Mari Energies says Petrosin gas deal was terminated over invalid licence

Mari Energies Limited has rejected allegations that it wrongfully terminated its Gas Sale and Purchase Agreement with Petrosin CNG (Pvt) Limited, saying the buyer did not hold the valid licence required under the contract.

In a clarification submitted to the Pakistan Stock Exchange on July 21, Mari Energies referred to media reports concerning the termination of the agreement and the resulting International Chamber of Commerce (ICC) arbitration proceedings.

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The company said the agreement required Petrosin CNG to maintain a valid licence and that no such licence was in place when the contract was terminated.

Mari Energies said its position had consistently been upheld by Pakistani courts and that no adverse order against the company was currently in effect.

It added that the company’s stance in the related court proceedings was already part of the public record.

Mari Energies said the pending arbitration proceedings were confidential and expressed confidence that its position would be vindicated.

Last week, The News reported that Petrosin CNG has taken Mari Energies to international arbitration, seeking $19.1 million over a dispute involving gas supplies from the Halini Production Field.

The case has been filed before the International Chamber of Commerce and will be heard in London under the arbitration provisions of the Gas Sale and Purchase Agreement.

Petrosin claims Mari Energies terminated the contract before it was entitled to do so. It maintains that the agreement was meant to continue for as long as gas remained available from the field, provided the buyer complied with its contractual obligations.

Petrosin sought compensation for alleged business losses, arbitration costs and other relief.

However, Mari Energies disputes the claim and maintains that the termination was carried out under the agreement because Petrosin did not hold a valid licence at the relevant time.