In fact, the LLIs procurement process is always initiated after all geological / technical data for drilling any well is complete, shared, approved by all the JV partners.

In view of unconformitiesnon-conformities and geo-mechanics study outcomes, Operatorthe operator has revised the well design which resultanthas resulted in the big bore/odd size casing design beenbeing selected, and aiming to drill the reservoir section in 8⅜” hole section with a contingency of 6” hole section, keep. This is keeping in view the pore pressure uncertainty and ±3119m of Undifferentiated Kurram Group formation (has not been drilled in any offset well, or any other well in Pakistan) the revised well design is agreed with the revised LLIs.

The cost of LLIs being finalized according to the revised well design will be shared as JVP. As per the revised well design, half of the conventional LLIs (±1.4MM$) from already procured DHD LLIs (2.49 MM$) and additional LLIs (excluding tubing & completion) of ±4.0 MM$ will be used and procured respectively, which resultingresults in buildup of ±1.09 MM$ leftover/un-wanted inventory. Regarding the leftover inventory, the Operatoroperator has conveyed their stance that the inactive inventory will be used at any other MPCL Operatedoperated block, and Joint Venture Partners will be accommodated as per the PCA.
We certainly agreed that the increased cash outlay is because of the very epitome of lack of planning and lack of foresight of the Operatoroperator and JVPs should not be charged for the leftover inventory.