The Economic Coordination Committee (ECC) of the Cabinet has approved transfer of 30% working interest of M/s MOL to Mari Petroleum Company Limited (M/s MPCL) in Margalla Block.
MOL Pakistan is a fully owned subsidiary of MOL group that hails from Budapest, Hungary and has been operating in the country since 1999. Its main line of work is crude oil exploration, mining and production. The company claims to have carried out seismic studies on two areas of Pakistan, namely TAL block in Kohat and Margalla block for the development of oil wells.
Earlier this year, MOL was awarded a licence extension application for the Margalla Block. Margala Block is governed by Pakistan Petroleum Exploration and Production Rules 2001. The rules of Pakistan Petroleum (E&P) Rules 2001 require the prior approval of the government for any such assignment to a company “A petroleum right or any working interest therein shall not be assigned without the previous consent in writing of the government.”
The Federal Minister for Finance and Revenue, Senator Mohammad Ishaq Dar presided over the meeting of the ECC of the Cabinet, today.
Sources said that the Directorate General Petroleum Concession requested for the assignment of 30 percent working interests in Margalla Block from MOL, to Pakistan Mari Petroleum Company Limbed (MPCL), at the ECC meeting.
The request for assignment and the draft Deed of Assignment (DoA) are well in line with the provisions of applicable rules.
MPCL has market capitalization of Rs 250 billion and is currently 852 BOPD oil and 761 MMCFD gas. It is one of the many companies in the portfolio of Fauji Foundation Pakistan.
The performance guarantee will be acquired from MPCL, once this assignment is approved and the acquiring company becomes the right holder in margalla exploration licence. M/s MOL has cleared all due financial obligations except indexed rental Rs27 billion which is subjudice at Sindh High court.
The ECC also considered a summary of Ministry of Maritime Affairs and approved Technical Supplementary Grant in aid of Rs. 822.750 million enabling Gwadar Port Authority (GPA) to disburse the amount of Rs. 250,000/- per head to 3291 fishermen registered with Balochistan Fisheries Department for the purchase of boat engines.
The ECC approved Technical Supplementary Grant in aid of Rs. 200 million in favour of the Ministry of National Health Services, Regulation and Coordination for Ghurki Trust teaching Hospital (GTTH), Lahore. Ghurki Trust teaching Hospital (GTTH) is a tertiary care non-profit organisation providing “State of the Art” health facilities to the needy & poor patients.
The ECC deferred a summary submitted by the Ministry of Energy (Petroleum Division) for foreign exchange coverage to PSO and directed the Ministry of Energy to resubmit the summary after reviewing the numbers.
