KARACHI: The Board of Directors (BoD) of Mari Petroleum Company Limited (MPCL) on Wednesday approved acquisition of two new exploration blocks.
A statement issued by the company said that MPCL BoD approved acquisition of two new blocks which had been provisionally awarded to the company, for being the highest bidder, in the latest bidding round arranged by the government.
The government had invited bids for 10 exploration blocks for grant of exploration rights. The company submitted bids for two blocks i.e. Wali West Block located mainly in Tribal Areas and Taung Block located in Sindh, based on their potential / prospectivity, with a combined minimum financial commitment of $45.17 million and working interest as: 100 percent interest share in Wali West Block; and MPCL as operator with 60 percent share and Pakistan Oil Fields with 40 percent interest share in Taung Block.
The company said that the acquisition is subject to execution of Petroleum Exploration Licenses/Petroleum Concession & Join Operating Agreement in respect of both the blocks and completion of related legal formalities.
The acquisition of blocks was in accordance with the company’s exploration business plan aiming to add new reserves to the company’s hydrocarbon reserves balance.