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Mari hydrocarbon sales of 29.93 MMBOE up 13% YoY in 9MFY24.

Mari Petroleum Company (MARI) held its corporate briefing today to discuss its 9MFY24 results and future outlook.

§ MARI achieved the highest-ever hydrocarbon sales of 29.93 MMBOE, up 13% YoY in 9MFY24.

§ MARI acquired 16 new exploration blocks in the last three years, including ADNOC offshore Block 5.

§  Testing of Shawal-1 is in progress, with initial tests showing an encouraging flow potential of 1,040 bpd of liquid and 2.54 MMSCFD of gas.

§  Ghazij-5 well was spud on Feb 15, and drilled down to TD depth of 1,483 mMD. Post-acid gas flow rate from the well was 10.5 MMSCFD.

§  The MARI D&P Lease was granted to MARI effective from Nov 11, 1994, for a maximum period of 30 years, ending on Nov 10, 2024. However, as per the Petroleum Policy 2012, the government has approved a 5-year renewal until November 10, 2029, subject to the payment of an additional 15% royalty. To highlight, this additional 15% royalty will be applicable to the entire MARI field and will be payable from Nov 2024.

§  Mari Ghazij 1,2,4 and 5 have been drilled and completed successfully and Ghazij-3 testing under way. Total Production potential from 4 wells reached to ~25 MMSCFD.

§  Regarding Waziristan Block (Shewa) management highlighted that expected commissioning is subject to pipeline completion. Laying of approximately 2km segment is pending due to security reasons. The gas from this field has already been allocated to SNGP. Two wells drilled with expected production of 70 MMSCFD.

§  Concerns over the security environment in Waziristan, KPK, and Baluchistan persist. The company is actively collaborating with different stakeholders to ensure a safe and secure working environment.

§  Regarding Offshore Block – 5, management highlighted that the drilling of the first appraisal well is in progress.

§  MARI management is in serious discussions with SNGP to resolve pending past receivables. However, management believes the recent hike in gas prices will improve the recovery.

§  Regarding the announcement by the caretaker government that E&P companies can allocate 35% of gas from new fields to be directly diverted to third parties, management stated that the Petroleum Division is currently developing the framework, which will be approved by the current government.

§  Currently, the Industry is facing gas curtailment from Sui companies amid capacity constraints due to the availability of a higher quantity of LPG in the system.

Courtesy – Topline Research

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