Mari Petroleum acquires 30% working interests in Margala Block from MOL
The federal government has given go ahead to Mari Petroleum to acquired 30 percent working interests in Margala Block from MOL Pakistan.
Petroleum Division has recently informed the economic coordination committee (ECC) that the Directorate General, Petroleum Concessions had received request for assignment of 30% working interests in Margala Block from M/s MOL Pakistan to M/s Mari Petroleum Company Limited (MPCL).
The request for assignment and the draft Deed of Assignments (DOA) were well in line with the provisions of applicable rules.
Rule 8 of Pakistan Petroleum (E&P) Rules 2001 required prior approval of the Government for any such assignment.Mari Petroleum Drills First-Ever Horizontal Well in Mari Gas Field
It was stated that the acquiring company M/s MPCL was operating in Pakistan since 1954, and had market capitalization of PKR 230 billion. Further, the company had working interests in 23 exploration licenses and 15 development & production leases.
The Division further informed the forum that the performance guarantee would be acquired from the company once this assignment was approved and the acquiring company becomes the right holder in Margala exploration license.
It was added that M/s MOL had cleared all due financial obligations except indexed rental Rs.27 million, which was subjudice in Sindh High Court.
The Division stated that the request had been reviewed thoroughly, taking into consideration the technical and financial capabilities and incorporation details of the acquiring company, as well as the clearance of Government dues and other obligations by the assigning company.
The Division Informed that the draft DOA had been vetted by the Legal Section of DGPC.
Petroleum Division stated that the case for assignment of 30% working interests of M/s MOL to M/s MPCL in Margala Block, require approval of the Government.
Therefore, approval of the ECC was solicited for the above said assignment, based on the recommendations.
The Economic Coordination Committee (ECC) of the Cabinet considered the summary submitted by Petroleum Division regarding “Assignment of Working Interest in Exploration Licenses/Blocks” and approved the proposal.
