The Directorate General of Petroleum Concessions (DGPC) has provisionally awarded four new exploration blocks to the Mari Petroleum Company Limited (MPCL).
The DGPC took this decision in the latest block bidding round after competitive bidding based on work units had been submitted by different exploration and production (E&P) companies.
The company announced on Wednesday that two of these blocks have been awarded to the company as the operator, while the other two have been awarded as a joint venture partner with other local companies.
The MPCL will hold 39 percent working interest as the operator, and the partner companies – Pakistan Oilfields Limited (POL) and Spud Energy – will have 32 percent and 29 percent stakes respectively in Nareli Block in Balochistan.
The MPCL will have 60 percent working interest as the operator in Sharan Block, Balochistan, and the Oil and Gas Development Company Limited (OGDCL) will have the remaining 40 percent stake.
The OGDCL will be the operator of Killa Saifullah Block, Balochistan with a 60 percent stake, and the MPCL at a 40 percent stake. POL will be the operator of the North Dhurnal Block in Punjab with a 60 percent stake, and the MPCL as the partner with a 40 percent stake.
According to the announcement by the company, the formal awarding of the blocks is subject to the approval of the acquisition by the MPCL Board of Directors, the execution of petroleum exploration licenses and petroleum concession agreements with the government, the execution of joint operating agreements among the respective partners, and the completion of formalities.
The MPCL added that the likely acquisition of the aforementioned blocks is in accordance with the company’s exploration business plan, and is aimed at expanding exploration acreage to add new reserves to the company’s hydrocarbon reserve balance.