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Talks with China, Russia for developing hydrocarbon blocs

The government is in talks with China and Russia for the development of exploration blocs, which have been put on auction recently, said official sources on Monday. According to sources, 60 blocs have been offered so far and four blocs would be given to foreign exploration companies via government to government agreement. The Jati bloc in Sindh has already been given to Kuwait Foreign Petroleum Exploration Company (Kufpec), while talks were underway with Chinese and Russian companies for developing other blocs. Sources said that these four blocks would be in Sindh as the security and infrastructure situation was better there. Kufpec has signed a memorandum of understanding and a letter of intent with Pakistan to develop the Jati oil bloc in Sindh. Kufpec is the operator in a partnership with Pakistan Petroleum Limited (PPL) as stipulated by Pakistan’s provision of Petroleum Policy 2009. PPL is already partnering with Kufpec in the development of the Sukhpur bloc and Qadirpur gas field. However, this is the very first time that Kufpec would be the operator in developing a bloc in Pakistan.The Jati block is located near the PPL-operated Sirani bloc, which has a similar geological setting and where exploration activities in a relatively advanced stage with 3D seismic are underway. The Jati bloc, which is slated to host both conventional and unconventional reserves, will also benefit from PPL’s technical know-how and lead in the exploitation of unconventional reservoirs of tight and shale gas.

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