The Mari Gas Field, originally owned by the Pakistan Stanvac Petroleum Project (a joint venture formed in 1954 between the Government of Pakistan and M/s Esso Eastern Incorporated U.S.A), made its first gas discovery in the lower Kirthar Limestone Formation in 1957. The field came on stream in 1967. M/s Esso Eastern sold its entire shareholding to the Fauji Foundation, Government of Pakistan (GoP), and Oil and Gas Development Company Limited (OGDCL) in 1983. The company continued as a wholly-owned Public Limited Organization. The company has grown from the sale of natural gas from an inherited field to become one of the leading integrated E & P companies in the country. A look at MPCL’s journey through time with key data is provided below:
Mari Field Discovered
In 1957, ESSO Eastern discovered the Mari Field. The initial reserves were estimated at 2.38 TCF and later enhanced to 10.751 TCF.
Production of Natural Gas Commenced
The first gas discovery from the Mari field led to the production of natural gas, which commenced in 1967.
Acquisition of Mari Gas Field
In 1983, the Fauji Foundation, OGDCL, and GoP acquired Esso’s entire operations, including Mari Gas Field.
Mari Gas Company Limited (MGCL) was incorporated
In 1984, Mari Gas Company Limited (MGCL) was incorporated with Fauji Foundation, the Government of Pakistan, and OGDCL as its shareholders, having 40%, 40%, and 20% shareholdings respectively. The Company took over the assets, liabilities, and operational control of Mari Gas Field and commenced business in its name in 1985 under the Mari Gas Wellhead Price Agreement (Mari GPA).
Listing on all Stock Exchanges of Pakistan
In 1994, the government divested 50% of its shares and the company became listed on all the stock exchanges in Pakistan.
Entry into Oil and Gas Exploration
In 2001, the company achieved a new milestone when it was granted a license for exploration of oil and gas in addition to its existing production activities.
MGCL renamed as Mari Petroleum Company Limited
The company was renamed from "Mari Gas Company Limited" to "Mari Petroleum Company Limited" (MPCL) in November 2012 to carry out its diversified business operations and expanded activities across various sectors of upstream exploration and production.
Set-up of the Services Division (MSD)
In 2013, MPCL became a fully integrated E&P company in the country by setting up a services division comprising a 2D/3D seismic acquisition unit, a 2D/3D seismic data processing center, and a fleet of three onshore drilling rigs.
Mari GPA dismantled and replaced with a market-oriented formula
In 2014, the Economic Coordination Committee of the Cabinet approved the dismantling of the Mari GPA by replacing it with an international market-oriented crude oil pricing formula. The dismantling of the Mari GPA has allowed the company to operate on commercial terms to undertake oil and gas exploration activities to tap its full potential in comparison with its peers.
Conversion of Mari Field to 2012 Petroleum Policy
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 incremental production initiatives.
Start of Incremental Production from Mari Field
In February 2016, MPCL became the first Pakistani E&P Company to implement its incremental gas production project (at Mari Field) and availed the gas price incentive on incremental field production, offered under the 2012 Petroleum Policy.
Golden Jubilee of uninterrupted gas supply from Mari Field
Mari Field marked its Golden Jubilee on December 22, 2017. This was 50 years of meticulous operations and true professionalism, as evident by the uninterrupted supply of hydrocarbons to the company’s fertilizer and power customers.
Renewal of Mari D&P Lease
The government approved an extension of 5 years in the Mari lease period with effect from November 2019, extending the company’s development and production rights in the lease area till 2024.
Removal of Cap on Dividend Distribution by the Government of Pakistan
In February 2021, the Economic Coordination Committee of the Cabinet approved the removal of the cap on dividend distribution by MPCL, enabling the company to decide the dividend payout following the applicable laws based on its financial performance and internal funding requirements.
Award of Offshore Block 5 in Abu Dhabi
Mari Petroleum, along with a consortium of Pakistani companies, Oil and Gas Development Company Limited (OGDCL) and Government Holdings (Private) Limited (GHPL), led by Pakistan Petroleum Limited (PPL), was awarded Offshore Block 5 in Abu Dhabi. MPCL’s participation in Offshore Block 5 is in line with the Company’s vision of becoming a true international integrated energy company.