Mari Petroleum Company Limited (MARI), one of Pakistan’s top energy companies, has entered into an agreement with Orient Petroleum Inc (OPI), an exploration and production company, for the provision of Early Production Facilities (EPF) on a turn-key basis for Shewa-I Discovery in Waziristan Block.
MARI shared the development in a notice to the Pakistan Stock Exchange (PSX) on Thursday.
OPI will “provide operations and maintenance (O&M) services for a period of twenty-four months from the start of production,” read the notice. The contract also has a provision for MARI to purchase the EPF equipment.
Last year in June, MARI announced the discovery of gas & condensate at Shewa-I (formerly Bannu West-l) Exploration Well drilled in the Waziristan (formerly Bannu West) Block, KP Province.
MARI is the operator of Waziristan Block with 55% working interest; whereas OGDCL and OPI are joint venture partners having working interest of 35% and 10% respectively.
The development comes as Pakistan faces an energy crunch as its reserves continue to deplete, while the country struggles to obtain fuel cargoes.
The economy remains engulfed in a balance of payment-crisis with the country’s central bank foreign exchange reserves standing at a mere $4.2 billion, not enough to cover a month of imports.
Meanwhile, authorities in Islamabad have imposed stringent import curbs that have dented industrial activity in the country.
