Mari Petroleum approves acquisition of two new oil exploration blocks

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LAHORE: Mari Petroleum Company Limited (MPCL) Board of Directors, in a meeting held here on Wednesday, has approved the acquisition of two new blocks which have been provisionally awarded to the company on the account of being the highest bidder, in the latest bidding round arranged by the government of Pakistan.

In a notice issued by MPCL to the Pakistan Stock Exchange (PSX), MPCL informed that “In compliance with Section 96 of the Securities Act, 2015 and clause 5.6.1(a) of PSX Rule Book, we are enclosing herewith a form disclosing material/price sensitive information regarding Board’s approval of acquisition of two new exploration blocks in the latest block bidding round arranged by the Government.”

Earlier, the government of Pakistan had invited bids for the exploration rights to 10 exploration blocks. MPCL submitted bids for Wali West Block located mainly in Tribal Areas and Taung Block located in Sindh, based on their potential and prospectivity, with a combined minimum financial commitment of $45.17 million, with a 100 per cent interest share as operator for MPCL in Wali West Block and MPCL as operator with 60 per cent interest share and Pakistan Oil Fields with 40 per cent interest share in Taung Block.

The acquisition is subject to execution of Petroleum Exploration Licenses and Petroleum Concession and Joint Operating Agreements in respect of both the blocks and completion of related legal formalities. The aforesaid acquisition of blocks was in accordance with MPCL’s Exploration Business Plan aiming to add new reserves to the company’s hydrocarbon reserve balance.

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