MPCL acquires working interest in Margala block

Company will collaborate with MOL Pakistan to jointly perform exploration activities

ISLAMABAD:

Mari Petroleum Company Limited (MPCL), one of Pakistan's largest exploration and production companies, has announced its farm-out agreement with MOL Pakistan Oil and Gas Co BV over Margala Block with an area of 1,847 sq km to collaborate their resources and efforts to jointly perform exploration activities.

While the assignment of working interest is subject to government approval, with this agreement, MPCL will become a significant working interest owner in the petroleum concession agreement of the block along with Pakistan Oilfields Ltd, and MOL Pakistan as the operator. The Margala Block is situated in the Potwar Basin in the vicinity of Islamabad.

This farm-in is part of MPCL's strategy to increase its exploration acreage, reserves replacement ratio and maximising shareholder's value while also meeting the country's increasing energy demand from indigenous resources and lowering the burden of imported fuels on national economy. Furthermore, MPCL shall expand its footprint in Potwar Basin, which also includes Ghauri Block located near Rawalpindi and Jhelum districts.

In July 2021, Mari Petroleum also responded to the Ministry of Energy's (Power Division) request for gas production to counter the major power crisis in Pakistan.

Published in The Express Tribune, July 20^th, 2021.

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