latest discovery was made in the Datta Formation of Jurassic age during a cased-hole Drill Stem Test (DST-02). During testing, the Baragzai X-01 well produced around 4,100 barrels of oil per day and 10.5 million standard cubic feet of gas per day.
These flow rates were recorded at a 32/64 inch choke size, with a wellhead flowing pressure of 3,880 pounds per square inch gauge (psig). The well encountered a gross hydrocarbon-bearing interval of about 187 metres in the Datta Formation, with the discovery supported by strong hydrocarbon shows during drilling, petrophysical evaluation and fracture indications on image logs.
Earlier, an initial test in the deeper Kingriali Formation (Triassic age) at the same well had also resulted in a successful discovery. Together, the positive results from both formations show that the Nashpa Block holds multi-layered potential and may support further exploration and appraisal activity in the area.
Why This Discovery Matters for Pakistan’s Energy Security
Pakistan remains heavily dependent on imported oil and liquefied natural gas (LNG) to meet its growing energy needs. This dependence leaves the economy exposed to global price spikes and foreign exchange pressures. Every sizeable local discovery therefore carries strategic importance, even if it does not fully replace imported volumes on its own.
OGDCL has said that the Baragzai X-01 discovery will help bridge the country’s energy supply–demand gap by adding to indigenous reserves. Incremental local production of crude oil and natural gas can reduce the need for expensive imports, support refinery throughput, and improve fuel availability for power generation, industry and transport.
Additional domestic output also supports the government’s broader policy goal of enhancing energy security through a mix of local fossil fuels, renewable energy and efficiency measures. For investors, each new successful well reinforces the case for continued exploration in under-explored basins across the country.
Technical Success Strengthens OGDCL and Joint Venture Partners
For OGDCL and its partners, the Baragzai X-01 result is a technical and commercial milestone. The well was drilled to a demanding depth of over five kilometres and required careful planning, modern logging tools and detailed subsurface analysis to identify productive zones and manage risk.
The presence of hydrocarbons in both the Kingriali and Datta formations at the same location helps de-risk deeper and multi-layered exploration in the Nashpa Block. It may also encourage the joint venture to fast-track development plans and consider additional appraisal wells to define the full size of the discovery.
At the corporate level, new discoveries enhance OGDCL’s reserve base and production outlook, which can support long-term revenues for the company and dividends for the government, which remains its largest shareholder.
Next Steps: From Discovery to Production
While the initial test results from Baragzai X-01 are encouraging, further work will be needed to move from discovery to sustained commercial production. This typically includes additional testing, reservoir studies, facility design and the laying of pipelines to tie the well into existing processing and transmission networks in the region.
If developed efficiently, the new oil and gas volumes from the Nashpa Block could support local power plants, industries and fuel markets in Khyber Pakhtunkhwa and beyond. The discovery also sends a positive signal to Pakistan’s broader exploration and production sector that new finds are still possible with modern technology and targeted drilling.
For now, the Baragzai X-01 success stands out as a reminder that sustained exploration can still deliver meaningful gains for Pakistan’s energy balance, provided that promising geological prospects are pursued with discipline, investment and technical expertise.
