ISLAMABAD, April 15, 2026 — Oil and Gas Development Company Limited (OGDCL) has commenced commercial production from its landmark Baragzai X-01 (Slant) exploratory well, marking the largest oil and gas discovery from a single well in Pakistan’s history and boosting the country’s energy outlook.
The well, located in the Nashpa Block in Kohat district of Khyber Pakhtunkhwa, was formally inaugurated by Federal Minister for Petroleum Ali Pervaiz Malik at a ceremony held at the company’s headquarters in Islamabad. Senior government officials, including Petroleum Secretary Hamid Yaqoob Sheikh, and OGDCL’s Managing Director and CEO Ahmed Hayat Lak, attended the event along with industry representatives.
The Baragzai X-01 well has demonstrated exceptional output levels. Following fresh injections on Wednesday of 5,300 barrels of oil per day (BPD), 17 million standard cubic feet per day (MMSCFD) of gas, and 15 metric tons per day (MTD) of liquefied petroleum gas (LPG), cumulative production has reached approximately 15,000 BPD of oil and 45 MMSCFD of gas. Output is projected to rise further to 25,000 BPD and 60 MMSCFD in the near term.
The discovery spans five hydrocarbon-bearing formations, highlighting the significant untapped potential of the region. Developed in challenging terrain, the project leveraged advanced drilling and production technologies to ensure efficiency and operational safety. OGDCL also completed an 8-kilometre pipeline in record time, alongside upgrades to gas processing and crude storage infrastructure, integrating the well with existing Mela and Nashpa facilities.
Industry officials said Baragzai X-01 is now the highest-producing well in both OGDCL’s portfolio and Pakistan’s upstream sector, contributing nearly 10% of the country’s total crude oil output.
The project is expected to deliver substantial economic gains. Estimated daily revenue stands at Rs156 million, translating into Rs4.7 billion per month and roughly Rs57 billion annually. It is also projected to reduce Pakistan’s reliance on imported fuels, generating foreign exchange savings of around $329 million per year.
Speaking at the ceremony, Malik described the discovery as a major milestone for Pakistan’s energy security and praised local exploration and production firms for their resilience. Lak reaffirmed OGDCL’s commitment to expanding exploration efforts and enhancing production capacity.
Analysts say the development strengthens Pakistan’s push toward energy self-sufficiency while supporting broader economic stability by curbing the import bill and unlocking domestic hydrocarbon resources.