Pakistan has discovered one of the largest oil and gas reserves in Khyber Pakhtunkhwa. Some estimates suggest that these might be the 4th largest reserves in the world.
Location of the reserves
Th reserves were found in the Baragzai X-1 exploratory well in the Nashpa block of Kohat district. The Oil and Gas Development Company Limited (OGDCL) announced the discovery and highlighted how the reserves could redraw Pakistan’s furture. The reserves will significantly narrow down the country’s energy-supply demand reducing its dependence on foreign imports.
Impact of discovery
This discovery will allow the country to cut costly imports and boost further exploration efforts. However, the exploration is likely to cost $5 billion and offshore extraction will take approximately 5 years. Pakistan faces a widening energy gap and the recent US-Iran war has further impacted the country’s energy reserves. These reserves will likely stabilize Pakistan’s import-export gap.
The current volatility of the global market has negatively impacted Pakistan’s energy sector and exposed its reliance on imports. Nonetheless, this discovery along with other modest reserves can cover Pakistan’s domestic fuel shortage.
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