Oil & Gas

The Oil & Gas Development Company Limited (OGDCL) announced a significant gas discovery in Pakistan on Monday, July 29, 2024. The find, located in the Kohat district of Khyber Pakhtunkhwa province, was made in the Razgir-1 exploration well, which was drilled on January 29, 2024, in the Taal Block. This discovery follows a previous gas find in the same region reported in March 2024.

OGDCL reports that the new well is producing 20 million cubic feet of gas per day along with 250 barrels of condensate. The well was drilled to a depth of 3,950 meters, and initial tests showed a wellhead pressure of 2,000 and 349 psi. The discovery is expected to mitigate Pakistan's ongoing energy crisis, which has forced the country to import expensive gas due to dwindling domestic production.

The Taal Block exploration license is jointly owned by several entities: OGDCL and Pakistan Oil Company Limited (PPL) each hold 30%, Pakistan Oilfield Company Limited (POL) holds 25%, and Hungary's MOL operates the block with a 10% stake. A government-owned private holding company holds the remaining 5%. The discovery could reduce exploration risks and open up new opportunities for boosting domestic hydrocarbon supplies.

In related news, on July 15, Pakistan Oil Fields Corporation reported another notable discovery at the Jhandial-03 well in the Attock region. This well, drilled to a depth of 17,778 feet, has produced 714 barrels of crude oil and 10 million cubic feet of natural gas per day. The new finds come as Pakistan faces a severe energy crisis, with gas production falling short of demand and significant reliance on costly fuel imports.