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SPECIAL REPORT
SPECIAL REPORT
Mari Gas Company Limited
Mari Gas Company Limited
In an era of worst-ever energy crisis
in the history of Pakistan, Mari Gas
Company Limited (MGCL) proudly
enjoying the matchless record of
providing uninterrupted gas supply to
the national energy mix since last 43
years. One of the largest oil & gas
exploration and production companies
in Pakistan, the MGCL is shouldering
the national burden to produce 11.6
percent of the total gas production of the
country.
Already leading in gas market of
Pakistan and moving beyond to the
existing gas business, the MGCL is on
the path of exploiting any hydrocarbonbased source not only in the country but
abroad as well. The company's working
interests in onshore exploration licenses
in Pakistan and overseas are 14, out of
which 6 are being operated by MGCL.
According to Energy Year Book
2009, 1.46073 Trillion Cubic Feet (TCF)
of natural gas in Pakistan was produced
during the year 2008-09. That makes it
4,002 Million Cubic Feet (MCF) of gas
production per day by 14 local and
multinational gas exploration companies.
Mari Gas remained the 4th largest
gas producer company in Pakistan with
total gas production of 1.69 Billion Cubic
Feet (BCF) annually and with an average
production of 465 MCF per day. By May
2010, it has reached to 492 MCF per
day. MGCL gas field in Dist Ghotki,
By Mohsin Babbar
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Sindh, is the third largest gas producing
field of Pakistan, after Sui in Balochistan
and Qadirpur in Sindh.
In gas sector alone, MGCL has to
progress a lot in near future. As per the
information available to Energy Update,
the company, since it's inception in 1957,
has so far produced 3.666 TCF of gas,
while 4.806 TCF of proven recoverable
gas reserves are yet to be exploited.
On an alleyway to make advancement
in oil exploration sector, MGCL has
discovered first oil well in Balochistan's
Ziarat Block Khost well 2. To appraise
the potential of this discovery, the
company has undertaken a 6 month
Extended Well Test (EWT) evaluation
by installing Early Oil Production
Facility on the well. Based on the
appraisal well results, the development
and production will be planned
accordingly.
Despite having serious security
impediments in allocated blocks of
Balochistan, MGCL has dared to
continue its operations. That makes the
MGCL only operator in North West
Balochistan to continue its operations in
a cost effective manner.
Taking stock of the financial situation,
revenues of the company have also
increased phenomenally from 0.8 billion
in 1985 to Rs 26.5 billion in 2008-09.
Resultantly, contribution to national
exchequer, in the form of levies, also
increased from 0.5 billion to Rs 21.9
billion, representing 83 percent of the
gross sales. MGCL remains the most
economical company in comparison to
other gas production companies
operating in Pakistan.
A glorious history:
In 1957, when the Company was
operating as Esso Eastern Inc., Mari Gas
Field was discovered in Daharki, Dist
Ghotki of Sindh, Pakistan with initial
gas reserve estimate of 3TCF. Over the
years with the phased development of
the Field and the subsequent reservoir
evaluations the Field reserves size
enhanced to 6.8TCF, thus making Mari
the country’s 2nd largest gas field.
Additional exploration in deeper horizon
yielded a discovery of another gas
reservoir of approximately 1.861TCF.
In May 1983, Fauji Foundation, a
major Pakistani group with active multisectoral presence, including but not
limited to, Oil & Gas, Cement, Power,
Fertilizer, Financial & Food Processing,
acquired the entire business operations
of Esso Eastern Inc. in Pakistan which
comprised the Mari Gas Field.
During December 1984, the business
was reorganized and incorporated as
Mari Gas Company Limited (MGCL)
which took over the assets, liabilities
and operational control of Mari Gas
field.n
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SPECIAL REPORT
SPECIAL REPORT
Mari Gas Company Limited
Mari Gas Company Limited
Our growth strategy
stems out from our
vision to "become a
leading Pakistani E&P
company, characterized
by excellent financial
results, outstanding
p r o f e s s i o n a l
By Asif Ali
accomplishments,
Rangonwala
superior operational
Manager Business
performance and strict
Development
adherence to high
environmental standards,
by developing further our core upstream value chain
and expanding into profitable downstream”
MGCL is on track to develop a strong and wellbalanced portfolio of upstream assets capable of
meeting the country’s future energy requirements
in a secure and a responsible way. While cost
inflation continues at a high, the market demand for
resources is very much expected to remain intense.
Against these high prices the capital cost of the
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projects both upstream and
downstream is rising sharply. MGCL’s
primary strategy for success will be
the continued focus on projects
delivery and on operational excellence.
On upstream side, the company
immediate plans include to reinforce
its core business by focusing on its
exploration efforts in Sujjwal and
Karak blocks and developing new
projects with medium to long term
productive lives like Zarghun South,
Sukkur, Ziarat and Mari (Guru B). As
our growth strategy seeks to become
an industry leader in securing the
energy supplies of the country,
medium to long term plan of the
company is to build a diverse asset
portfolio with optimum blend of
national and international assets.
Our commitment to be innovative
in creating synergies with the leading E&P companies of the world lies at the core
of our internationalization strategy which has started reshaping our exploration
portfolio by extending our reach into oil-rich Middle East region.
In the downstream sector, our emphasis will be to keep looking and evaluating
the opportunities in the national arena where we can create value by leveraging our
operational expertise, sound financial base, project management skills and the quality
of our people. Integrating vertically into downstream businesses like gas storage,
oil and gas transmission network, distribution and marketing of petroleum and
petroleum related products and services will continue to be our main focus. As the
downstream becoming more competitive and demanding our growth strategy in this
sector would be to enhance our competitive position by improving the quality, safety
and competitiveness of our operations. n
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SPECIAL REPORT
SPECIAL REPORT
Mari Gas Company Limited
Mari Gas Company Limited
CSR preference at Mari Gas
Corporate Social Reimplementing CSR programs
sponsibility stems out of
not only in its primary operaCompany’s acceptance of
tional areas in Daharki but also
its responsibility for the
contributing significantly in
impact of its business acother areas primarily as a social
tivities on its stakeholders
participant and not due to any
including but not limited to
legal obligation.
the environment, consumCSR jobs carried out in Mari D
By Munir A Memon
ers, employees, local com& P lease and JV blocks are
DM Public Affairs
munities and the general
given as under:
society. The prime focus of
CSR approach is to carryout sustainable Mari D & P lease area
development programs in-and-around
In Mari lease area the company is
the operational areas to meet the present not under any legal obligation to underneeds of local communities without un- take any CSR initiative but as a respondermining the capacity of future gener- sible corporate entity, MGCL believes
ation to meet their needs.
in playing effective role in the sustainable
MGCL has an impressive record of
development programs to ensure maximum economic benefit to marginalized
sector of society.
Details of projects carried out are as
under.
Health Sector
a. Operating the mobile dispensaries since 1987. Field dispensaries are
established at ten well locations. Annual
expenditure on this account is approx
Rs.10 million
b. A maternity home at U.C Dad
Leghari, made operational since 2003.
Rs. 2.5 million is being spent annually.
c. A dispensary has been con-
structed at well No. 8 for the treatment
of Tuber Closes patients.
d. Mother & Child Healthcare
Centre constructed at civil hospital Mir
Pur Mathhelo costing Rs. 11 million.
e. Hepatitis ‘B’ vaccination program being one of the major initiative
in the health sector. Rs. 60 million have
been spent so far in vaccinating 130,000
people of the area. Herbal treatment of
the patients is also undertaken.
Education Sector
a. MGCL has so far played vital
role in uplifting education facility by
constructing number of new schools,
renovation of old school buildings and
providing furniture, books, ceiling fans,
computers etc.
b. A joint venture mega project of
Pakistan Chemical & Energy Sector Skill
Development Company has established
a Technical Training Centre at Daharki
with approximate cost of 180 million.
MGCL contribution for this program
Rs.31 million as per commitment.
Provision of clean water
The Company has constructed 15
water tanks at different locations each
having 2,000 gallons storage capacity
for providing clean drinking water. Work
is currently in progress on another 10
new storage tanks.
Joint Venture Blocks
MGCL is also operating several joint
venture exploration blocks in all four
provinces of the Country. These JV
blocks remain the focus of the company’s
CSR program despite many limitations.
Some of our completed projects have
already been handed over to the district
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government as per government policy,
Work on some projects in JV blocks is
currently in progress.
Details of completed CSR schemes
in JV blocks are given below:
Ziarat Block – Distt Harnai, Baluchistan
a. Water supply scheme in Ziarat
Kach Distt Harnai.
b. Construction of additional two
rooms and boundary wall at Khost dispensary.
c. Construction of additional
rooms at Girls Primary School Khost.
d. Renovation and provision of
furniture / equipment at Boys High
School Khost.
e. Establishment of Free Medical
Camp at Khost.
Zarghun Block - Baluchistan
a. Construction of Primary School
at Dilwani, district Harnai.
b. Construction of lined water
channel at Dilwani.
c. Construction of dispensary at
karak (in progress).
d. Widening/Repair of public road
12 k.m (in progress).
Hanna/Harnai Blocks
The following CSR schemes are currently in progress.
a. Construction of Girls Primary
School at Hanna Urak.
b. Construction of additional
rooms and provision of equipment at
Hanna dispensary.
c. Renovation/extension of Primary School at Urak.
Sukkur Block - Sindh
a. Improvement of facilities at Rehabilitation Centre for handicapped children Allahabad, Shikarpur, and provision
of Suzuki Bolan vehicle to provide pick
and drop service to the children and staff
members.
b. Improvement of facilities at
Govt Service Centre for Blinds, Shikarpur.
c. Repair/renovation of Primary
School Goth Ali Gohar. Shar, Tehsil
Khanpur, Distt Shikarpur.
d. Repair/renovation of mosque at
Ghari Syed, Tehsil khanpur, Distt Shikarpur.
e. Complete renovation of
R.C.P.H.C Centre for handicapped children at Sukkur at approximate cost of
Rs. 2.5 million (work is currently in
progress). Establishment of Free Eye
Surgical Camp at Rahimabad, tehsil
Khanpur.
Sujjawal Block – Distt Thatta
a. Numerous schemes regarding
provision of drinking water, health and
education etc are in planning phase, and
will be finalized shortly.
b. Establishment of Free Eye Surgical Camp at tehsil hospital Jati was
arranged for the people of the area.
Karak Blocks - Khyber Pakhtoon
Khawa
a. Arranged Free Eye Surgical
Camp at tehsil hospital Takht-e-Nusrat
in collaboration with Al-Shifa Eye Trust.
b. Other schemes regarding provision of drinking water, health are being
finalized keeping in view the urgency of
the requirement.n
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