HISTORY AND BACKGROUND
Mari Gas Field is located at Daharki, District
Ghotki, approximately 96 Kms North-east of Sukkur. ESSO Eastern
Incorporated (EEI) discovered this field in 1957 with the drilling of
Mari X-1 to a depth of 2053 feet in the Lower Kirthar ZN-'B' Lime
Stone Formation. The field was first developed in 1965 to supply gas
to Exxon (now Engro) Chemical Pakistan Limited.
EEI operated the Mari Gas Field as a joint venture
with Government of Pakistan (51:49), titled as Pak Stanvac Petroleum
Project (PSPP) until 1983. When ESSO decided to sell its investment in
Pakistan, its interest was purchased by Fauji Foundation through
Government of Pakistan. Hence, Mari Gas Company Limited was
incorporated on December 04, 1984 as an un-listed public limited
company. It was decided that shares of Mari Gas Company Ltd be held by
the Government of Pakistan, Fauji Foundation and Oil & Gas
Development Corporation in the ratio of 40:40:20 respectively.
The Government of Pakistan in 1994 divested 20% of
its shareholding in favour of general public and the company was
listed on all three Stock Exchanges of Pakistan.
The Company is managed by a Board of fourteen
Directors, who are elected by the shareholders in proportion to their
In terms of the Articles of Association of the
Company, Fauji Foundation has the exclusive right to nominate the
Managing Director of the Company. The Managing Director is responsible
for running the day to day affairs of the Company. He is assisted by a
well organized team of General Managers, Managers, and other staff
members, who are qualified and trained in various disciplines of the
DEVELOPMENT OF MARI FIELD
Mari Gas Field, since its discovery in 1957, has
shown an impressive progress under the phased development plans. The
production facilities, today, consist of 67 producing gas wells, two
manifolds, and about 200 Kms of gathering lines. The gas from the
field is being supplied to the four major clients, namely, Engro
Chemical Pakistan Limited (103 MMSCF/day), Fauji Fertilizer Company
Limited (153 MMSCF/day), Pak Saudi Fertilizer Limited (80 MMSCF/day)
and WAPDA Guddu Power Plant (90 MMSCF/day).
With the expansion in the operation, the manpower
requirement and consequently the personnel strength at the field also
increased gradually. The Company, therefore, constructed its own
self-contained colony at the field which provides accommodation as
well as other amenities like electricity, water, schooling,
club/sports facilities and medical cover at our own hospital, to all
Mari Gas Company, over the period, has become a
sound revenue generating organization and has earned a good reputation
for efficient operations. A brief account of some of its achievements
is as follows:
A. DEVELOPMENT PHASES
Mari Field was developed in five phases and with
the completion of Phase V the Company is in a position to produce 426
MMSCF/day of natural gas. To Company's credit, all phases were
completed in time and the customers have never faced any shortage or
shut down since the Company's inception.
B. DRILLING OF DEEP WELLS
In order to explore the deeper horizon of the
field, the Company drilled two deep wells as part of Phase V. Gas was
discovered in both the wells at the average depth of 9000 feet in Goru
B formation. Based on drilling and testing of two deep wells and
interpretation of 440 line Kms seismic data, (conducted in 1999) the
reserves of discovered gas are estimated at 1.143 T.C.F (proven and
C. SAVING IN COUNTRY'S FOREIGN EXCHANGE
Over 75% of all urea manufactured indigenously is
produced from gas supplied by Mari Gas. This substitutes for the
imported fertilizer and saves foreign exchange for the national
COMPANY'S INCOME AND ASSETS
Mari Gas is registered as a Public Limited Company
with an authorized share capital of Rs 2,500 million. The current paid
up capital is Rs 367.5 million. The Company pays a guaranteed return
at the rate of 30% to its shareholders. Contribution to the national
exchequer, in the form of development surcharge, taxes and other
levies is now over Rs 10 billion per annum. The Company so far, has
contributed over Rs 60 billion to the Government of Pakistan.
IMPACT ON NATIONAL ECONOMICS AND SOCIAL CONDITIONS
The Company has made significant contribution in
the national development by providing raw material to the fertilizer
industry and supplying gas to WAPDA for power generation. Besides
contributing at national level, the Company is also doing a lot at
regional level. It has not only provided jobs to the local population
but also created infrastructure in the Daharki area which has helped
in local development. The Company has so far provided 225 Kms of
unmetalled and about 45 Kms of metalled roads benefiting nearly two
hundred thousand local residents. In addition, the Company has also
provided medical facilities for the population of the villages in and
around the gas field by operating eight Field Dispensaries with
qualified physicians. Treatment and medicines are provided free of
cost to nearly 60,000 patients annually. Financial aid is also being
provided to the educational institutions of the area for raising local
For effective reservoir management, the Company has initiated
Development Project — Phase VI for Shallow Habib Rahi reservoir. The
project has been approved by the Company's Board of Directors and the
Government approval has been obtained. The scope of the project
includes drilling of seventeen shallow gas production wells and
conducting a compression study. The additional wells and installation
of compression are essential for enhanced gas recovery, maintenance of
desired pressure for fertilizer plants and for homogeneous depletion
of the field. The total cost of the project is estimated to be US$
14.2 million. With the development of Phase VI the production capacity
of field will also be increased. Drilling of seventeen production
wells has commenced on December 20, 2002.
With the discovery of gas established through exploratory drilling in
the deeper horizon (Goru B Sands) the Company undertook an appraisal
programme to assess the extent of the deep gas reservoir. Based on the
processing and interpretation of seismic data six deep appraisal wells
were drilled. Four of the six wells drilled are gas producers. The two
dry deep wells at Goru B level were completed as Habib Rahi producers.
The commerciality of the discovery has been approved by the
government. Due to poor quality data acquired through 2D Seismic
Survey conducted in 1999 a 3D Seismic Survey and drilling of few more
appraisal wells was required before full development of the deep
reservoir could be undertaken. Phase-1 of the 3D Seismic Survey has
been completed. Acquired data has been processed and is being
interpreted. If the data quality is good, then the Seismic Survey will
be extended to the entire prospective area. The Company at the same
time is proceeding with the development of already drilled wells to
bring these on production.
Mari Gas Company Limited is also actively pursuing exploration,
appraisal and development activities outside Mari Gas Field Area. Such
activities are financed against a fund generation upto 30% of the
Company's annual gross sales revenue with a maximum annual limit of
US$ 20 million.
The Company is currently a joint venture partner in the following
The Company is also in advance stage of acquiring a
5% share in two Deep offshore Blocks and onshore Bolan Block which is
in reservoir appraisal stage.
The Company is evaluating new acreage as well as
other blocks independently to identify potential areas of investments
for both on-shore and off-shore prospects.
This is an initial step towards growth and with a
dedicated and experienced team of professionals, the Company is
striving to expand its exploration activities and consequently its
reserve base as well as its development and production operation in
the years ahead.
According to Wood Mackenzie's Q 3 Indian Sub
Continent Upstream Report, covering the period July 1995 to June 2002,
Mari Gas Company Limited:
Invested only US$ 12 million but discovered 22% of the total reserves.
Discovered the second largest reserve with Mari Deep field.
Ranks first in the operator rankings with the lowest finding cost of
only US# 0.04 per boe reserves discovered.
Had been a successful player in the exploration sector in Pakistan.