Margala Block with an area of 1,847 sq. km is situated in the Potohar Basin in the vicinity of Islamabad, the MPCL said in a statement.
The companies under the agreement will collaborate their resources and efforts to jointly perform exploration activities in Margala Block, according to the statement.
MPCL shall become a significant Working Interest Owner in the Petroleum Concession Agreement of the Block along with Pakistan Oilfields Ltd, and MOL Pakistan as the Operator.
The assignment of working interest shall be subject to the government’s approval.
“This agreement is part of MPCL’s aggressive strategy not only to increase its exploration acreage, reserves replacement ratio and maximizing shareholder’s value but to also meet the country’s increasing energy demand from indigenous resources and lowering the burden of imported fuels on the national economy,” according to the press release.
“The MPCL shall be expanding its footprint in Potohar Basin which also includes Ghauri Block located near Rawalpindi and Jhelum districts,” the statement added.