KARACHI: The Mari Petroleum Company Limited (MPCL) has executed a farm-out agreement with MOL Pakistan Oil and Gas Co BV over the Margala Block with an area of 1,847sqkm to collaborate their resources and efforts to jointly perform exploration activities, a statement said on Monday.

The block is situated in the Potwar Basin in the vicinity of Islamabad, it added.

Mari Petroleum is a leading private sector Pakistani E&P company, while MOL Pakistan Oil and Gas Co BV is a fully-owned subsidiary of a Hungarian multinational oil and gas company headquartered in Budapest, MOL Group.

Mari Petroleum became a significant working interest owner in the petroleum concession agreement of the block along with the Pakistan Oilfields Limited, and MOL Pakistan as the operator. The assignment of the working interest would be subject to the government approval.

This farm-in is part of the MPCL’s aggressive strategy not only to increase its exploration acreage, reserves replacement ratio and maximising shareholder’s value but to also meet the country’s increasing energy demand from indigenous resources and lowering the burden of imported fuels on the national economy, the statement said.

Further, the Mari Petroleum Company Limited would be expanding its footprint in the Potwar Basin, which also includes Ghauri Block located near Rawalpindi and Jhelum districts, it added.

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