Mari Petroleum to invest $45m in new exploration blocks

Acquires one new block each in tribal areas and Sindh

KARACHI: Mari Petroleum Company Limited (MPCL), an oil and gas exploration firm, has acquired two new blocks in Sindh and tribal areas with combined minimum financial commitment of $45.17 million.

“The government of Pakistan had invited bids for 10 exploration blocks for the grant of exploration rights. The company submitted bids for two blocks, ie Wali West block, located mainly in tribal areas, and Taung block, located in Sindh, based on their potential with combined minimum financial commitment of $45.17 million,” the company said in a notification to the Pakistan Stock Exchange (PSX).

MPCL’s share price increased 2.16%, or Rs27.48, and closed at Rs1,301.75 with trading in 17,000 shares at the PSX on Wednesday.

“MPCL board of directors, in its meeting held today (Wednesday), has approved the acquisition of two new blocks, which have been provisionally awarded to the company, for being the highest bidder, in the latest bidding round arranged by the government,” it said.

MPCL will have 100% working interest as operator in the Wali West block and 60% interest in the Taung block.

“The acquisition is subject to execution of Petroleum Exploration Licences/Petroleum Concession and Joint Operating Agreements in respect of both the blocks and completion of related legal formalities,” it said.

“The acquisition of blocks was in accordance with the company’s exploration business plan aimed at adding new reserves to the company’s hydrocarbon reserve balance.”