Mari Petroleum Farms in to the Margala Block in Pakistan
Islamabad-based Mari Petroleum Company Ltd. has entered into a farm-in agreement with MOL Pakistan Oil & Gas Company BV, a wholly-owned subsidiary of Hungary-based integrated energy company MOL Group, to acquire a significant working interest in the Margala block located in the Potwar basin in Pakistan. The terms of the transaction have not been disclosed. Upon completion, MOL Pakistan will retain operatorship, with Mari Petroleum holding a significant working interest, and Pakistan Oilfields Ltd. a 30% stake.
The Margala block covers an area of approximately 1,847 sq. km in the Potwar basin located across the Rawalpindi district of the Khyber Pakhtunkhwa Province and Islamabad Capital Territory. The license was awarded in November 2006 and includes the Ken prospect. The current work commitments on the block include a drill-or-drop (DoD) decision on a planned exploration well, Ken-1.
“This farm-in is part of MPCL’s aggressive strategy not only to increase its exploration acreage, reserves replacement ratio and maximising shareholder’s value but to also meet country’s increasing energy demand from indigenous resources and lowering the burden of imported fuels on national economy. Furthermore, MPCL shall be expanding its footprint in Potwar Basin which also includes Ghauri Block located near Rawalpindi and Jehlum districts,” the company said in a press statement.
Listed on the Karachi Stock Exchange (KSE), Mari Petroleum is the second-largest gas producer in Pakistan, and operates the Mari field, the country’s largest gas field.
Tri-listed on the Budapest Stock Exchange (BET), Warsaw Stock Exchange (WSE), and Luxembourg Stock Exchange (LuxSE), MOL Group is engaged in exploration & production, refining & marketing, petrochemicals, and gas transmission operations across several countries in central and eastern Europe, as well as in Russia/CIS, the Middle East, and Africa.
The completion of the transaction is subject to customary closing conditions, including government approval.