Mari Energies rejects claims over Petrosin GSPA termination

Mari Energies, one of Pakistan’s largest E&P companies, has rejected allegations that it had wrongfully terminated its Gas Sale and Purchase Agreement (GSPA) with Petrosin CNG (Pvt) Ltd, saying the company’s position has consistently been upheld by Pakistani courts and that the matter remains subject to confidential International Chamber of Commerce (ICC) arbitration proceedings.

The listed E&P disclosed the development in a notice to the Pakistan Stock Exchange (PSX) on Tuesday.

“Mari Energies Limited categorically denies any allegations that the GSPA with Petrosin was wrongly terminated. It is a matter of record that the GSPA required Petrosin to have a valid license and that Petrosin did not have a valid license on the date the GSPA was terminated,” MARI clarified.

The clarification comes in response to recent media reports concerning the termination of the GSPA with Petrosin CNG (Pvt) Ltd and the ensuing ICC arbitration proceedings.

The company said that its position has been consistently upheld by Pakistani courts and no adverse order against it is presently in the field.

“The stance taken by MariEnergies in the relevant court proceedings is already a matter of public record,” it said, adding that the pending arbitration proceedings are confidential in nature.

“MariEnergies remains confident that it will be vindicated in these proceedings,” it concluded.

The company is an integrated oil and gas exploration and production company, with around a 70% exploration success rate, which is much higher than industry averages of around 33% nationally and 14% internationally.

MARI’s key customers include fertiliser manufacturers, power generation companies, gas distribution companies, and refineries.