Kailashtila Field was discovered by Pakistan Shell Oil Company (PSOC) in 1961. A gas well (Kailashtila-1) was completed in June 1983 with the initial production of 30 MMCFD. Later, three more wells namely KTL-2 (1988), KTL-3 (1988) & KTL-4 (19996) were drilled in this field. Gas of Kailashtila has a very high condensate ratio in comparison to Haripur Gas Field. The well KTL-5 added to the field with a production capacity of 15 MMSCF per day with a condensate ratio 40 bbl/MMCF. Another well KTL-6 started producing from 8th August 2007. Production of KTL-5 ceased on 22 October 2009 due to excessive water production and reduction of well head pressure. The well KTL-7 added to the field with a production capacity of 6 MMSCFD. The production ceased from KTL-7 on 01-11-2016 due to reduction of well head pressure. The Production ceased from KTL-5 on 14-03-2014 due to reduction of well head pressure and excessive water production.

A 30 MMSCFD capacity solid desiccant (silicagel) plant started operation since 1983 at the location of KTL-1. Presently gas production from wells KTL-1 and KTL-5 is being processed through this silicagel plant.