Pakistan's Mari Energies to explore 10 new blocks in bid to boost gas output

Pakistan's biggest gas producer — Mari Energies — has received permission from the government to explore 10 blocks in a bid to increase gas output which has been marred because of depleting reserves in the country.

Pakistan government has awarded provisional 10 new exploration blocks to Mari Energies of which seven blocks are awarded as an operator and three blocks as a joint venture partner; one each with Oil and Gas Development Company Limited (OGDCL), Pakistan Petroleum Limited (PPL) and Prime Global Energies Limited (Prime) as operators in respective blocks, according to the letter filed by the company to Pakistan Stock Exchange on Wednesday.

The Government Holdings Pvt Ltd (GHPL) and Turkish Petroleum Overseas Company (TPOC) are also JV partners in these blocks, the letter said.

These blocks have been awarded after competitive bidding on the basis of work units committed by various exploration companies in the Pakistan E&P Onshore Bid Round 2025 conducted by the Directorate General Petroleum Concession, a government authority which looks after exploration license and auction process, the letter said.

Pakistan is currently producing around 2.809 billion cubic feet (bcf) of gas where Mari Energies' output has been around 0.858 bcf, Oil and Gas Development Company nearly 0.816 bcf, Pakistan Petroleum Ltd around 0.495 bcf and Pakistan Oil Fields 0.045 bcf, according to the government data.

The gas reserves are depleting fast which forced the country to increase reliance on imported gas. The country is currently importing around 1.5 bcf through two terminals — Elengy Terminal Pakistan Ltd., having capacity of 690 mmcf/day and Pakistan Gas Port Ltd, having capacity of 750 mmcf/day.

Out of 10 blocks, eight are situated in the Balochistan province, bordering Iran, while one each has been located in Punjab and Sindh province, the company statement said.

Mari Energies holds 100% right in five blocks, while it has partners in the remaining blocks, including Oil and Gas Development Company, Pakistan Petroleum Ltd, Government of Pakistan Holdings. Meanwhile in two blocks, Turkish Petroleum Overseas Company has share of up to 15%, the letter said.

In a separate filing, the Oil and Gas Development Compnay revealed that besides its partnership with Pakistan Petroleum Ltd and Mari Energies, it got permission through competitive bidding to explore two more blocks.

These are in Kalat North in Balochistan where OGDC would be 100% operator and Naing Sharif located in Sindh where OGDC would be 70% partner and Prime Global Energies would have 30% share.