New Oil and Gas Deposits Unearthed
In a major boost for Pakistan’s energy sector, new oil and gas deposits have been discovered in the Kohat district, Khyber-Pakhtunkhwa. The find comes from a well jointly operated by OGDCL, PPL, and POL. Additionally, PPL has upgraded gas compressors in the Sui field, increasing fuel output from aging wells.
The new deposits are expected to enhance Pakistan’s energy security and reduce reliance on costly energy imports. Recent tests revealed 16.4 million cubic feet of gas per day and 159 barrels of oil per day from the Kawagarh-1 formation, drilled in January 2024.
The TAL joint venture, which includes OGDCL, MOL, PPL, POL, and GHPL, made the discovery. This find may boost further exploration and improve the country’s hydrocarbon reserves. POL and PPL also reported increased production from existing fields, with PPL’s compressor upgrades leading to a 19 million cubic feet per day increase in gas output.
These developments have positively impacted share prices at the Pakistan Stock Exchange. Previously, POL discovered significant new oil and gas fields in July 2024, contributing modestly to the national output.
With Pakistan heavily reliant on energy imports, the government’s new policy to offer higher tariffs on tight oil and gas is expected to encourage local production and reduce import needs.
