Mari Energies eyes mining, offshore drilling and AI as next growth drivers

Mari Energies Limited reported a 7.2% year-on-year increase in net profit for the first nine months of fiscal year 2025-26 and outlined an ambitious growth strategy spanning natural gas exploration, offshore drilling, mining, data centers and emissions reduction projects during its corporate briefing.

The company posted profit after tax of PKR 49.6 billion, translating into earnings per share of PKR 41.32, compared with PKR 46.3 billion, or PKR 38.56 per share, in the corresponding period last year.

Fertilizer sector gas supply

Management highlighted the company's strategic role in Pakistan's energy and food security, noting that more than 90% of domestic urea production currently depends on gas supplied from the Mari Field.

Following development of the Ghazij field, Mari Energies expects to become the country's sole gas supplier to the fertilizer sector.

The company said Ghazij remains one of its most significant long-term projects, with gas allocated to FFC Port Qasim, Fatima Fertilizer and Agritech. Production is expected to increase from about 75 million cubic feet per day (MMscfd) to around 222 MMscfd.

Management said commercialization of the field is awaiting final regulatory approvals for negotiated gas supply agreements. The planned 18-24 month development schedule will begin after those agreements are executed, while gas transportation and processing infrastructure beyond the field boundary will be financed and developed by fertilizer customers.

Exploration and production

Mari Energies said it has expanded its portfolio to 72 exploration licenses and blocks and 15 development and production leases across Pakistan and Abu Dhabi, reflecting its diversification into upstream exploration, mining and technology businesses.

The company said appraisal and exploratory drilling is underway in Ghauri, Waziristan and Shah Bandar, alongside multiple seismic, gravity and magnetic surveys across several blocks. Preparatory civil works are also progressing ahead of future drilling campaigns.

Development work continues at producing assets, including Sujawal, Shah Bandar and Ratana, where additional infrastructure, processing facilities and new development wells are expected to support future production growth.

Offshore expansion

Management identified offshore exploration as a key long-term growth driver following the acquisition of additional offshore acreage.

The company plans seismic acquisition campaigns in Pakistan's Eastern Offshore and the Makran Basin and is preparing to drill its first offshore exploration well within the next few years.

New discoveries

Mari Energies highlighted the rapid commercialization of its Shams-1 discovery, where gas production began just three months after the discovery.

Following government approval, early production testing is supplying up to 30 MMscfd while reservoir performance continues to be evaluated.

The company also said Spinwam-1 has been brought into production in the Waziristan Block, increasing field output to around 100 MMscfd, with further growth expected after completion of the full development program.

Management attributed temporary production fluctuations to sabotage of transmission pipelines rather than reservoir performance, adding that production resumes after repairs, although security conditions continue to influence development timelines.

Mining and technology investments

Mari Energies said mining represents a long-term strategic growth area, with multiple exploration licenses, partnerships and project companies already established.

The company is constructing an MSA Labs facility in Islamabad that will allow geological testing to be conducted domestically instead of relying on overseas laboratories.

In the technology segment, management said Sky47 completed its Tier III data center in Islamabad within 12 months, significantly ahead of global industry benchmarks. Artificial intelligence and cloud services have already been launched commercially, with initial customers onboard.

Development of a Karachi data center has entered the preliminary construction phase as the company seeks to support Pakistan's growing demand for sovereign data hosting through localized Tier III and Tier IV infrastructure.

Emissions reduction project

Mari Energies said GHG Emissions Mitigation Limited (GEM) has substantially completed its financing arrangements, while procurement of major equipment is underway.

Commercial operations are expected to begin during fiscal year 2026-27, with the project focused on monetizing methane and carbon dioxide emissions.

Outlook

Looking ahead, management said its near- to medium-term priorities include increasing production from the Ghazij, Shewa, Shams, Soho and Pateji discoveries, completing ongoing drilling programs, launching offshore exploration in Pakistan, supporting development of Abu Dhabi Block 5, expanding mining operations, operationalizing additional data centers and commissioning the GEM project.