Mari Energies commences production from Waziristan block

Mari Energies, the operator of the Waziristan block, has announced the start of gas and condensate production from the Shewa discovery in Khyber Pakhtunkhwa Province.

The company described the development as a major milestone in enhancing Pakistan's energy security and contributing to the socio-economic progress of the region, according to a stock filing on Tuesday.

The production is currently in the extended well testing (EWT) phase, following the completion of the gas transmission pipeline by Sui Northern Gas Pipelines Ltd. (SNGPL). Average production rates are 26 million standard cubic feet per day (MMSCFD) of gas and 244 barrels per day (BPD) of condensate.

Mari Energies stated that production would gradually increase to full capacity as the gas processing plant and export systems stabilize.

The company holds a 55% working interest in the Waziristan block, while joint venture partners Oil and Gas Development Co. Ltd. and Orient Petroleum Inc. own 35% and 10%, respectively.

This achievement is expected to positively impact the local economy and strengthen Pakistan's energy infrastructure, ensuring a sustainable energy future for the nation.

In February, Mari Energies discovered hydrocarbon reserves at the Spinwam-1 exploration well in Khyber Pakhtunkhwa.

As per its latest financial results, the company reported a profit after tax (PAT) of PKR 11.17 billion in the second quarter of fiscal year 2025 (2QFY25), a decline of over 39% year-over-year compared to PKR 18.36 billion in the same period last year.

According to an analyst at Optimus Securities, Pakistan's local gas production has fallen from a high of 4,420 mmcfd in Mar-2012 to 2,958 mmcfd. Similarly, oil production has declined from 99,019 barrels per day in Nov-2014 to 63,797 barrels per day now.

Depleting hydrocarbon reserves amidst no major discoveries and poor drilling in last few years, circular debt, security issues in up country, and excess RLNG supply in the system are the key reasons behind falling local oil and gas production in Pakistan.

The government could have saved $7-8 billion of foreign currency annually if production had at least been maintained at peak levels, if not increased.