Mari Defends Gas Sale Bidding Process as Licence Dispute Deepens

Mari Energies has reaffirmed its position that companies do not need an Oil and Gas Regulatory Authority license to participate in bidding for natural gas from the Spinwam discovery, despite growing opposition from licensed gas marketers.

Mari Energy officials continue to maintain that the company has the right to sell natural gas to private parties that do not currently hold a valid OGRA licence for the sale and distribution of natural gas, and that if the Petroleum Division has any objection, it should write to the company.

The company reiterated its stance during a consultative session held on June 17 for potential bidders interested in the 17.5 million cubic feet per day gas discovery in the Waziristan Block. Hassan Mehmood, Director Commercial at Mari Energies, responded to questions raised by participants regarding the bidding process.

Stakeholders holding OGRA gas marketing licenses argued that the framework conflicts with a decision of the Council of Common Interests, which they say requires a valid OGRA license for private sector gas sales. They contend that licensing should be a prerequisite for bidding as it demonstrates technical capability, financial strength, regulatory compliance, and consumer protection standards.

Mari Energies, which extended the bidding deadline from June 15 to July 7 following criticism and reported objections raised with the prime minister, has maintained that it cannot impose an OGRA license requirement before bidding. The company said it had consulted legal advisers extensively, communicated its position to OGRA, and believes changing the criteria now could expose it to litigation.

Industry representatives have urged OGRA, the Directorate General of Petroleum Concessions, and the federal government to review the process and align it with the intent of the CCI decision. They insist they are not opposing competition but seeking a transparent process in which all bidders are subject to the same requirements.

Mari has also assured potential participants that it will help the successful bidder obtain an OGRA license after the award and will assume the commercial risk if licensing delays affect gas commercialization. The company said the Rs. 1 billion bid security will not be forfeited if the winning bidder fails to begin gas offtake within 90 days, provided sufficient progress has been made toward meeting the required conditions.

Industry sources have warned that legal challenges cannot be ruled out if the bidding process continues under the existing framework.