Halcrow Pakistan (Pvt) Limited

3rd Floor, Nawa-e-Waqt House, Mauve Area

Sector G-7/1, Zero Point, Islamabad, Pakistan
tel + 92 51 220 3451 fax + 92 51 220 3462
www.halcrowpk.com
 EIA for Drilling of Kekra-1 Exploration Well in Offshore Indus Block G (2265-1)

Executive Summary

ES.1 Introduction
This report presents the findings of an Environmental Impact Assessment (EIA)
carried out by Halcrow Pakistan (Pvt.) Limited (HPK) for the proposed drilling of
Kekra 1 exploration well in Offshore Indus Block G (2265 1). Eni Pakistan Limited has
proposed to conduct exploratory drilling of Kekra 1 well to determine if the
production of hydrocarbons is viable within its Offshore Indus Block G (2265 1).

Pursuant to the requirements of Pakistan Environmental Protection Act, 1997 (PEPA,

97) and the Pakistan Environmental Assessment Procedures, 1997 an Environmental
Impact Assessment (EIA) study is being carried out on the advice of Pakistan
Environmental Protection Agency for the proposed drilling of Kekra 1 exploration
well in Offshore Indus Block G. Offshore Indus Block G falls in Exclusive Economic
Zone (EEZ) of Pakistan. EEZ is referred as an area beyond and adjacent to the
territorial waters (the limit of the territorial waters which are subject to applicable
provincial laws, is 12 nautical miles beyond the land territory and internal waters of
Pakistan measured from the baseline), the limit of which is 200 nautical miles from the
baseline hence, the proponent of the project is liable to follow the applicable federal
laws. Government of Pakistan has discretion to declare any area of the continental
shelf and its superjacent waters and the EEZ to be a designated area and make
provisions as it may deem necessary for the protection of marine environment of such
areas and the same applies to the Exclusive Economic Zone under the Pakistan
Territorial Waters and Maritimes Zones Act, 1976. Eni proposed drilling
operation in Offshore Indus Block G falls within the range of EEZ limits of Pakistan,
therefore the proponent of the project is liable to follow the provisions of PEPA, 97 on
strict basis.

This EIA report presents the findings and assesses the potential adverse
environmental impacts of the proposed exploration and associated support operations
on the existing marine environment, identifies necessary mitigation measures to
minimize these effects and provides a mechanism for the execution of these measures
via an environmental management & monitoring plan.

ES.2 Objectives of the EIA

The overall objectives of the EIA are to:
To meet or surpass the environmental requirements of relevant authorities in
Pakistan, Eni specifications and commitments pertaining to
environmental and social issues, IFC guidelines and standards with appropriate
compliance of other relevant international conventions;

To identify and analyze sensitive components of the existing environment. Review

the existing knowledge and document the regional and site specific baseline state

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 EIA for Drilling of Kekra-1 Exploration Well in Offshore Indus Block G (2265-1)

and define additional parameters to be investigated in order to describe the pre

project environment. All media potentially affected shall also be considered;
To determine the type, nature and importance of the anticipated environmental
impacts during proposed exploration project;

To identify and recommend practical and cost effective mitigation measures early
in the process to eliminate, minimize, mitigate or avoid environmental impacts
resulting from the proposed exploration project;
To recommend a framework for an environmental management and monitoring
plan for the proposed Kekra 1 drilling in Indus Block G; and

To ensure that all stakeholders deemed to be influenced by the exploration project

or associated support activities are fully considered, and that communication
systems are established during the assessment process and remain effective
throughout the life of the proposed project activities.

ES.3 The Project Proponent

Eni S.p.A. (Eni) is one of the world s largest integrated energy companies and is
currently engaged in oil and natural gas exploration, field development and
production, as well as the supply, trading and shipping of natural gas, LNG, electricity
and fuels and operates across the entire energy chain. Eni is present in all phases of the
gas energy business ranging from extraction, liquefaction, gas feeding, shipping,
regasification and sale directly or indirectly through presence in the local markets and
through interests in joint ventures.

Eni Pakistan Limited has been successfully exploring and producing in Pakistan for
over 30 years and is among the largest international oil and gas exploration &
production (E&P) company in Pakistan. Currently, its portfolio comprises of three
operated Development and Production (D&P) Leases, namely Bhit, Badhra and
Kadanwari and four non operated D&P Leases, namely Miano, Sawan, Latif and
Zamzama. In addition, it has four operated exploration blocks, of which three are
offshore namely, Offshore Indus C, N and G and Sukhpur while two non operated
exploration blocks namely, Latif and Mubarak. Company is ISO 14001 & OHSAS
18001, ISO 26001 standards certified.

ES.4 Offshore Indus Block G (2265-1)

The Government of Pakistan granted an exploration licence, effectively 3rd July, 2003 to
Government Holding (Pvt.) Limited (GHPL) in respect of Offshore Indus Block G
(2265 1). Simultaneously GHPL, entered into a Production Sharing Agreement (PSA)
with a joint venture of Oil and Gas companies operating in Pakistan. Effective 12th
December 2012, Eni Pakistan Limited, acquired the participating interest and became
the Operator of the Indus Block G (2265 1).
Currently, Block G covers a total area of approximately 5,947.95 square kilometres
(km2) and located at an approx. distance of 130 nautical miles (240 km) in south of

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 EIA for Drilling of Kekra-1 Exploration Well in Offshore Indus Block G (2265-1)

Karachi shoreline. The block is located in deep waters of Arabian Sea and depth of
water within the block varies from 1,500 3,000 meters (see Figure ES 1).
ES.5 Exploration History of Offshore Indus Block G
In year 2000 Fugro Geoteam AS performed 2D marine seismic on behalf of Total
Exploration Production Pakistan over Offshore Indus Block G and adjacent areas.
Overall 61 lines, having 7,945 km full fold data was acquired by using streamer in
November & December, 2000. The data was acquired using a digital seismic survey
package consisting of the following systems:

Vessel name M/V Geo Baltic

G gun source, 4Xsub array, total volume 3,410 cu.in, depth 5 m

6,000 m cable length, 12.5 group interval, streamer depth 6 m

Single channel Echo Sounder

Multichannel 24 bit optical cable recording system

Gravity (Fugro LCT)

Magnetometer (Fugro LCT)

Pak G2 1 was the first wildcat exploration well drilled with in the Offshore Indus
Block G (2265 1) by Total E&P Pakistan in a water depth of 2,712 m in 2004. The
drilling started on 15th May, 2004 and reached the bottom of the well on 13th June, 2004
(end of operation on 18th June, 2004). Total depth 4,750 m below Rig Floor 4,724.2 m
below sea level). Minor gas shows were recorded, but no trace of liquid hydrocarbons
was noticed. The well, considered dry was plugged and abandoned. The total duration
of the well (including the abandonment) was 36 days for which surface coordinates are
provided below:

Geographical: Longitude 65° E Latitude 22° N

UTM 42 North: X 169 117 m E Y 2 447 943 m N

Datum Kalianpur 1962 (Fugro/Karachi)

Spheroid Everest 1830 (1962 definition)

In year 2007 BP Exploration (Aplha) acquired 2D seismic survey over Offshore Indus
Block U, V , W & G. Total 100 line were acquired by using Air Gun Source, 26 lines of
BP07 survey (1,147 line km) were present with in Offshore Indus Block G. Following
were acquisition parameters:

Vessel name M/V Geo Searcher

Bolt air gun source, total volume 4,200 cu.in, depth 6 m

6,000 m cable length, 12.5 group interval, streamer depth 6 10 m

JV of Block G entered in the first two years renewal with effective from 1st November,
2014 with a commitment of 1,543 work units and relinquishment of 20% of the original

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 EIA for Drilling of Kekra-1 Exploration Well in Offshore Indus Block G (2265-1)

license acreage. The current license covering area is 5,947.95 km2. The current license
validity is July, 2018. Figure ES 3 details the previously conducted exploration
activities in Indus Block G and surroundings.
ES.6 The Proposed Project
Eni Pakistan Limited has proposed to conduct exploratory drilling of Kekra 1 well in
first quarter of 2019 to assess the potential viability of the hydrocarbon reservoir for
future development within its Offshore Indus Block G (2265 1). As mentioned above
the Offshore Indus Block G has an average depth ranging from 1,500 3,000 meters.
Kekra 1 exploratory well is located at approximately 270 km (145.8 nautical miles)
from Karachi port/shore, in water depth of approx. 1,900 meters. Due to water depth
in the area, it is anticipated that exploratory drilling will be conducted using a 6th
Generation Ultra Deep Water Drillship. The ultra deep water drillship will be kept in
position using a dynamic positioning system (DPS) which allows for minimal subsea
disturbance due to its ability to operate without moorings. A significant benefit to
using an ultra deep water drillship is the ease of mobility as it is a self propelled vessel
with the flexibility to move from location to location without the need of transport
vessels.

For supporting offshore drilling activities, an onshore marine base, proposed at West
Wharf, Karachi Port will also be established for logistics purposes, as material transit
area and point of embarkation/disembarkation of equipment and personnel with
utilization of multiple modes of transportation including supply vessels & fast boats.
Tentative area of the onshore marine base would be between 6,000 to 8,000 m2 (see
Figure ES 2).
The proposed drilling location of Kekra 1 exploratory well is based on number of
factors, including analysis of seismic data, the geological target (the hydrocarbon
bearing geology into which the well is to be drilled), and the presence of any seafloor
obstacles. Chapter 3 of this EIA report describes the offshore well drilling procedure,
technological options, proposed well design and other related aspects that will be used
during the proposed drilling of Kekra 1 exploratory well in Offshore Indus Block G
(2265 1).

ES.7 Biological Resources

Phytoplanktons consist of microscopic marine plants and represent an important part
of the marine ecosystem. Based on the available data more than 200 species of diatoms,
59 species of cocolithophorides, 150 species of dinoflagellates are known to occur in
the entire stretches of Arabian Sea and its associated coastal areas. Crustacean fauna
include 25 species of penaeidae shrimps and three species of edible crab.
Approximately, 400 pelagic and demersal fish species are known to exist in the project
area covering Indus Offshore Block G and West Wharf. These species belong to 21
orders, 9 suborders and 118 families. 18 dominant marine mammals also exist and
reported from the Indus G Block. So far, a total of 160 avian species have been
recorded from the Sindh coastal and allied areas. Five species of marine turtles and

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 EIA for Drilling of Kekra-1 Exploration Well in Offshore Indus Block G (2265-1)

fourteen species of sea snakes belonging from seven genera have also been widely
reported from the coastal waters of Arabian Sea.
ES.8 The EIA Methodology
The overall approach to the study is designed to ensure that the national and
provincial relevant legislations, international agreements and corporate commitments
of Eni Pakistan Limited are fulfilled. Baseline offshore environmental information for
was collected from published literature, previously conducted environmental studies
within or closer vicinities of the Offshore Indus Block G, and authoritative & verifiable
secondary resources. Field visit for proposed onshore base and immediate
surroundings were visited in the month of April, 2018 for collection of relevant
baseline environmental data. The methodology for the study is as follows:

a. Consultation with Stakeholders

The study commenced with a consultation exercise intended to identify and clarify
any issues of stakeholders that could be of importance to the Environmental Impact
Assessment (EIA), gather and disseminate information, maintain communication and
flow of information with the stakeholders, and develop linkages between Eni Pakistan,
HPK and the stakeholders.
The consultation exercise includes the following three phases:

Phase 1 Identification of key stakeholders;

Phase 2 Consultation with key stakeholders; and

Phase 3 Ongoing consultation during project implementation.

Phase 1 Identification of Key Stakeholders

The key stakeholders identified for this project include National Institute of
Oceanography (NIO), Worldwide Fund for Nature (WWF) Pakistan, Marine Fisheries
Department (Govt. of Sindh), International Union for Conservation of Nature (IUCN)
Pakistan, Sindh Environmental Protection Agency (SEPA), Karachi Port Trust (KPT),
Marine Pollution Control Department KPT, Centre of Excellence in Marine Biology
(Karachi University), Pakistan Maritime & Security Agency (PMSA), Sindh Wildlife
Department (SWD), Pakistan Environmental Protection Agency and Ministry of
Climate Change (Biodiversity Program). Details & photographic record of
consultation is provided in Chapter 6 of this EIA.

Phase 2 Consultation with Key Stakeholders

Meetings were held with the abovementioned organizations, and their concerns about
the proposed exploration drilling and necessary support operations, their expectations
from the EIA study, and their views and criticism regarding the implementation of the
previous offshore operations were discussed during the meetings. Feedback from
these stakeholders have been incorporated in the EIA. The summary of major concerns
and suggestions identified during the meetings is also presented in Chapter 6 of this
EIA report.

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Phase 3 Ongoing Consultation during Project Implementation

Consultation with the stakeholders will continue throughout the duration of the
project in order to address genuine concerns of the stakeholders that may arise during
the implementation of the project.
b. Data Collection

During this task the following information was collected from national and
international sources:

Geological and geophysical data including meteorology, bathymetry, seabed

morphology, sediment nature and distribution;

Physical oceanographic conditions including wind and current systems, tides,

water temperatures and salinity;
Biological oceanographic data including primary and secondary productivity and
details about particular marine life in the area;

Fisheries data including major species, migratory routes of fish, fishery

production, breeding grounds, endangered species and threatened habitats; and
Navigational data including main shipping lanes, trade routes and volume of
traffic.

c. Develop an Understanding of the Proposed Project Operation

A review of the proposed project activities including specific information about the
operational methods and procedures, the types of equipment to be used and the
planned time frame for the activities was obtained from Eni Pakistan Limited.
Information on alternative methods and equipment and best industry practices has
been obtained using case histories and published data. The information collected has
been used to identify and evaluate the impacts of the proposed activities, to suggest
alternative practices where feasible, and to develop the mitigation options and
monitoring program.

d. Review of Previous Exploration Activities Conducted in Offshore Pakistan

Information provided by various stakeholders on previously performed exploration

activities were reviewed in detail to gain better understanding of the environmental
issues pertaining to the proposed offshore exploration project activities. Any short
comings in the recommendations of the previous reports were incorporated into the
present.

e. Develop a Synopsis of Potential Impacts

Identification of the likely impacts arising from the proposed exploration drilling
operation and other associated ancillary activities, such as waste generation and
unplanned events/emergencies (accidental oil spill, vessels collision etc.). The impacts
were identified by literature review of experiences from similar offshore exploration
activities in other parts of the world, results of relevant scientific studies, previous

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 EIA for Drilling of Kekra-1 Exploration Well in Offshore Indus Block G (2265-1)

operations carried out in Pakistan, and the likely impacts discussed in Pakistan EPA
guidelines for offshore exploration activities. The identified impacts were then
assessed on the basis of their severity and likelihood using a risk based approach in
line with Technical Guidelines.
f. Recommendations for Mitigation Measures

After identification and assessment of impacts, mitigation measures were

recommended to minimize the likelihood or severity of each impact identified. The
mitigation measures were adopted from international sources like the guidelines for
offshore operation prepared by the Joint Nature Conservation Committee, the UK and
Pakistan EPA guidelines.

g. Development of an Environmental Management Plan

For effective implementation of the mitigation measures an Environmental

Management Plan, including controls to mitigate the identified impacts, and
monitoring program to monitor impacts, if any, during the operation has been
prepared. The Environmental Management Plan also lays down procedures to be
followed during the exploration drilling activities and identifies roles and
responsibilities for all concerned personnel during the operation.
ES.9 Structure of the EIA
In order to achieve the above mentioned objectives, complete EIA has been distributed
into two separate volumes i.e. Volume I, EIA Report and Volume II, Environmental
Management Plan.

Volume I

EIA Report is presented as Volume I which encompass the national and international
policies and regulatory framework governing the proposed project and presented in
Chapter 2 of this EIA. The project description has been described in Chapter 3
whereas, analysis of alternatives have been provided in Chapter 4. The different
components of the receiving environment (e.g. air, climate, land, seawater, marine
ecology, biodiversity and human environment) are presented in Chapter 5.
Stakeholder identification, consultation record and analysis is presented in Chapter 6.
An environmental impact analysis is also carried out to identify both the positive and
negative impacts of the proposed exploration project followed by the mitigation
measures required to eliminate/reduce the negative impacts which is provided in
Chapter 7 which include the planned and unplanned events. Detailed list of
documents consulted for the preparation of EIA is also attached at end of the EIA
report. Biodiversity and Ecosystem Services (BES) Critical Habitat Screening based
on secondary resources is provided as Appendix A whereas, Comprehensive
Meteorological Information of Arabian Sea focusing Offshore Indus Block G (2265 1) is
presented as Appendix B of the Volume I.

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Volume II

Following that, an Environmental Management Plan (EMP) which presents a

framework for providing guidance for developing suitable environmental
management and monitoring practices is discussed and presented as Volume II of
this study. Project specific Oil Spill Contingency Plan is presented as Appendix A and
Waste Management Plan as Appendix B of this Volume II of the study.

ES.10 Summary of Impacts & Mitigations

The proposed exploration and associated support operations have the potential of
noise and atmospheric emissions, as well as physical disturbance and a variety of
discharges and wastes. Those sources identified in this assessment are typical of
drilling activities in waters around the world. There are no unusual or unique
emissions, discharges or other potential sources of environmental impacts. A detailed
study of the potential impacts, sensitivity of receptors, mitigation measures and any
residual impact has been carried out and is included within the EIA report. An
overview of the main areas of impact, related operations and mitigation measures is
provided in Table ES 1.

The mitigation measures outlined in the EIA and the overall project plan are the result
of extensive industry experience with offshore exploration drilling, and are tried and
tested. Furthermore, the management systems required to implement such measures
are well understood and known to be effective. There is, therefore, a high level of
confidence that potential effects will be localized, of short term and reversible through
the successful implementation of the management and mitigation measures detailed
herein.

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