History of the Company
Mari Gas Field was originally owned by Pakistan Stanvac Petroleum Project, a joint venture formed in 1954 between Government of Pakistan and M/s 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, M/s Esso Eastern transferred its entire share to Fauji Foundation, which set up a 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. Upon formation, the Company took over the assets, liabilities and operational control of Mari Gas Field. In 1985, the Company commenced business in its own name and was given gas price through Mari Gas Wellhead Price Agreement (Mari GPA).
In 1994, the Government divested 50% of its 40% shares and the Company became listed on all the stock exchanges of Pakistan.
The Company primarily operated as a production company, developing in phases the already discovered Habib Rahi Reservoir in Mari Gas Field for supply of gas to new fertilizer plants. Simultaneously, the Company also 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 expanded its operations and entered into exploration business. The Company is now a major player in the Country’s oil and gas exploration and production sector operating eleven exploration and production assets (two D&P leases and nine operated blocks) and has partnership with leading national and international E&P companies in six non-operated blocks.
The Company also owns and operates a 3D seismic data acquisition unit, a 2D/3D seismic data processing centre, three land drilling rigs and a slick line unit. With expansion into exploration activities and addition of E&P allied services, MPCL has become a fully integrated E&P company in Pakistan, having oil and gas fields in all the provinces.
To reflect its diversified business operations and expanded activities, the name of the Company was changed from “Mari Gas Company Limited” to “Mari Petroleum Company Limited” (MPCL) in November 2012.
A major development during 2014 was approval of five year extension in Mari lease period. This means that MPCL would enjoy the development and production rights in the Lease Area till 2019. The extension will enable 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 would allow the Company to operate on commercial terms and become competitive; thereby realizing 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 production project (Mari Field) and avail gas price incentive on incremental field production offered in 2012 Petroleum Policy.