ISLAMABAD:
Mari Energies is targeting to produce around 25,000 barrels per day (bpd) of oil from its three discoveries in the Abu Dhabi block.
In the company’s corporate briefing held on Tuesday to discuss its FY25 performance and the future outlook, the management confirmed that a board meeting was organised with the Abu Dhabi National Oil Company (Adnoc), where the production plan was approved and “the project will now move to the development phase”.
Mari management revealed that they were eyeing a production target of around 25,000 bpd from the three discoveries in the Abu Dhabi block.
The company reached the highest-ever production level of 39.13 million barrels of oil equivalent (mmboe) in FY25. However, it outlined that gas supply curtailment and an additional 15% royalty resulted in lower earnings during the financial year.
The company has managed to reduce reliance on the Mari field to 80% (compared to 95% in FY20), following new discoveries in Waziristan and Sujawal blocks.
While a deferment plan for liquefied natural gas (LNG) cargoes has been sent to Qatar and is awaiting approval, Mari anticipates a 10-15% decline in production due to curtailment in FY26 if the plan is not approved. It added that part of this risk could be mitigated through third-party allocation, however, it is unlikely to fully offset the impact of curtailment.
Currently, the Shewa gas field has a production capacity of 70 million cubic feet per day (mmcfd) while the Spinwam well (set to be added to the same facility) is expected to contribute an additional 30 mmcfd initially. Upon full development, these frontier fields are projected to add a further 200 mmcfd.
According to the Mari management, it will take around two to three years to push both Spinwam and Shewa to their combined full potential of 300 mmcfd. The estimated capital expenditure (capex) on these developments will be $400-500 million if new equipment is purchased, however, the company is also exploring other alternatives, which may lower the capex level.
Ghazij and Shawal fields are currently undergoing extended testing, contributing approximately 40 mmcfd. Combined, the fields have the potential to produce up to 58 mmcfd but they are not operating at full capacity and are awaiting allocation. Once the allocation is granted, further development could increase output by 180 mmcfd, which is expected to be achieved in 18 to 24 months.
Mari aims to sustain its current production level of 595-600 mmcfd from the Habib Rahi Limestone (HRL) reservoir as long as possible through production enhancement facilities. The company currently has no plans to increase production from this field.
Regarding Sky47, the management expects the first data centre to be completed soon, while the one in Karachi is scheduled for completion by the end of next year. The Karachi data centre will operate on a hybrid energy mix, combining green energy and grid power, whereas in the north they will initially rely solely on the grid, with plans to move towards a more sustainable solution over time.
The management of Mari Energies shared that the company aims to maintain a drilling pace of 15 to 20 wells annually over the next five years.
