Mari Petroleum Company Limited, a key player in Pakistan’s oil and gas exploration and production landscape, has emerged as the second-largest natural gas producer in the country.
Mari Petroleum Company Limited, a key player in Pakistan’s oil and gas exploration and production landscape, has emerged as the second-largest natural gas producer in the country. Operating the expansive Mari Gas Field in Daharki, Sindh, the company boasts an impressive 70 percent exploration success rate, surpassing industry averages both nationally and internationally.
Mari Petroleum caters to a diverse clientele, including fertilizer manufacturers, power generation companies, gas distribution entities, and refineries.
In addition to its flagship Mari Gas Field, the company holds development and production leases and assumes operational responsibilities for exploration blocks. Furthermore, it actively collaborates with prominent national and international Exploration and Production (E&P) companies on various development and production initiatives.
Fueled by the strategic vision and support of its key shareholders—Fauji Foundation with a 40 percent stake, OGDCL holding 20 percent, and the Government of Pakistan with an equivalent 20 percent—the company has demonstrated commendable financial performance over the past seven years.
During fiscal year 2017, Mari Petroleum reported a remarkable 30 percent surge in revenues, coupled with an extraordinary 50 percent year-on-year increase in earnings. This upward trajectory was driven by a focused production strategy, capitalizing on the incentives outlined in the 2012 Petroleum Policy, resulting in an additional 18 billion cubic feet of gas production.
The subsequent fiscal year, 2018, witnessed record-high production rates, translating into unprecedented profits. Total production increased by 5 percent year-on-year, propelling gross sales to exceed Rs100 billion for the first time. Net profits recorded an impressive 68 percent year-on-year growth, with additional income providing crucial support to the bottom line.
In fiscal year 2019, despite challenges such as increased royalty expenses and exploration costs, Mari Petroleum reaped the benefits of high oil prices and currency depreciation, experiencing a growth of over 58 percent year-on-year.
This positive trend continued into fiscal year 2020, a year marked by depressed oil prices and pandemic-induced disruptions. Yet, Mari Petroleum’s gross sales increased by approximately 8 percent, driven by a 20 percent surge in gas wellhead prices and currency depreciation. Although oil and gas production experienced slight declines, profits grew by over 24 percent year-on-year.
The subsequent fiscal years, 2021 and 2022, brought new challenges and opportunities, marked by fluctuating oil prices and the imposition of Super Tax on companies. Nonetheless, Mari Petroleum demonstrated resilience, with revenues growing by 4 percent in FY21 and by an impressive 32 percent in FY22, attributed to higher hydrocarbon production and favorable pricing.
In FY23, amidst high prices and currency depreciation, Mari Petroleum achieved remarkable growth, with net sales surging by around 53 percent and bottom-line figures increasing by an impressive 70 percent year-on-year. This robust performance was primarily driven by a 28 percent devaluation of the domestic currency and higher wellhead prices at Mari Gas Field.
Embarking on the first quarter of fiscal year 2024, Mari Petroleum continued its upward trajectory, reporting its highest-ever net profit of Rs19 billion, representing a 50 percent year-on-year increase. This remarkable performance was fueled by increased oil and gas production, with hydrocarbon sales reaching record levels.
Moving forward, Mari Petroleum is poised for further growth, with planned initiatives such as the production of 11MMSCFD gas from Mari Ghazij-2 and strategic collaborations in mining projects. With a solid foundation and a forward-looking approach, Mari Petroleum remains at the forefront of Pakistan’s energy sector, paving the way for a sustainable and prosperous future.