Mari Petroleum Company Limited

History

In 1957, when MPCL was operating as Esso Eastern Inc.,the Mari Gas Field was discovered in Daharki, Sindh, Pakistan, with an original gas in place (GIIP) estimate of 2.38 TCF. Over the years, with the phased development of the Field and subsequent reservoir evaluations, the GIIP of the Field was enhanced to 10.751TCF, thus making Mari one of the largest gas fields in Pakistan in terms of balance reserves.

In May 1983, the Fauji Foundation, a major Pakistani group, along with OGDCL (Oil and Gas Development Company, Ltd.) and the Government of Pakistan acquired the entire business operation of Esso Eastern Inc. in Pakistan, which included the Mari Gas Field.

During December 1984, the business was reorganized and incorporated as Mari Petroleum Company Limited, and it acquired the assets, liabilities and operational control of the Mari Gas Field. MPCL primarily operated as a production company until 1997, when it began the phased development of the Habib Rahi Reservoir to supply gas for new fertilizer plants. The company also simultaneously pursued appraisal activities within its Mari D&P Lease by drilling stepout wells to determine the boundaries of the Habib Rahi Reservoir.

The hallmark of MPCL’s growth and expansion is also represented by its entry into exploration activities in 2001.

Distinctions

The Company has the highest well success ratio of any E&P company in Pakistan (1:1.44, or 69.23%) compared to other companies (which average 1:3.3, or 30.1%), and is also the most cost-effective. The company’s operating expenses are 7-8% of its gross sales, while other companies average operating expenses which comprise 21% of their gross sales.

Exploration

MPCL started extensive geological and geophysical exploration in 2001, often in partnerships with local and international exploration and production companies to tap indigenous hydrocarbon resources of the country. MPCL’s success ratio in 2013-14 was 100 percent as MPCL drilled five oil/gas wells and all were successful which resulted in the significant increase in the company's oil/gas production. Last year MPCL share prices were trading at around Rs 400 per share, which has now crossed Rs. 900 per share.

MPCL's success ratio is 1:1.4, which is high compared to other E&P companies which average 1:4; internationally the ratio is 1:8. About 78% of MPCL's gas production is dedicated to fertiliser plants, and the company is playing a very critical role in the growth of the agriculture sector. Currently, MPCL is working in 17 oil/gas blocks, of which 11 blocks are entirely being explored by MPCL while in other 6 blocks MPCL is a joint partner.

MPCL Operated Blocks

MPCL Non-operated Blocks

Production

Following is the average daily production from various fields:

Reserves

The remaining recoverable reserves of MPCL operated blocks stood more than 4.26 Trillion Cubic Feet of gas as of February 29, 2012.

Research and development

MPCL is the first Oil & Gas Company in Pakistan which has dedicated substantial funds for a number of Research & Development activities in exploration, production, health, safety and environment (HSE). Following are the projects initially undertaken for Research & Development:

Listing

MPCL is listed in all three Pakistani Stock Exchanges, namely the Karachi Stock Exchange (KSE), the Lahore Stock Exchange (LSE) and the Islamabad Stock Exchange (ISE).

Launch of international operations

MPCL is preparing to launch collaborative operations with international oil and gas exploration companies, and has increased local gas production by 61 Million Cubic Feet per Day (mmcfd), taking it from 584 mmcfd in 2013 to 645 mmcfd in 2014. The company is also exploring opportunities to work with Central Asian countries in collaboration with the Hungarian oil/gas exploration/production company MOL Group, and with the Malaysian oil and gas company PETRONAS on a joint venture basis.