Mari Energies Ltd. expects gas production from its Ghazij/Shawal field to rise to 120 million cubic feet per day (mmcfd) by the end of fiscal 2027 and reach 222 mmcfd by fiscal 2028, according to an analyst briefing following the company’s annual general meeting.
Muhammad Abdur Rafay, research analyst at Topline Securities, said management expects the Ghazij/Shawal field to eventually provide up to 400 mmcfd, although reaching that level could take several years as production from the company’s HRL reservoir declines.
The field is expected to increasingly serve as a backfill for HRL, while Mari Energies plans more than 100 wells at Ghazij/Shawal, with some already drilled.
Rafay said Mari Energies might need about $1 billion in capital expenditure over the next five to six years to develop Ghazij/Shawal to its 222 mmcfd potential.
Fertilizer companies are expected to finance about $250 million of the investment, with Mari Energies funding the remainder, according to management. The company achieved its highest-ever production of 41.28 million barrels of oil equivalent (MMBOE) in fiscal 2026, up from 39.13 MMBOE a year earlier.
Rafay said management attributed the higher production partly to an LNG supply disruption triggered by the ongoing geopolitical situation, which increased demand for domestic gas. The company, however, lost the SNGPL pipeline in an incident last month.
During fiscal 2026, Mari Energies’ production volumes averaged 113,000 barrels of oil equivalent per day, against production capacity of 136,000 BOE per day. Operating expenditure stood at $2.24 per BOE.
Management has lowered the production potential of its North Waziristan assets, including the Shewa and Spinwam fields, to 200 mmcfd from an earlier estimate of 300 mmcfd, Rafay said.
The revision follows a government gas-demand assessment, while security conditions in the northern region are also restricting the company’s ability to deploy additional drilling rigs. The security situation has pushed operating costs in the region to around USD 3.5-4 per BOE, according to management.
Under a new government policy, an additional 40 cents per unit of gas has been allowed for new discoveries to compensate producers for higher security-related costs. Spinwam is eligible for the revised pricing, management said.
New discoveries face security, processing challenges
The Maiwand Block 28 discovery, announced in 2024, has yet to begin production because of security concerns. Management expects the field to come online within the next 12 to 18 months, Rafay said.
Production from the Soho discovery could take longer because of its high carbon dioxide content. The field will require a gas-sweetening plant, which management expects could take another 24 months to complete.
The company is evaluating alternative development plans to bring Soho into production earlier, according to the briefing.
Mari Energies reported a reserve replacement ratio of 375%, with 2P plus 2C reserves at 1,029 MMBOE.
The company reported operating profit of Rs. 82.6 billion and net profit of Rs. 87.1 billion for fiscal 2026. It declared a Rs. 27 per share dividend, representing a 37% payout.
Beyond oil and gas, management said the company is continuing its diversification strategy through minerals, including the Tuzgi project, digital infrastructure under Sky47 and emissions mitigation through GEM. Rafay said the Islamabad data center under Sky47 is operational, while construction of the Karachi data center has started.