The investment on the block, which is in the offshore Indus Basin, is dependent upon favourable 3D seismic survey results.
According to the insider, “Shell has already spent US$12-US$15 million on the block, which is about 150 km south of Karachi, but a further US$25 million investment would be made if the survey shows the presence of hydrocarbons.”
“The company hopes to make a final decision on the drilling by the end of this year. We are currently evaluating the survey results and the risk factors involved [and] Shell’s block is close to Total’s offshore block G, which the French explorer earlier abandoned, as it was unable to find significant hydrocarbon presence,” added the source.
Shell is the operator of the Block and holds a 47.5% stake. Its other partners are Kufpec Pakistan (23.75%), Premier (23.75%) and the Government Holdings of Pakistan (5%).