Pakistan Exploration & Production (E&Ps) companies along with international partners have ventured into offshore territory of underexplored but promising Indus G-Block for a deep-sea drilling endeavor. The operator of the block, ENI (an Italian company working in Pakistan’s upstream sector since 2000) has chartered Saipan 12000 rig/ship to drill the exploration well, located 230 kilometers southwest of Karachi in the water depth of more than 1,300 meters.
Exxon Mobil after its reentry into the Pakistani market after 3 decades has started drilling with initial cost of $75 Million initial cost. The well’s diameter is 18 to 24 inches. The target is to drill up to the depth of 5500 feet. After drilling Exxon Mobil will send a sample to Huston for examination and estimation of gas flow. ENI will also send a sample to Milan in March for examination. Any substantial discovery can be a good catalyst for Pakistan E&Ps (especially OGDC & PPL) as well as for attracting foreign investment into the sector. Further, it will also provide some respite to Pakistan’s depleting oil and gas reserve life which are estimated at 11 years and 14 years, respectively.
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