Pakistan begins production from record oil and gas discovery

Pakistan has begun commercial production from its largest-ever single oil and gas discovery, Arab News said in a report. Quoting the government and Oil and Gas Development Company (OGDC), the report said the project is expected to significantly reduce import dependence and save foreign exchange. The Baragzai X-01 well, situated in the Nashpa Block of Kohat district in Khyber Pakhtunkhwa, is currently producing a significant amount of energy resources each day. It is currently producing 15, 000 barrels of oil, about 45 million cubic feet of natural gas, and roughly 15 metric tons of liquefied petroleum gas (LPG) daily. Output is expected to rise further to 25, 000 barrels of oil and 60 million cubic feet of gas per day, making it the highest-producing well in Pakistan’s history. The OGDC said the well accounts for roughly 10 per cent of the country’s total crude oil production and has been brought into production after successful testing and completion. The company estimates the project will generate daily revenue of around Rs156 million, with annual revenues of approximately Rs57 billion. It also expects foreign exchange savings of about $329 million annually by reducing reliance on imported fuels. The discovery spans five geological formations and was developed using advanced technology in a challenging terrain, the OGDC said. An 8-kilometre pipeline was also laid to integrate the well with existing facilities. Federal Petroleum Minister Ali Pervaiz Malik inaugurated the project, calling it a major step toward strengthening Pakistan’s energy security and easing pressure on foreign exchange reserves.

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