The Board of Directors (BoD) of Mari Petroleum Company Limited (MPCL) has given its approval for the acquisition of two new exploration blocks, as announced in a statement issued by the company on Wednesday.
These blocks were provisionally awarded to MPCL as the highest bidder in the recent government-organized bidding round.
The government had invited bids for 10 exploration blocks to grant exploration rights, and MPCL submitted bids for two of them. The Wali West Block, primarily located in Tribal Areas, and the Taung Block situated in Sindh, were selected by MPCL based on their potential and prospectivity. The combined minimum financial commitment for these blocks amounts to $45.17 million.
In terms of working interest, MPCL secured a 100 percent interest share in the Wali West Block. For the Taung Block, MPCL will operate with a 60 percent share, and Pakistan Oil Fields will hold the remaining 40 percent interest share. The company’s decision to participate in the bidding process aligns with its exploration business plan, which aims to augment its hydrocarbon reserves balance by adding new reserves.
While the acquisition has received approval from the BoD, it is contingent upon the execution of Petroleum Exploration Licenses/Petroleum Concession & Joint Operating Agreements for both blocks, as well as the completion of related legal formalities.
The move signifies MPCL’s strategic focus on expanding its exploration and production activities, contributing to the development of Pakistan’s energy sector. Exploration blocks are crucial assets for energy companies, as they provide opportunities to discover and develop new hydrocarbon reserves.
The Wali West Block, situated in Tribal Areas, and the Taung Block, located in Sindh, present promising prospects for oil and gas exploration. The commitment of $45.17 million underscores MPCL’s dedication to investing in new exploration ventures and tapping into the potential of these blocks.
MPCL’s proactive approach to securing exploration blocks aligns with the broader objectives of the energy sector in Pakistan. Increasing domestic energy production is a priority for the country, and the acquisition of these blocks contributes to the overall goal of achieving energy security.
As the acquisition progresses, MPCL will be working closely with relevant authorities to finalize legal formalities and agreements. The successful execution of this strategic move will not only bolster MPCL’s position in the energy sector but also contribute to the sustainable development of Pakistan’s natural resources. The acquisition of these exploration blocks is anticipated to bring positive economic and energy-related outcomes, further supporting the country’s quest for energy self-sufficiency.
