February 20, 2019 (MLN): Mari Petroleum Company Limited (MARI) has decided to acquire two new exploration blocks which have been provisionally awarded to the company for being the highest bidder in the latest bidding round arranged by the government,
The government of Pakistan had invited bids for 10 exploration blocks for grant of exploration rights. The company submitted bids for two blocks i.e. Wali West Block located mainly in tribal areas and Taung Block located in Sindh.
The bids were submitted based on their potential with a combined minimum financial commitment of $45.17 million and working interests as follows:
- Wali West Block: MPCL as operator with 100% interest share
- Taung Block: MPCL as operator with 60% interest share and Pakistan Oilfield with 40% interest share.
The acquisition is subject to execution of Petroleum Exploration Licenses/Petroleum Concession & Joint Operating Agreements in respect of both the blocks and completion of related legal formalities.
The aforesaid acquisition of blocks was in accordance with the company’s Exploration Business Plan aiming to add new reserves to the company’s hydrocarbon reserve balance.
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