KARACHI: Directorate General of Petroleum Concessions (DGPC) has provisionally awarded four new exploration blocks to Mari Petroleum Company Limited (MPCL) in the latest block bidding round, the company announced.
Mari Petroleum Company Limited (MPCL) has been awarded two blocks as an operator and two as joint venture partner with other local companies.
The blocks have been awarded after competitive bidding, on the basis of work units committed by different E&P companies, in the Block Bidding Round 2020 arranged by the government.
According to details, MPCL will hold 39 percent working interest as operator with partners Pakistan Oilfields (POL) having 32 percent and Spud Energy having 29 percent stake in Nareli block in Baluchistan. Similarly, MPCL will hold 60 percent working interest as operator with Oil and Gas Development Company (OGDC) having 40 percent stake in Sharan block in Baluchistan.
OGDC will be operator of Killa Saifullah block in Baluchistan having 60 percent stake with MPCL as partner having 40 percent stake.
POL will be operator of North Dhurnal block in Punjab having 60 percent stake with MPCL as partner having 40 percent stake.
Formal award of the blocks is subject to approval of the acquisition by MPCL Board of Directors; execution of petroleum exploration licenses and petroleum concession agreements with the government; execution of joint operating agreements among the respective partners and completion of formalities.
“The likely acquisition of aforesaid blocks is in accordance with the Company’s Exploration Business Plan aiming to expand exploration acreage to add new reserves to the Company’s hydrocarbon reserve balance,” MPCL said.
Director General Petroleum Concession (DGPC) had invited bids for 20 exploration blocks across the country in a bid to attract investment in the energy sector and boost exploration activities to enhance oil and gas production.
Earlier, in its first round DGPC had sought bids for award of 10 exploration blocks to the exploration companies. But the exploration and production companies did not give encouraging response.