It was reported in the local media on 20 May 2019 that Eni Pakistan Ltd has decided to abandon the Kekra 1 new field wildcat (NFW) well within the Offshore Indus-G 2265-1 EL (Indus Fan) block after being unsuccessful in finding the hydrocarbons. It was reported to have been drilled to a TD of 5,634 m and the company was initiating the plug and abandon (P&A) operation. It is understood that penetration of target zone was started on 15 May 2019 with LWD tools and a good quality carbonate reservoir rock was encountered at 5,492 m depth but the LWD results suggested that it was mainly water-bearing with minor gas indications at the top of the structure. Kekra 1, located at 1,900 m water depth and around 230 km from the coast of Karachi city, was spudded on 13 January 2019 using the âSaipem 12000â drillship with a prognosed TD of 5,660 m in the Paleocene and it was mainly targeting the Eocene carbonates. The well had experienced mud loss problems during drilling due to which company had to sidetrack it twice â the second sidetrack hole in Kekra 1 was kicked off during mid-March 2019. Â   It was drilling at 3,345 m depth by the end of January 2019 and reached 3,960 m by mid-February. The well encountered a pressure kick while drilling through shales at 4,799 m depth during the third week of February 2019. It started experiencing mud losses when Eni attempted to control the kick by increasing mud weight and the company initiated the first sidetrack after setting cement plug at the kick zone. It is understood that the well encountered some problems with the first sidetrack which was then plugged at 3,100 m depth and the second sidetrack was subsequently initiated during mid-March 2019. The well was drilling at 3,787 m depth in the second sidetrack hole by the end of March 2019. The drilling was temporarily stopped in early April 2019 after reaching 4,810 m depth and cementing operation was carried out. It was followed by a setting of 9 5/8â casing at 4,810 m depth which was completed on 20 April 2019. The well was also facing some technical issues, mainly with the blowout preventer (BOP), which delayed the resumption of drilling activity till early May 2019. After resuming drilling activity in early May 2019, the well was reported to have reached 5,148 m depth on 7 May 2019 and progressed to 5,392 m depth on 10 May.    Kekra 1 was the first offshore well in the country after a gap of nine years â the previous one, Shark 1, was drilled in 2010 by ENI in a different block which was plugged and abandoned. The drilling activity was initially expected to take around 60 days and the cost was estimated as USD 70 to 80 million, which in the end exceeded USD 100 million. The Kekra structure was evaluated as a high risk, high reward gas prospect comprising a carbonate build-up over 425 sq km area. It had an estimated resource potential of 9 Tcf.    Offshore Indus-G EL currently covers an area of 5,928 sq km in the Arabian Sea. It is located in water depth ranging between 1,640-2,930 m and the current equity split is as follows: Eni Pakistan Ltd (25%, operator), OGDCL (25%), Pakistan Petroleum Ltd (PPL) (25%) and ExxonMobil (25%).    One well, Pak-G2-1, has been previously drilled in the acreage which was countryâs first deepwater well (located at a water depth of 2,698 m) and was plugged and abandoned (P&A) in June 2004 after encountering minor hydrocarbons.    Â   Background Information    The Offshore Indus-G EL block, which originally covered an area of 7,466 sq km, was initially awarded to Total under the Production Sharing Agreement (PSA) terms on 3 July 2003 â it was awarded together with Offshore Indus-H ELÂ  and the two awards were made under the 'Offshore Petroleum Exploration and Production Policy,' which was approved in January 2001 and provided for a new profit oil / profit gas split for ultra deep water (>1,000m), in addition to several other economic and fiscal incentives.   OMV (Pakistan) Exploration farmed-in to the acreage for a 15% stake with effect from 18 January 2003, with Mari Gas Company Ltd (MGCL) (now Mari Petroleum Company Ltd) farming-in for a 5% stake with effect from 17 February 2003, Petronas Carigali (Pakistan) Ltd farming-in for a 30% stake with effect from 21 February 2003 and OGDCL farming-in for a 10% stake with effect from 30 March 2003, leaving Total holding operatorship and 40% equity.    The country's first ever deep-water exploration well, Pak-G2-1, was subsequently drilled and it was P&A on reaching a final TD of 4,750m in late June 2004 - no significant hydrocarbons having been encountered. The well, which was located in a water depth of 2,713m, was targeting an Eocene-Paleocene carbonate build-up and although the objective was penetrated as prognosed, it was found to be water wet on logging and no test programme was undertaken.   Total E&P Pakistan, OMV (Pakistan) Exploration, Petronas Carigali (Pakistan) Ltd and Mari Gas Co Ltd (MGCL) assigned their respective interests in the licence to OGDCL with effect from 31 December 2004, as a result of which the latter held operatorship and 100% equity.   Having already been granted a four-month extension to the second contract year with effect from 3 July 2005 (extended by a further six months), the licence was granted an additional extension from 3 May 2006 up to the execution date of the Assignment Agreement with Petrobras. OGDCL assigned 50% working interest in the licence to Petrobras Oil & Gas BV with effect from 9 February 2007, as a result of which the equity split was as follows - OGDCL (50%, operator) and Petrobras Oil & Gas BV (50%). A one-year extension took effect from the same date and was supplemented by both a four-month extension and a six-month extension.   It is understood that Petrobras subsequently exit the block in 2009 leaving OGDCL with 100% interest. An additional five-month extension was granted to the initial exploration phase of the Offshore Indus-G EL with effect from 9 December 2008.   Eni Pakistan Ltd acquired 25% interests and operatorship from OGDCL in this block on 13 December 2012. PPL and United Energy Pakistan Ltd (UEPL) also farmed-in at same time and as a result the equity split was as follows: Eni Pakistan Ltd (25%, operator), OGDCL (25%), PPL (25%) and UEPL (25%).  UEPL subsequently surrendered its 25% working interest in Q3 2015 and as a result, after the conclusion of the assignment agreement, the equity is as follows: Eni Pakistan Ltd (33.33%, operator), OGDCL (33.33%) and PPL (33.33%).     Eni was granted a four-month extension to initial term from 1 July 2014 to 31 October 2014. The company was granted the first two-year renewal to Offshore Indus-G with effect from 1 November 2014. It also involved relinquishment of 20% area reducing the total area to 5,928 sq km.    Eni was granted a 15-month extension to the first two-year renewal period of the block from 1 November 2016 to 31 January 2018. It was followed by a further 18-month extension from 1 February 2018 to 31 July 2019.  ExxonMobil acquired 25% participating interest in the block on 28 May 2018. A Deed of Assignment in this regard was executed between Directorate General Petroleum Concession (DGPC), ExxonMobil Exploration and Production Pakistan BV, ENI, PPL and OGDCL. Each of the three existing companies in the block, ENI, PPL and OGDCL, assigned 8.33% interest to ExxonMobil which resulted in the revised equity split is as follows: Eni (25%, operator), OGDCL (25%), PPL (25%) and ExxonMobil (25%).
Kekra 1 (Eni op. 25%, ExxonMobil 25%, PGDC 25% + PPL 25%), 1st offshore well in 9 years, in Indus-G 2265-1 EL block, twice sidetracked, P&A, local reports claim dry (reservoir was encountered, but it was water-bearing). The news was broken by Special Assistant on Petroleum to the Prime Minister, Nadeem Babar. PTD was 5660m, target Eocene carbs, WD ab. 1900m.