History of the Company
Mari Gas Field was originally owned by Pak Stanvac Petroleum Project, a Joint Venture formed in 1954, between Government of Pakistan and Esso Eastern Incorporated, having 49% and 51% ownership interest, respectively. The first gas discovery was made by the Joint Venture in 1957 when the first well in lower Kirthar ‘Zone-B’ Limestone Formation was drilled. Production from the field started in 1967. In 1983, Esso Eastern sold its entire share to the Fauji Foundation. Consequently, it was decided to set up a wholly owned public limited company for the purpose of acquiring the assets and liabilities of the Project.
In 1984, Mari Gas Company Limited (MGCL) was incorporated with Fauji Foundation, Government of Pakistan and OGDCL, as its shareholders having 40%, 40% and 20% shareholding, respectively. The Company took over the assets, liabilities and operational control of Mari Gas Field and commenced business in its own name in 1985, operating under Mari Gas Wellhead Price Agreement (Mari GPA).
In 1994, the Government divested 50% of its shares and the Company became listed on all the stock exchanges of Pakistan.
The Company operated only as a gas production company and was engaged in developing the already discovered Habib Rahi Reservoir in Mari Gas Field for supply of gas to new fertilizer plants. The Company pursued appraisal activities within its Mari D&P Lease area by drilling step-out wells to determine the extent of Habib Rahi Reservoir.
In 2001, the Company achieved a new milestone when it was granted a license for exploration of oil and gas, in addition to the production activities. Since then, MPCL has emerged as a successful E&P Company with a proven track record in the field of exploration and production.
It has grown from the sale of natural gas from an inherited field, to the exploration, production and sale of gas, oil and other petroleum products from a number of fields in all the provinces of Pakistan. The name of the Company was changed from “Mari Gas Company Limited” to “Mari Petroleum Company Limited” (MPCL) in November 2012, to reflect its diversified business operations and expanded activities.
The Company had been outsourcing seismic and drilling business like other E&P companies. However, in 2013 the Company decided to set-up a services division comprising of a 3D seismic data acquisition unit, a 2D/3D seismic data processing centre and a fleet of three on-shore drilling rigs. Thus, MPCL became a fully integrated E&P company in the Country.
In 2014, an extension of five years in Mari lease period was approved extending the development and production rights in the Lease Area till 2019. The extension has enabled MPCL to enhance the recovery and produce more natural gas, which is critically needed in the Country.
Since its inception, the Company had been operating on a cost-plus fixed return formula under Mari GPA 1985. Pursuant to consistent efforts by MPCL Management, a major milestone was achieved in November 2014, when Economic Coordination Committee of the Cabinet approved dismantling of Mari GPA and its replacement with an international crude oil price-linked market oriented formula. Dismantling of Mari GPA has allowed the Company to operate on commercial terms and become competitive to realise its full potential.
In October 2015, the Company opted for conversion of Mari D&P lease to 2012 Petroleum Policy, to avail the price incentives offered by the Government on production enhancement initiatives.
In February 2016, MPCL became the first Pakistani E&P company, to implement its incremental gas production project (at Mari Field) and avail gas price incentive on incremental field production offered in 2012 Petroleum Policy.