Interim Financial Statements (Un-audited) For the Nine ...

Mari Petroleum Company Limited

For the Nine Months Ended March 31, 2018

Interim Financial Statements(Un-audited)

For the Nine Months Ended March 31, 2018 1

��21, Mauve Area, 3rd Road, G-10/4 P.O. Box 1614, Islamabad-44000 Tel: 051-111-410-410, 051-8092200 Fax: 051-2352859 Email: [email protected]

AuditorsDeloitte Yousuf Adil, Chartered Accountants18-B/1, Chohan Mansion, G-8 Markaz,Islamabad - 44000, PakistanTel: 051-8734400-3, Fax: 051-8350602Email: [email protected]: www.deloitte.com

Shares RegistrarM/s Corplink (Pvt) LimitedWings Arcade, 1-K Commercial, Model Town, LahoreTel: 042-35839182, 042-35916714Email: [email protected]

Legal AdvisorAli Shah AssociatesAdvocates High Court1-Ali Plaza, 4th Floor 1-E, Jinnah AvenueBlue Area, IslamabadTel: 051-2825632

BankersAllied Bank Limited Askari Bank Limited Bank Alfalah Limited Habib Bank Limited National Bank of Pakistan United Bank Limited

�� Daharki, District Ghotki Tel: 0723-111-410-410, 0723-660403-30 Fax: 0723-660402

��D-87,Block 4, Kehkashan, Clifton P.O. Box 3887, Karachi-75600 Tel: 021-111-410-410 Fax: 021-35870273

�� Housing Scheme, Airport Road, Quetta. Tel: 081-2821052, 2864085, 2839790 Fax: 081-2834465

Registration Number 00012471National Tax Number 1414673-8GST No 07-01-2710-039-73Symbol on Pakistan Stock Exchange MARI


CONTENTS Board of Directors05Directors’ Review 07Condensed Interim Statement of Financial Position20Condensed Interim ��22Condensed Interim Statement of Other Comprehensive Income 23Condensed Interim Statement of Cash Flows24Condensed Interim Statement of Changes in Equity25Notes to the Condensed Interim Financial Statements26

01 Directors’ Review (in Urdu)


BOARD OF DIRECTORS1. Lt Gen Syed Tariq Nadeem Gilani (Retd) Chairman Managing Director, Fauji Foundation

2. Lt Gen Ishfaq Nadeem Ahmad (Retd) Managing Director/CEO, Mari Petroleum Company Limited

3. Mr Qaiser Javed Director Finance, Fauji Foundation

4. Dr Nadeem Inayat Director Investment, Fauji Foundation

5. Maj Gen Javaid Iqbal Nasar (Retd) Director Welfare (Health), Fauji Foundation

6. Brig Raashid Wali Janjua (Retd) Director P&D, Fauji Foundation

7. Mr Sajid Mehmood Qazi Joint Secretary (A/CA), Ministry of Energy

8. Qazi Mohammad Saleem Siddiqui Director General (Gas), Ministry of Energy

9. Mr Shahid Yousaf Director General (LG), Ministry of Energy

10. Mr Zahid Mir Managing Director/CEO, OGDCL

11. Mr Ahmed Hayat Lak General Manager (Legal Services), OGDCL

12. Engr S. H. Mehdi Jamal Member, MPCL Board of Directors

13. Mr Manzoor Ahmed Managing Director (Acting), NITL

Mr Muhammad Asif��!��

Mr Assad Rabbani Company Secretary


��!��"��#��$%��!��

��#!��&'��(��)"��#!��$��#��%��'��!��*�'��!��$$�March 31, 2018.

FINANCIAL RESULTSGross sales for the third quarter amounted to Rs. 24,778 million whereas gross sales for nine months ended March 31, 2018 aggregated to Rs. 72,368 million as against cumulative sales of Rs. 74,137 million for the corresponding period due to reduction in consumer price for power sector as well as reduction in sales tax on feed gas for fertilizer industry. Net sales for nine months ended March 31, 2018 were Rs. 28,592 million as against Rs. 19,866 million for the comparative period. +��#��*� ��!�� !�� $�;��'�#�� #��$��<�=� �>�>��!!��*��<�=��>?��!!��#��$��*�;��=�+��!��#��to March 31, 2018 is Rs. 10,784 million as against Rs. 6,307 million of the corresponding period. Increase in ��!��$��$�$��V#!��$�#��#��*�V#�$��'��X��#��[�!��=�+��'��'��#��*�V#��!��*��$�#��V��=

��(��$�&+��#��#��$��$��$�$�\�<�=� =?]�#��$��^ ?_`��$��*�{��30, 2018 in March 2018.

OPERATIONSThe Company continued un-interrupted gas supply to all its customers during the period from July 2017 to March 2018.A cumulative 180,678 MMSCF of gas at a daily average of 659 MMSCF and 12,813 barrels of condensate (47 barrels per day) were produced from Mari Field during the period as against 173,326 MMSCF of gas at daily average of 633 MMSCF and 10,974 barrels of condensate (40 barrels per day) for the corresponding period as per the requirement / withdrawal of the customers.In addition, 318,682 barrels of crude oil (1,163 barrels per day), 54,936 barrels of condensate (200 barrels per day) and 10,303 MMSCF of gas (38 MMSCF per day) was produced and sold from joint ventures during this period, whereas 352,854 barrels of crude oil (1,288 barrels per day), 57,216 barrels of condensate (209 barrels per day), 9,491 MMSCF of gas (35 MMSCF per day) was produced and sold in the comparative period.The Company’s customers include Engro Fertilizer Limited, Fauji Fertilizer Company Limited, Fatima Fertilizer Company Limited, Foundation Power Company Daharki Limited, Central Power Generation ��#��$��|��}��#!��$��}��#��$��~��<��$�� |��!� <�� $�� <�� $�� ~��[� <�� $�� }~�� ^��`�Limited, Petrosin CNG (Private) Limited and Foundation Gas.

�*��!��$+��!��$��$��(��$!��#!�(�!��&EXPLORATION PLAN FOR 2017-18 (Operated and Non Operated)

)� �~��[*��*��]�� '!!��'��#!��$��!�$��*��$��*��'!!��#��[��$��#��=��'��'!!��!��*��[!��'��$��$��]��>�

Mari Petroleum Company Limited8

due to delay in necessary JV approvals and 3 contingent wells namely; Prospect-3 (Lower Goru), PKL ��$��!$��[��$��#��'��;��*��$��*�[��*��#��$�#!��*� the well. On the other hand, 4 wells have been added in the drilling plan of 2017-18 including one exploratory well ��!��[!��$��$!�#��'!!��[�[�<��level to extend production plateau of Habib Rahi reservoir. Accordingly, the original plan for drilling of 13 wells during the year 2017-18 remained same.

�/��3 ��

)� Type 4 ��5�� StatusTipu-1 Exploratory Mari Field Gas Discovery in B Sand

Azadi-1 Development Mari Field Gas producer in B Sand

Bhitai-5 Appraisal Mari Field Gas Producer in SML

Shaheen-2 Appraisal Mari Field Location stacked and well shall be drilled during 2018-19

Mari-102 Development Mari Field Location Stacked



Dharian-1 Exploratory Ghauri Drilling in progress

Bolan East-1 Exploratory Ziarat Civil works completed and expected spud-in by June 2018

�� Exploratory Sukkur Drilling in progress

$��/��3 ��

)� Type 4 ��5�� StatusZarbab X-1 Exploratory Hala Drilled and suspendedQamar X-1 Exploratory Hala ��[��!��$Benari X-1 Exploratory Shah Bandar Civil work is currently in progress and expected spud-in

by May 2018

&��6��9��Details of the Company plan to acquire 2D and 3D Seismic data are as follows:

Operated

&��4 ��:Planned: 617 Line km (Firm) and 214 Line km (Contingent) 2D Actual: 758.76 Line km 2D seismic data acquisition has been completed on December 03, 2017.

4��)��4 ��:�Planned: 3D: Zipper-I: 672 sq. km (Firm) and Zipper-II: 178 sq. km (Contingent) 2D: 285 Line km (Firm) and 100 Line km (Contingent)Actual: Partial acquisition of 99 line km 2D seismic data has been completed as on April 3, 2018.


Non-Operated

�� 4 ��:�Planned: 306 Line km (Firm) and 119.5 Line km (Contingent) 2D Actual: Currently, bid evaluation is in progress.

��;��&�� $�� #��$$� �'� ��*�� '�� *�� V#!�� ##��!� ��$� $!�#��potential. Accordingly, a strategy was carved-out to optimize the potential of Mari D&P Lease through drilling of exploration, appraisal and development wells. In this regard, drilling of seven wells has been #��$��**��!�� #��=�<��!��!�� '��$� ��!�$��*�three major discoveries namely; Shahbaz-1, Shaheen-1 and Tipu-1 while four appraisal/development wells were completed as gas producer.This approach has not only helped in augmenting the Company’s resource base but has also enhanced production potential by 70-80 MMSCFD. In order to pursue the second phase of exploration/appraisal and development activities prudently, in-house/out-source studies are being undertaken before commencing next Drilling Campaign. Accordingly, third party sequence stratigraphic study has been completed at M/s Geoscience Wales, UK, which revealed deeper insight of Mari D&P Lease. Currently, review/deliberation on study results is in progress to evaluate the future potential of following horizons highlighted by the study:a) Pirkoh limestoneb) Lower Goru B Sand c) Tight gas /Shale gas Potential of Sembar formationd) Exploration potential of Chiltan Limestone

�� <��<��6��#��In order to effectively deal with the higher water rates being separated at manifolds since enhancement of production in 2016, two additional knock-out-drums (KOD) 60” & 64” have been installed at CMF-I and CMF-II respectively. These large sized KODs were designed in-house and installed through utilization of ��$�*��!$��=�"��!!��$$��!��$��$��$��$��the gas handling capacity of both the central manifolds is increased from 525 to 725 MMSCFD.

�� =��3�� >� �� "�� ?�#��"@� �� /� #�� D�� =�?��#��@Technical proposals for the procurement of HCDPU were received and thoroughly reviewed. Case is under ��!��'��!��=

�� D��G� �/6��)� ��#�� =Persistent measures are being taken to extend the full production plateau of Habib Rahi Limestone formation. In view of the preceding resolve, drilling of 19 additional development wells is planned. The wells in HRL formation shall help in uniform depletion, enhanced and sustained production, effective reservoir management and revenue generations for another 4 – 5 years against the incremental price.The drilling campaign shall trigger in May-June 2018 and completion is targeted to be realized in FY 2018-19. Production facilities engineering design has already been completed for all 19 wells. The project involves the installation of 30 km loop lines and 20-25 km of spur lines in order to connect the wellheads with existing gas gathering pipeline network.


Tipu Gas FieldTipu-1 exploratory well in Mari D&P Lease was spud-in on July 05, 2017 to test the hydrocarbon potential of Lower Goru B Sand and to acquire the data for tight sand evaluation in Sembar Formation. The well reached ��+�� > ��!��[��] ��]��=��*��*��'!!��'$��?=?��gas at 40/64” Choke with WHFP of 2153 Psi. During Completion Integrity Test (CIT), well produced 21.4 MMSCFD gas at 40/64” Choke with WHFP of 2635 Psi.

Company has signed an MoU with a fertilizer customer for supply of 40 MMSCFD gas from Goru-B ��+�#��*��!$��=�+��'�*��!!�[��##!�$��!�'!!��$��'��*�#��=�The Company shall construct the Spur line up to the delivery point i.e. CMF-II.

In order to extend the gas plateau rates of 40 MMSCFD beyond third year of production, a development well is planned to be drilled and hook up with dedicated pipeline infrastructure. Well planning has been completed and Long Lead Items (LLIs) have been secured with delivery expected by August 2018. Rig Mari-1 is to be contracted for the drilling of Well Tipu-2 after completing the drilling, testing and completion ��"!!��!��!��=�+��'!!��V#��$��[��#�$��[��;��!�year 2018-19.

�J��<K�)� Azadi-1 well in Mari D&P Lease was spud-in on September 30, 2017 to appraise Lower Goru “B” sand in the Southern Compartment and it reached its TD of 2,995M in Lower Goru B Sand on November 09, 2017. �#��*��'!!��'$��?=>��*��"��>��\��]��=��*�completion integrity test (CIT), well produced 18.3 MMSCFD gas at WHFP of 2470 Psi @ 40/64” choke size. This well shall be used for production enhancement.

4��<M�)� Bhitai-5 Appraisal well in Mari D&P Lease was spud-in on December 11, 2017. During post-acid Drill Stem +��'!!��'$�?=>��*��]��'��"��*��=��+��'��!��$��$��*��'��'$� =��*��"��\��]��size after acid job. The well was completed in SML as a gas producer.

&��<Q�)� Shaheen-2 appraisal well has been stacked on ground on December 30, 2017 to appraise Shaheen Compartment at SML and SUL reservoirs levels. Shaheen appraisal well will be drilled as a dual lateral well with provision of dual completion against SUL and SML down to the total depth of ±2,128M (Measured Depth). Well designing and planning has been completed and currently procurement of LLIs is in progress. Shaheen-2 is scheduled to be drilled in second quarter of FY 2018-19.

��KVQ+��KVW��KVY�)� �Mari 102, Mari 103 and Mari 104 development wells have been stacked on ground. Currently, civil works is in progress and spud-in is expected by May-June 2018.

��/��Average daily production level from HRL remained 614 MMSCFD during the third quarter Jan 2018 to Mar �]��$��]]_�$��;��!��$��!�#��*=��#!��'��~+~��[��]��09, 2018. Total 7,968 MMSCF gas supplied on incremental price during the third quarter.


Z��[�"$�&�"!��;��&�

[;[�&��$�� ;�� $��^�]]��$��*��`��$��'��received on February 22, 2018. Two vendors M/s MSU and M/s Senshe have submitted their bids. Currently, ��!�[�$��!��[��#!�$��'��'�!!�[��!!�'$�[��!��!��=

��!��4��#�&

Z��4 ��4� ��<K�)� Bolan East-1, third exploratory well in Ziarat Block has been stacked on ground on September 07, 2017 to test the hydrocarbons potential of Dunghan, Mughalkot and Chiltan formations down to the depth of ±1,550M. Well designing and planning has been completed. Most of LLIs will be utilized from available inventory and remaining have been received. Civil Works have been completed at site and Rig Mari-1 has been planned ��[��[�!��$��"!!��"!!��!��=�"!!��#!��$��[��#�$��[��{��]��=��

��4 ��

[;[�&��Based on the interpretation of processed and reprocessed data and its integration with available G&G data, ��*��#��#��[��$��#��$��!!��*��V#!��'!!��[!��$��$��*!��commitment has been made to DGPC while entering into Phase-II of the exploration license from March 02, 2018 to March 01, 2020. The well will be drilled in the year 2018-19. It is expected to spud-in by April 2019 and completed by February 2020.

��\/ ��=�)� �&��D��/��4 ��Fourth Exploratory Well Surghar Prospect in Karak Block is planned to be drilled in April 2019 with the targeted depth of 6,000M. Accordingly, well designing and planning work has been completed and approved [�� {�� =�+�$�� #�� [�� $� �� $�� '�� !!� [�followed by technical and commercial evaluation of bids.��G�� 3�D�Gas and condensate production from Kalabagh-1A well is following natural depletion trend. Well would not be able to produce naturally for a longer period of time hence Compression support is needed. Currently, different strategies are under consideration for selection of compression timing and philosophies which are most suited both in terms of technical and commercial.

&��4 ��

[;[�&��Revamped exploration strategy has been chalked out in the block for evaluation of remaining hydrocarbon potential of Sui Main Limestone and other potential reservoirs. Accordingly, 758.76 Line km 2D seismic data has been acquired against the commitment of 300 Line km. Seismic data acquisition in the block was carried out on a fast track basis maintaining an excellent recording pace despite several challenges like marshy ��#�$$��#��#��$��<��$��[$��*��#��'��=��!��#��*��?�=��$��#��*��]]]��*��$��!�


stage at MSPC. Parallel interpretation of the newly processed /re-processed seismic data is also in progress ��$�[��$��V#!��'!!�!��[��#!��$��$��!!��*=��*��#��*�is expected to complete by end of April 2018, which would be followed by interpretation from May-July 2018 ��#��$��$�!�$��!!��'��=��$��!��#��!��$��#��'��}��!�$��'�� $��acquisition is planned. Accordingly, 3D seismic designing has been completed at M/s KL Geophysics UK for ��$��*� ��;��$��$��'��}��!�$��!��=

�\/ ��)� �&�<KFourth exploratory well in Sukkur Block has been spud-in on March 16, 2018 to test the hydrocarbon potential of Sui Main Limestone and Lower Goru formations. The well is planned to be drilled down to the depth of ±2,120M into Chiltan Formation to obtain data and to evaluate the hydrocarbon potential of deeper formations. The well has been drilled down to the depth of 2,350M as of April 09, 2018. Currently, wireline logs have been acquired, which are being interpreted.

��\/ ��=�)� ��&��4 ��]"!!�$��*��*��$�#!��*��V#!��'!!� ��!��[��#!�$=�+��'!!�is planned to be drilled in SML formation with the targeted depth of 1,200M. POs for the LLIs have been planned and the delivery is expected in fourth quarter of 2018.

[��4 ��Ghauri X-1 well is currently producing around 384 BOPD with the cumulative production of 794,000 barrels.

[;[�&��Based on interpretation of 456 sq.km 3D seismic data, two prospects, Dharian and Miraj-1 have been ��!��$��[��[��$��!!��*=�

�\/ ��=�)� ��<KSecond exploratory well Dharian-1 in Ghauri Block was spud-in on December 21, 2017. It has been drilled down to 4,188 M as of April 16, 2018 with a targeted vertical depth of ±4,900M to test the hydrocarbon potential of multiple reservoir rocks from Cambrian to Eocene Age. Estimated well cost is USD 23.7 million. The well is planned to be drilled, tested and completed in 293 days. A number of formations shall be tested during DST including Sakesar, Khewra, Lower Part of Murree, Chorgali, Lockhart, Tobra and Kussak, with primary target as Sakesar and Khewra. Drilling of two sections of wells i.e. 26” & 17 ½” hole have been completed and currently drilling of third section of 12 1/4” is in progress.

�\/ ��=�)� ��^<K�?��/��@��Third exploratory well Miraj-1 (Harno Prospect) in Ghauri Block has been planned to be drilled back to back after Dharian-1. Well designing and planning has been completed. Procurement of LLIs is in progress. Rig Mari 3 will be mobilized to Well Miraj-1 after completion of works at Dharian-1 Well. Location of exploratory well Miraj-1 has been stacked on ground on March 1, 2018 to test the hydrocarbon potential of multiple reservoirs from Eocene to Cambrian Age rocks down to the depth of ±5,500M. Miraj-1 is expected to be spud-in during the year 2018-19.

&�^�>� �4 ��

��G��&�^�>� ��;��Sujawal X-1 and Aqeeq-1 wells are in normal production through front end Compression support while


Sujjal-1 is operating naturally. In order to drain the Sujjal-1 well with early revenues generation, compressor installation at Sujjal-1 shall become inevitable by next year in order to arrest the declining gas production. Accordingly, case has been initiated for the procurement of compressor to be installed at Sujjal wellhead. +��!�#��#��!��[��!!$��##!��$��'��#��#��!��$��!��#��*��=�+��!��$��!� ��'��#��#��!��!!�[��!��$�[��$��~#��!��]��=� �� #�� mention here that placement of compressor package at wellhead is being targeted to achieve maximum recovery from the reservoir.

��>��4 ��Way forward on the block is being discussed between JV Partners due to non-issuance of NOC/Security Clearance by the Security authorities.

4��)��4 ��

[;[�&��MPCL is undertaking exploration activities aggressively in the block after transfer of operatorship w.e.f. ��]��]��=� �� $�[��#!��'��'�� #��$=�Maintaining same pace of work, acquisition of limited 99 Line km 2D seismic data has also been completed on April 3, 2018 with very good daily average recording of 3.4 Line km despite of all challenges. It is located in highly security sensitive area of Zarb-e-Azab Operation conducted by the Security Authorities. Further, rugged and high mountainous terrain made it more challenging for undertaking such sophisticated seismic survey. The hot-shot processing at Mari Seismic Processing Centre (MSPC) is being undertaken. It is a very useful technique which is adopted by almost all multinational companies which not only helps in seismic !��#!��$X��$��#��*��#��*��[��!��[��!��;��$��of leads/prospects. Bannu West Joint Venture has planned to acquire mega 3D of 850 Sq. km against second year work commitment of 150 sq. km 3D seismic data. 3D seismic data parameter testing is expected shortly followed [��;��=�+��;��$�$��'�!!�[�#��$��$��#��$��$��!��#��$��$�!�$��$��#!��V#!��'!!��[��=

��\/ ��=�)� ��4��)��4 ��"!!�$��*��*��$�#!��*��V#!��'!!��"��!��[��#!�$�'��targeted well depth of 5,990M. Lockhart, Lumshiwal, Samana Suk and Datta formations are planned to be tested after the completion of drilling works. Procurement of LLIs is in progress and the well is planned to be spud-in by April-May 2019.

$�$<��!��4��#�&

�� 4 ��

[;[�&��Based on the interpretation of newly reprocessed 525 sq. km 3D seismic data coupled with seismic inversion ��$��$��*��!�[!�}�}�$��!��V��V#!��'!!��[��!��$�to be followed by civil works to spud-in the well during June-July 2018.

Qamar X-1��V��V#!��'!!��!��!��[��!��$��$��#�$��'!!��V#��$�$��*��$�of June 2018 or early July 2018 to test the hydrocarbon potential of Lower Goru Massive sands.


�� 4 ��

[;[�&��$��;�� ]��$��>=?��*��$��$��[��26, 2017. Three vendors i.e. M/s BGP, M/s Senshe and M/s Sino Geophysical have submitted their bids. Currently, bid evaluation is in progress.

��4 ��

[;[�&��Advance Reprocessing of ~319 sq. km 3D and ~240 Line km 2D seismic data is in progress at M/s GRI ��=� ��!� ��+�� $�� [�� $=� ��#�� '�!!� [� ��$� �� [�;�� !�#��*��#��!��!��V#!��'!!��'��=

&��4��4 ��

�\/ ��=�)� �4��*<K�� V#!�� '!!� �� $�� [!�� [�� $� �� *��$=� ��!� '�� currently in progress and expected spud-in by May 2018 to test the hydrocarbon potential of Lower Goru Sands down to the depth of ±3776M MD.

�*��!��$��!��&��*��$&��$`��#��;��$!��$�!��$��MPCL is consistently reviewing the data of exploration blocks of different E&P Companies for possible farm-in opportunities or operatorship to enhance exploration portfolios to further augment the reserve lead growth strategy. In this regard, following is being undertaken:• 4� ��)��4 ��

��#�$��%��;��?_�'��*��!��"��!��subject to its BOD approval along with signing a side letter whereby notwithstanding the JOA voting pass marks, PPL shall mandatorily obtain MPCL’s approval in all OCM matters/decisions.

• ��4 ��*�$��;��+�!!�'%��#��[��^� = _`��#��#��~��!��= ��Kohat PCA and Article 13.1 of Joint Operating Agreement for which Board of Directors has granted approval.

• ��<&�^�>� ��6<��6<��*�$��_��!��!��*�'��*��*��$�!��'��[��notwithstanding the JOA voting pass marks, PPL shall mandatorily obtain MPCL’s approval in all OCM ��$��=��'�!!�� ?_��X�'�!�[!��[X��approval of respective Board of Directors.

• Tullow has submitted Assignment Agreement to DGPC for its approval to assign entire working ��"��!��^�]_`��!��^>?_`��$��!��!��^ ]_`��=

Joint biddingDifferent E&P companies (local and multinationals) are being perused for joint bidding in the upcoming bidding round subject to prospectivity and necessary approvals.


MPCL has signed MOU for strategic cooperation with the following E&P companies:• MOL• KUFPEC• PGNiG

�� 4 ��5#��MPCL is also continuously evaluating selected International Blocks/Countries for possible farm-in opportunities. Currently, blocks offered in following countries by different E&P Companies are being reviewed:• Kenya (Block 10BA) and Surinam (Block47) offered by Tullow• Cuba offered by Melbana (an Australian Company)• Morocco Blocks• Sri Lanka

��&��(�#�&��(�&��$�?�&�@MSD is well poised to cater for growing services requirements, consisting of state of the art technology drilling rigs, 2D/3D seismic data acquisition unit, 2D/3D seismic data processing unit along with AVO ��[��*�'��!$��!��;��!��#��!��!�!$��$��$�=

��&��6��"��?�&"@MSU has successfully acquired 2D data in the challenging terrain of Sukkur exploration license during August to December 2017. MSU mobilized to acquire 2D followed by 3D seismic data acquisition in Bannu West Exploration License. Mobilization completed in January 2018, after which acquisition of 2D Seismic data (Phase 1) has commenced.

�� D�"��?��"@Rig Mari 1 (1500HP) spud Azadi-1 well on September 30, 2017 and completed the well to target depth of 2995M. Rig Mari 1 was released from Azadi-1 well on November 30, 2017 and started mobilization to Bhitai-5 on December 1, 2017 which was completed on December 4, 2017. Spud-in of Bhitai-5 development well commenced on December 11, 2017 with Rig Mari 1 (1500HP) and well was completed to target depth of 1180M. <�*��[�!��$��?� ��V#!��'!!� ��!��=��Exploration well was spud-in on March 16, 2018. Currently drilling is in progress. Rig Mari 3 (2500HP) was under rig up as of July 1, 2017 at Tipu-1 Exploration site. The well was spud-in ��{�!��?��]��$��'!!�'��#!�$��[��]��=�+��*�'��[�!��$��'��December 2017 from Mari D&P Lease to Ghauri block.Spud-in of Dharian-1 Exploration well commenced on December 21, 2017 with Rig Mari 3 (2500HP). Currently drilling is in progress.

��&��6��D�#��?�&�#@MSPC is currently processing around 2,700 Line km Time processing of seismic data from Sukkur Block and 1080 sq. km of 3D depth imaging of seismic data from Mari D&P Lease. MSPC completed Pre stack $��X�'�!� ��$��*��'��]��=��'�� commenced on March 26, 2018.


CORPORATE SOCIAL RESPONSIBILITY (CSR)��*� �� ;�� ]�� <� ��*�� $� ��$� �� [�!�� $� ��delivery, instead of brick and mortar approach. Establishment of specialist’s medical camps (Sujawal, Halini, Ghauri, Dilwani and Daharki) has been widely appreciated / acknowledged by local district administration and community alike.

CSR Budget (FY 2017- 2018)As per PCA, total budget allocation for social welfare schemes in the Company’s operated JV blocks during FY 2017-18 is Rs. 29.50 million which has been deposited in the respective Joint Accounts. Moreover, Rs 69.40 million has been deposited into the Joint Accounts as Social Welfare Obligations (SWOs) for the year 2018. Annual CSR Budget for Mari Field is Rs. 112 million and Rs. 40 million has been allocated for other ��*��#��X��!��[�$=

#&��j(�4 ��//��G��5��/��^��j(�4 ��The new guidelines issued by the DGPC on Social Welfare Obligations in February, 2017, leave minimal space for the two main stakeholders, i.e., the company and the local government & communities in planning and execution of the Social Welfare Schemes. However, in close collaboration with local DCs, MPCL CSR teams have been able to convene Social Welfare Committee meetings at various locations and identify new projects in line with the new guidelines.Karak Block:Three projects worth Rs. 4.7 million have been approved and are under implementation phase.• Water Supply Scheme Chashmee Bangi Khail , Tabisar • Repair of Water Supply Scheme Tola Bangi Khail• Water Supply Scheme Parshoo , Tehsil Esa Khail , District Mianwali Ghauri Block:Recommended CSR Schemes worth Rs. 9.5 million are listed as under, awaiting approval from the DC Rawalpindi / SW Committee:• Water Supply Scheme Bhallot • Science cum computer lab with equipment, four toilets and sports ground at Govt. Girls Elementary

School Jandh MehluRecommended CSR Scheme for District Jhelum is Water Supply Scheme for Village Pothi / Geedaraam, awaiting approval from the DC Jhelum / SW Committee.

��^��"�� J��4��Production Bonus of amount Rs. 177 million (Approx.) has been deposited in the joint accounts as per the below mentioned details:• Sujawal / Badin - $600,000 (July 2016) (Rs. 62.70 million)

(Note: 15 Projects approved by PSDC Sujawal, worth Rs. 52.21 million)• Karak / Mianwali - $600,000 (June 2017) (Rs. 62.82 million)

(Note: 12 Projects approved by PSDC Mianwali, worth Rs. 44.60 million)• Bolan / Zarghun - $500,000 (October 2014) (Rs. 51.35 million)

(Note: 11 Projects approved by PSDC Zarghun, worth Rs. 38.82 million)


Projects as proposed and approved in the respective Petroleum Social Development Committee (PSDC) meetings held in the last quarter of 2017, will be implemented by the respective DCs.

�� 4��D��?�%�QVKq<Kw@�� ]�KKQ�6� ��• Recurring budget: Rs. 87 million• New Projects: Rs. 25 million

��D��^��• Three mobile dispensaries• Maternity Home (Dad Leghari)• Dispensary at Well No 8• TB Clinic (Well No 8)• Mari Education and Medical Complex (MEMC)

(Note: Mari Education Complex is being run by TCF, for which a cheque of Rs. 4.8 million has been handed over for Operational Support for Year 2017-18)

• Provision of vehicle to Health Department during Polio campaign• Mari Special Education School• Operational expenditures of schools (at Well No 8, Lohi Pull and Khirohi)• Supply of drinking water through water bowsers• MPCL IBA Sukkur Scholarship Program: Payment of Rs. 750,000 for Fall 2017 Semester has been

handed over to IBA Sukkur • Health Management Information System (HMIS)• Mari Early Education Tool (MEET) being implemented at Shaheen Public School• Specialists Medical Camps

$�>��^��<�#��&/�� #�� &�� • A consultant NGO Special Talent Exchange Program (STEP) is taken on board for leading the project

and preparing a feasibility study.• STEP is an Islamabad based NGO that specializes in the provision of quality education and services

to the differently-abled children, preparing them for the inclusion in the mainstream society.• A team led by Mr. Atif (ED STEP) and Architect Firm (PEPAC) visited Daharki Field to assess the

scope and requirements of the project that will help STEP prepare a comprehensive proposal / feasibility of the project.

• The construction site has been approved. • MoU has been signed on March 15, 2018. The construction is expected to start from May 01, 2018.

The School will be operational from July 01, 2019.

Over and Above CSR Obligations

MPCL Youth Tennis Sponsorship Program• MPCL has been sponsoring sports / players in the past as part of its Corporate Social Responsibility.


MPCL has now sponsored two rising Junior Tennis Players (Huzaifa Abdul Rehman - Aged 15 and Mahin Aftab – aged 15) to undergo International trainings, and also to participate in the ITF Junior Circuit.

• Total Sponsorship Cost of both players is Rs. 8.7 million for one year.

• Second tranche of payment (Rs. 3.8 million) was handed over to the guardians of both players on December 29, 2017. This payment will cover the expenses for the next 6 months i.e., Jan-June 2018.

• In the past six months, both players have performed exceptionally well, representing Pakistan and MPCL in National and International Tennis Circuit.

j��$�� =�� =��Financial assistance to Pakistan Junior Hockey Team (six players) – (Rs. 300,000 per month).

Golf ChampionshipSponsorship of All Pakistan Open Golf Championship 2017 – (Rs 1.21 million).

� ��#��63��;�#�66��#��+�[�>��?��QVKw@Sponsorship of All Pakistan Chambers & Commerce Conference held at Gawadar - (Rs 1.50 million).

MPCL Summer Internship Program 2017 74 students from various universities across Pakistan were offered summer internships at MPCL Field ��$��$��=��'��V�'��#�#��*��'��$��'��V#��$��real-time challenges.

Rehabilitation of Marghazar Zoo, Islamabad• MPCL Management was approached by CDA for the said project in November 2017.

• After round of discussions with CDA, the Management has approved Rs. 18.9 million for rehabilitation work to be carried out under this project.

• The project initiation is delayed due to CDA’s management approval process.

• MPCL management held a meeting with Chairman CDA on March 07, 2018, who assured of expediting the necessary approvals at their end.

&/�� #�6/�

Field Month ��/�� Patients Treated

HaliniDecember 2017 Gynae Specialist Camp 2,475

August 2017 Eye Specialist Camp 1,893

Ghauri

March 2018 Gynae & Child Specialist Camp 172January 2018 ENT Specialist Camp 97

December 2017 Eye Specialist Camp 202October 2017 Child Specialist Camp 85

November 2017 Gynae Specialist Camp 125


Field Month ��/�� Patients Treated

ZarghunJanuary 2018 Child Specialist Camp 258October 2017 Eye & Gynae Specialist Camp 365

Eye operation of female student Ms. Usmania (from Zarghun) at CMH Quetta (2018)

SujawalFebruary 2018 Child & Gynae Specialist Camp 126

November 2017 Eye & Gynae Specialist Camp 76Mari Field 3-Days (5-7 Mar 2018) Specialist Medical Camp (Hepatitis B,

Hepatitis C, Blood Sugar, HBA1c, BMD (Bone mas density), Eye Cataract and OPD

4,853

ISO 26000 Assessment

• ��]]]�~��'��!��$��$�� ]��|��]��$��Mari Field Daharki and Sujawal and on Dec 16, 2017 at Ghauri. Previous assessment was carried out in the year 2015, in which the Company was placed at “Intermediate” Level.

• In the ISO 26000 Assessment 2017, MPCL has been placed at “ADVANCED” Level of performance against global guidelines of ISO 26000:2010. Furthermore, it is pertinent to note that “Role Model” Level (the highest rating) can only be achieved if “Role Model” is attained in all respective domains / ��$��$��]]]�^�==��<��<��$��!$��#��`=

• MPCL is the only Oil & Gas Company in Pakistan to be formally assessed for ISO 26000 – CSR guidelines and hence, the only Company to achieve the advanced level rating.

�#�$�)��[��$!The Board of Directors would like to express its appreciation for the efforts and dedication of all employees ��#��'��[!$��*��#��!��$��*��#��$��!��*�in continued production and supply of hydrocarbons to its customers.

For and on behalf of the Board

IslamabadApril 16, 2018

Lt Gen Ishfaq Nadeem Ahmad, HI (M), (Retd)Managing Director / CEO

Qaiser JavedDirector


Muhammad Asif[�� D��5�#��

#�$��$&��$!��&!�!��$!��$�$#��&�!��$�?"$<�"��!��@AS AT MARCH 31, 2018

��[��9�$��6��6��+��?�@+�?��@��D��D��5�#��

Un-Audited AuditedNote WK]VW]QVKw 30.06.2017

(Rupees in thousand)��"�!%��$��4��!��&

&��#��!��$��&��(�&�Authorized capital250,000,000 (June 30, 2017: 250,000,000) ordinary shares of Rs 10 each 2,500,000 2,500,000 1,059,000,100 (June 30, 2017: 1,059,000,100) preference shares of Rs 10 each 10,590,001 10,590,001

13,090,001 13,090,001

Issued, subscribed and paid up capital 5 1,102,500 1,102,500 Undistributed percentage return reserve 6 392,691 496,436 Other reserves 7 11,190,001 11,190,001 ��$�!�� 8 23,008,286 12,748,733

35,693,478 25,537,670

NON CURRENT LIABILITIES��*��* 9 2,909,091 4,172,727 Deferred liabilities 10 8,174,065 7,483,812

11,083,156 11,656,539

CURRENT LIABILITIESTrade and other payables 11 85,044,482 55,191,169 ��!��*��* 847,486 955,037 Provision for income tax 1,488,926 - ��$��!��*��* 305,360 254,552

87,686,254 56,400,758 #�$!�$[�$#��&��$��#��!��$!&� 12

134,462,888 93,594,967

+��V$�� *��!�#��$��$��!��=� � �


#�$��$&��$!��&!�!��$!��$�$#��&�!��$�?"$<�"��!��@AS AT MARCH 31, 2018

Qaiser Javed��

Un-Audited AuditedNote WK]VW]QVKw 30.06.2017

(Rupees in thousand)

ASSETS

NON CURRENT ASSETS

Property, plant and equipment 13 12,366,344 12,688,670 Development and production assets 14 11,702,752 7,409,878 Exploration and evaluation assets 15 2,364,779 5,972,108 Long term loans, advances, deposits and prepayments 115,569 58,235 Deferred income tax asset 1,975,627 2,162,308

28,525,071 28,291,199

CURRENT ASSETS

Stores and spares 969,199 1,015,000 Trade debts 16 84,596,589 54,426,085 Loans, advances, prepayments and other receivables 17 3,286,501 1,792,572 Short term investments 18 9,324,438 3,604,596 Income tax paid in advance - 1,142,319 Cash and bank balances 19 7,761,090 3,323,196

105,937,817 65,303,768

134,462,888 93,594,967


#�$��$&��$!��&!�!��$!��!��&&�?"$<�"��!��@��!��$�$��$!�&��$��#��WK+�QVKw

Qaiser Javed��

��[��9�$��6��6��+��?�@+�?��@��D��D��5�#��


Three months ended Nine months endedNote WK]VW]QVKw 31.03.2017 WK]VW]QVKw 31.03.2017

(Rupees in thousand) (Rupees in thousand)Gross sales to customers 20 24,778,078 24,314,373 72,367,929 74,137,485

Gas development surcharge 2,220,881 5,285,990 8,448,520 17,663,063 General sales tax 2,895,477 3,434,955 8,492,926 10,511,901 Excise duty 478,390 453,570 1,417,574 1,343,605 Gas infrastructure development cess 8,608,643 8,333,432 25,417,238 24,752,981

14,203,391 17,507,947 43,776,258 54,271,550 Sales - net 10,574,687 6,806,426 28,591,671 19,865,935

Royalty 1,349,943 894,300 3,638,383 2,527,530 9,224,744 5,912,126 24,953,288 17,338,405

Operating expenses 21 2,325,898 1,615,494 6,987,848 5,129,241 Exploration and prospecting expenditure 22 281,621 1,667,386 1,637,366 2,565,322 Other charges 409,432 133,123 1,069,637 538,044

3,016,951 3,416,003 9,694,851 8,232,607 6,207,793 2,496,123 15,258,437 9,105,798

Other income / (expenses) 23 (269,102) (301,974) 38,990 (421,848)�#��*�#�� 5,938,691 2,194,149 15,297,427 8,683,950

Finance income 24 185,317 62,514 489,057 141,989 Finance cost 25 177,437 204,021 786,046 610,389 ��[��V�� 5,946,571 2,052,642 15,000,438 8,215,550 Provision for taxation 26 1,977,756 357,844 4,216,205 1,908,633

��#��$ 3,968,815 1,694,798 10,784,233 6,306,917

��D��/��<�3�� Earnings per ordinary share (Rupees) 27 �W�]VV� 15.37 ��q]wQ� 57.21

Distributable earnings per ordinary share (Rupees) 27 �K]�W� 1.50 �Y]q�� 4.43

+��V$�� *��!�#��$��$��!��=


#�$��$&��$!��&!�!��$!��!��#��$&�(��$#��?"$<�"��!��@��!��$�$��$!�&��$��#��WK+�QVKw

Qaiser Javed��

��[��9�$��6��6��+��?�@+�?��@��D��D��5�#��


Three months ended Nine months endedWK]VW]QVKw 31.03.2017 WK]VW]QVKw 31.03.2017

(Rupees in thousand) (Rupees in thousand)

��#��$ 3,968,815 1,694,798 10,784,233 6,306,917

Other comprehensive income - - - -

Total comprehensive income for the period 3,968,815 1,694,798 10,784,233 6,306,917

+��V$�� *��!�#��$��$��!��=


#�$��$&��$!��&!�!��$!��#�&��)&�?"$<�"��!��@��!��$�$��$!�&��$��#��WK+�QVKw

Qaiser Javed��

��[��9�$��6��6��+��?�@+�?��@��D��D��5�#��


Note WK]VW]QVKw 31.03.2017(Rupees in thousand)

#��>��6��/��D��G��Cash receipts from customers 42,202,824 55,978,736 Cash paid to the Government for Government levies (19,191,515) (42,147,744)Cash paid to suppliers, employees and others (6,867,638) (8,094,984)Income tax paid (1,398,279) (1,028,206)

|��'��#��*�� 14,745,392 4,707,802 #��>��6��G��D��G��

Capital expenditure (3,008,023) (2,909,090)Proceeds from disposal of property, plant and equipment 13,226 360 Interest received 468,129 131,630

|��'��*�� (2,526,668) (2,777,100)

#��>��6��D��G��*��*��$ - 4,000,000 Long term loans repaid (1,363,636) - Redemption of preference shares (7,551) (21,941)Finance cost paid (150,712) (45,846)Dividends paid (539,089) (556,461)

|��'��*�� (2,060,988) 3,375,752

$��9��G� �� 10,157,736 5,306,454

Cash and cash equivalents at beginning of the period 6,927,792 626,154

Cash and cash equivalents at end of the period 28 17,085,528 5,932,608

+��V$�� *��!�#��$��$��!��=� � � �


#�$��$&��$!��&!�!��$!��#��$[�&��$��"�!%�?"$<�"��!��@��!��$�$��$!�&��$��#��WK+�QVKw

Qaiser Javed��

��[��9�$��6��6��+��?�@+�?��@��D��D��5�#��


Other ReservesIssued,

��3��3��and paid up

�/��

Undistributed /��D��

return reserve

Capital

redemption reserve fund

Self ��Reserve

��and loss �� Total


4� ��j��WV+�QVK��?��@ 1,102,500 426,867 10,590,001 100,000 4,746,555 16,965,923

Total comprehensive income for the period:��#��$ - - - - 6,306,917 6,306,917 Other comprehensive income - - - - - -

- - - - 6,306,917 6,306,917 Final dividend for the year ended June 30, 2016 @ Rs 2.10 per share * - (112,234) - - (119,291) (231,525)First interim dividend for the year ended June 30, 2017 @ Rs 3 per share * - - - - (330,750) (330,750)

4� ��WK+�QVKq�?"�<��@ 1,102,500 314,633 10,590,001 100,000 10,603,431 22,710,565

Total comprehensive income for the period:��#��$ - - - - 2,829,277 2,829,277 Other comprehensive loss - - - - (2,172) (2,172)

- - - - 2,827,105 2,827,105 +��#��$�!��$��[��$�#��*�� - 181,803 - - (181,803) - +��#��$�!��!�� - - - 500,000 (500,000) -

- - - - - - 4� ��j��WV+�QVKq�?��@ 1,102,500 496,436 10,590,001 600,000 12,748,733 25,537,670

Total comprehensive income for the period:��#��$ - - - - 10,784,233 10,784,233 Other comprehensive income - - - - - -

- - - - 10,784,233 10,784,233 Final dividend for the year ended June 30, 2017 @ Rs 2.20 per share * - note 6.1 - (103,745) - - (138,805) (242,550)First interim dividend for the year ending June 30, 2018 @ Rs 3.50 per share * - - - - (385,875) (385,875)

4� ��WK+�QVKw�?"�<��@ 1,102,500 392,691 10,590,001 600,000 23,008,286 35,693,478

* Distribution to owners - recorded directly in equity

+��V$�� *��!�#��$��$��!��=�


$�!�&�!��!��#�$��$&��$!��$�$#��&!�!��$!&�?"$<�"��!��@��!��$�$��$!�&��$��#��WK+�QVKwK] ��[��&!�!"&��$��!��$&

Mari Petroleum Company Limited (“the Company”) is a public limited company incorporated in Pakistan on December 4, 1984 under the Companies Ordinance, 1984 (now replaced with Companies Act, 2017). The shares of the Company are listed on the Pakistan Stock Exchange Limited. The Company is principally engaged in exploration, production and ��!��$��[��=�+��*��$��#��$��~�� $�<��$��}��]��!��[�$=

Q] STATEMENT OF COMPLIANCE

+��$��$��!��#��$$�� ]��[��#�#��$� �� $�� '�� *� ��$� �#��*� ��$��$�� ##!��[!� �� !��#��*=�+��*��$� �#��*��$��$��##!��[!� �� !� �#��*��#��of International Accounting Standard (IAS) 34, “Interim Financial Reporting”, issued by the International Accounting ��$��$��$�^�~��`��$��$��#��~��]��$�#��$�$��$��$��Companies Act, 2017. Where the provisions of and directives issued under the Companies Act, 2017 differ with the requirements of IAS 34, the provisions of and directives issued under the Companies Act, 2017 have been followed. +��$��$� ��!��!$�[� ��$� ��X��'�� !�� ended June 30, 2017, which have been prepared in accordance with approved accounting standards as applicable in Pakistan.

W] ACCOUNTING POLICIES

+��*�#�!��$��$��#��$�#�$��#�#��$��$��!��##!�$��#�#��!��$$�{�� ]��2017, except for the adoption of new and amended standards which became applicable for the current reporting period. +��$�#�� $��$��$��!� ��#�� $��$� ��!� ��#��$�$��!��!��$��!��!��$��*�{�� ]��]��=

Y] ��(�&��$��$��)��[�&��#��"��

+��#��*��#��!$�'��*��$�[��}��"!!��$��~*��^¡��~*�-ment”) dated December 22, 1985 between the President of Islamic Republic of Pakistan and the Company. Effective July 1, 2014, the Agreement has been replaced with revised Mari Wellhead Gas Price Agreement (2015) (“Revised Agreement”) dated July 29, 2015 in line with the Economic Coordination Committee (ECC) decision explained below: Effective July 1, 2014, the cost plus wellhead gas pricing formula was replaced with a crude oil price linked formula which #��$��$��$�'!!��$�*��#��[�*��$��!!��$��{�!��]��=��!$�'!!��$�gas price for the year has been determined in line with the revised formula as approved by ECC. The revised formula provides dividend distribution to be continued for next ten years in line with the previous cost plus formula. Accordingly, ��!$��!$�� ]_��!!��V��!$��%��$��'��[��!��-ed in the event of increase in the Company’s gas or equivalent oil production beyond the level of 425 MMSCFD at the ��_��!!��V��!$�%��$��$$��!��]��*��;��!��!�#��$��$��#��$��#��!�[��[X��V��?_=�~��$��!�#��V��[��$��V#!��$�$!�#��!$��'!!��$��!$=


(Un-Audited) (Audited)Note WK]VW]QVKw 30.06.2017

(Rupees in thousand)M] �&&"��+�&"4&#��4��$��"��#��!��

24,850,007 (June 30, 2017: 24,850,007) ordinary shares of Rs 10 each issued for cash 248,500 248,500 11,899,993 (June 30, 2017: 11,899,993) ordinary shares of Rs 10 each issued for consideration other than cash 119,000 119,000 73,500,000 (June 30, 2017: 73,500,000) ordinary shares of Rs 10 each issued as bonus shares M]K 735,000 735,000

1,102,500 1,102,500

M]K As at March 31, 2018, 608,364 (June 30, 2017: 608,364) bonus shares have not been issued pending resolution of issue relating to deduction of withholding tax on issuance of bonus shares.

�] "$��&!��4"!��#�$!�[��!"�$��&��(�

(Un-Audited) (Audited)Nine months ended Year ended


Opening balance 496,436 426,867 +��$��#��$�!�� - 181,803 Final dividend:

for the year ended June 30, 2017 �]K (103,745) - for the year ended June 30, 2016 - (112,234)

Closing balance 392,691 496,436

�]K +��$��*��!$��{�!��]��$�#��#��$��!��$��$�$��$$�{�� ]��2017 @ Rs 2.20 per share amounting to Rs 242.550 million, which was subsequently approved by the shareholders in Annu-al General Meeting held on September 26, 2017. Out of this, Rs 103.745 million has been appropriated out of undistributed percentage return reserve while the balance amount of Rs 138.805 million represents undistributed guaranteed return for the year ended June 30, 2017.

�]Q The amount held in this reserve represents the balance of the percentage return reserve on Shareholders’ Funds as referred to in the Revised Agreement.


q] �!��&��(�& (Rupees in thousand)

Capital redemption reserve fund q]K 10,590,001 10,590,001 Self insurance reserve q]Q 600,000 600,000

11,190,001 11,190,001


q]K Capital Redemption Reserve FundThis reserve was created for redemption of redeemable preference shares in the form of cash to the preference shareholders.

q]Q &� ��G�+��#��$��#��!��*��!��!��$�#��!��$��#��!=

w] ��!��$��&&��##�"$! (Un-Audited) (Audited)Note WK]VW]QVKw 30.06.2017

(Rupees in thousand)Undistributed return w]K 141,774 138,805 Unappropriated balance 22,866,512 12,609,928

23,008,286 12,748,733

w]K +��#��[�!��*��$��\��=]]_�#��!$��%��$��$$�� ]��^�� ]��\��=??_`��#��*��$��$�$��$��*�{�� ]��]��\�<�� =?]�#��share amounting to Rs 385.875 million.


�] LONG TERM FINANCING (Rupees in thousand)

Redeemable preference shares - unsecured �]K - - Long term loans - secured �]Q 2,909,091 4,172,727

2,909,091 4,172,727

�]K ��6�3 ��/��<��Non-voting, non-cumulative redeemable preference shares 120,213 127,764 Current maturity (120,213) (127,764)

- -

As at March 31, 2018: 5,335,946 preference shares (June 30, 2017: 5,335,946) have not been issued pending resolution of issue relating to deduction of withholding tax on issuance of bonus shares. Further, 6,685,403 preference shares (June 30, 2017: 7,440,495) have not been claimed / redeemed by certain minority shareholders.



�]Q ��D��6� ��<�� >� � �]Q]KOpening balance 1,000,000 1,000,000 Amount repaid during the period / year (1,000,000) -

- 1,000,000

Current maturity of long term loans - (100,000)

- 900,000 ��\/ ��G� �/6��/��^�� ]Q]QOpening balance 4,000,000 - Amount received during the period / year - 4,000,000 Amount repaid during the period / year (363,636) -

3,636,364 4,000,000 Current maturity of long term loans (727,273) (727,273)

2,909,091 3,272,727

Long term loans - secured 2,909,091 4,172,727

Current maturity of long term loans 727,273 827,273


�]Q]K ��*��!��*��<��]]]��!!��'��!$��$��*��!!�'!!��D&P Lease Area (Habib Rahi Limestone Reservoir). The entire amount of facility was drawn on December 31, 2015. Mark-up for ��$�!��'��#��$��!!��$��*��!��V��<�¢�]=�?_�#��=�+��#��'��$�$�'�'��$��V��<�¢�]=�]_�#��[�� ]��=�+��#��#��$��$$�� ]��'��=��_�^{�� ]��]��£��=� _`�#��=�+��!��'��#��[!��;��!��!��!��'��*��#��$��$��$��[��=��'��!!��$��*�loan was prepaid on November 30, 2017 and the Company has also vacated security charge against the loan.

�]Q]Q ��*� �� !�� *� �� <�� >�]]]� ��!!�� [�� !$� �� [�[� �� $� �� *� V#!�� $�$!�#��!�#��X��[��$��!$��[!��=�~��<��]]]��!!��[��!$��!��#�� ]��=��#��#��[!��!!��$��*��!��V��<�¢�]=]?_�#��=�+��#��#��$��$$�� ]��'��=��_�^{�� ]��]��£��=��_`�#��=�+��!��#��[!��!��;��!��!��!��V��*��#��$��$��$��[��=�+��!��$�[��#��#��#��*��$��*��*��!!�#��$��[!��$��V$��̂ V�!�$��*�!��$��$�[��!$��*��petroleum reconnaissance and exploration licenses and development leases) of the Company amounting to Rs 12,000 million.

(Un-Audited) (Audited) WK]VW]QVKw 30.06.2017

(Rupees in thousand)KV] ��4��!��&

Provision for decommissioning cost 7,404,774 6,741,532 ��#!��[��$$ 528,224 506,794 Provision for compensated leave absences 236,167 207,195 Deferred income 4,900 28,291

8,174,065 7,483,812

KK] !��$��!��%�4��&Creditors 1,205,434 782,016 Accrued liabilities 2,595,818 2,591,509 Joint operating partners 1,294,857 1,143,668 Retention and earnest money deposits 50,173 61,644 Gratuity funds 146,290 180,733 Gas development surcharge 5,904,921 4,701,334 General sales tax 5,781,955 3,890,996 Excise duty 165,094 158,484 Gas Infrastructure Development Cess (GIDC) 65,266,581 40,329,433 Royalty 338,526 153,704 Workers’ Welfare Fund 1,316,598 1,109,854 "��%��#��$� 862,892 61,787 Unclaimed dividend 16,881 17,274 Unpaid dividend 98,462 8,733

85,044,482 55,191,169

KQ] #�$!�$[�$#��&��$��#��!��$!&KQ]K Contingencies

Indemnity bonds given to Collector of Customs against duty concessions on import of vehicles amounted to Rs. 5.23 million was outstanding as at June 30, 2017. In the current period, indemnity bonds were cancelled by the Collector of Customs upon surrender of vehicles / payment of custom duties.

(Un-Audited) (Audited) WK]VW]QVKw 30.06.2017

(Rupees in thousand)KQ]Q Commitments

Capital expenditure:Share in joint operations 4,338,444 4,961,303 ��!$��$�<�*�� 1,725,040 1,443,039

6,063,484 6,404,342



WK]VW]QVKw 30.06.2017(Rupees in thousand)

KW] ��!%+��$!��$��"��$!Opening book value 10,341,416 10,309,547 Movement during the period / year:Additions 162,131 1,004,885 Tangible assets transferred from exploration and evaluation assets 26,642 484,619 Revision due to change in estimates of provision for decommissioning cost - (20,735)Written down value of disposals - (1,626)Depreciation charge (1,133,411) (1,435,274)

(944,638) 31,869 9,396,778 10,341,416

Add: Capital work in progress 1,126,636 703,867 Add: Stores and spares held for capital expenditure 1,842,930 1,643,387

Closing book value 12,366,344 12,688,670

KY] ��(��$!��$��"#!��$��&&�!&Opening book value 7,409,878 3,002,063 Movement during the period / year:Additions 1,329,334 1,408,770 Transfer from property, plant and equipment - 96,486 Transfer from exploration and evaluation assets 4,479,615 3,845,980 Revision due to change in estimates of provision for decommissioning cost - (196,555)Amortization charge (1,516,075) (746,866)

4,292,874 4,407,815


KM] �*��!��$��$��(��"�!��$��&&�!&

Opening book value 5,972,108 10,084,055 Movement during the period / year:Additions 1,099,615 2,364,373 Left over inventory transferred to stores and spares (97,949) (513,544)Transfer to development and production assets (4,479,615) (3,845,980)Tangible assets transferred to property, plant and equipment (26,642) (484,619)Revision due to change in estimates of provision for decommissioning cost - (8,371)Cost of dry and abandoned wells written off (102,738) (1,531,246)Depreciation charge - (92,560)

(3,607,329) (4,111,947)



(Un-Audited) (Audited) K�] !��4!&� WK]VW]QVKw 30.06.2017


��6�� /��<��D��Central Power Generation Company Limited 9,834,361 3,888,959 Foundation Power Company Daharki Limited 4,873,539 3,323,360 Fauji Fertilizer Company Limited 27,904,376 14,431,598 Sui Southern Gas Company Limited 927,288 1,235,478 Sui Northern Gas Pipelines Limited 863,552 406,141 Foundation Gas - 1,268

44,403,116 23,286,804 ��6��<��D��Engro Fertilizer Limited 8,066,311 4,908,487 Fatima Fertilizer Company Limited 31,135,699 25,035,199 Byco Petroleum Pakistan Limited 424,192 614,192 |��!�<��$ 47,862 36,518 ~��<��$ 410,093 349,215 ��<��$ 49,214 31,553 EGAS (Private) Limited 9,726 56,266 ��~��[�<��$ 20,994 21,316 Petrosin CNG (Private) Limited 29,382 86,535

84,596,589 54,426,085

K�]K Trade debts due from related parties are net of provision for doubtful debts amounting to Rs.238.00 million (June 30, 2017: Rs 238.00 million).

K�]Q Trade debts include Gas Infrastructure Development Cess (GIDC) withheld by customers amounting to Rs 61,075 million (June 30, 2017: Rs 38,420 million).

Kq] ��$&+��(�$#�&+��%��$!&��$��!��#��(�4��& (Un-Audited) (Audited) WK]VW]QVKw 30.06.2017

(Rupees in thousand)��6�� /��Interest accrued - Askari Bank Limited 29,954 4,515 ��6��Advances to employees, suppliers and others 1,653,038 608,813 Receivables from joint operating partners 1,351,812 1,031,252 Short term prepayments 178,957 65,697 Interest accrued 61,580 42,516 Others 11,160 39,779

3,286,501 1,792,572

Kw] &��!�!��$(�&!��$!&

Short term investments include Rs 2,124.44 million (June 30, 2017: Rs 700.00 million) held with Askari Bank Limited, a related #��*��?=��_�^{�� ]��]��£�?=�]_`�#��=�+��V��#��$��(June 30, 2017: 3 months).

K�] #�&��$��4�$��4��$#�&

Cash and bank balances include Rs 3,315.23 million (June 30, 2017: Rs 1,402.80 million) held with Askari Bank Limited, a �!��$�#��*��?=� _�^{�� ]��]��£�?= >_`�#��=


Three months ended Nine months endedNote WK]VW]QVKw 31.03.2017 WK]VW]QVKw 31.03.2017

(Rupees in thousand) (Rupees in thousand)QV] GROSS SALES TO CUSTOMERS

&� ��:Gas QV]K 24,082,501 23,639,271 70,416,038 72,330,253 Crude Oil QV]Q 557,322 567,459 1,604,761 1,549,193 ��:�Transportation charges 16,336 28,825 54,104 80,622

540,986 538,634 1,550,657 1,468,571 Condensate QV]W 157,353 132,201 389,475 328,013 ��:�Transportation charges 11,620 2,336 18,700 11,226

145,733 129,865 370,775 316,787 �>��6/�� 8,858 6,603 30,459 21,874

24,778,078 24,314,373 72,367,929 74,137,485

QV]K This represents sale of gas as per detail 3� �>: Mari Field 21,962,963 21,828,432 64,949,616 67,225,939 Sujawal block 1,310,193 1,201,646 2,998,369 3,602,441 ��*��!$ 321,145 276,265 891,791 516,485 Hala block 265,621 234,490 841,884 793,896 Karak block 211,728 66,077 698,512 129,101 Sukkur block 10,851 11,886 35,866 41,916 Kohat block - 20,475 - 20,475

24,082,501 23,639,271 70,416,038 72,330,253

QV]Q !��/�� /�� 3� �>: Karak block 490,400 511,641 1,422,255 1,370,966 Ghauri block 66,922 55,818 182,506 178,227

557,322 567,459 1,604,761 1,549,193

QV]W !��/�� /�� 3� �>: Mari Field 30,448 22,841 91,011 63,502 Sujawal block 108,186 94,773 254,950 229,887 Hala block 17,419 12,891 39,450 31,265 ��*��!$ 1,300 1,696 4,064 3,359

157,353 132,201 389,475 328,013

QV]Y ��!��*��!�$��!��X�'�!��*��!��[!��!$��$��#��!�#��;��$$�� ]��=�+��[��$X��*��!��#��!�'!!��$�#��[��!��$�Gas Regulatory Authority (OGRA).



(Rupees in thousand) (Rupees in thousand)QK] OPERATING EXPENSES

��!��'�*��$�[�� 979,015 784,320 2,876,482 2,605,338 ��#!��[�� 62,919 60,116 188,226 180,681 Rent, rates and taxes 33,812 32,551 142,556 103,568 Legal and professional services 7,534 10,819 21,162 22,012 Fuel, light, power and water 27,237 29,900 100,303 96,739 Maintenance and repairs 130,762 151,326 399,865 436,058 Insurance 11,786 10,134 35,797 40,382 Depreciation 235,348 232,112 718,449 690,734 Amortization 538,092 78,976 1,516,075 262,555 Employees medical and welfare 93,635 107,724 266,018 237,269 Field and other services 298,802 235,636 914,283 865,918 Travelling 25,753 20,592 70,654 64,624 Communications 4,478 7,014 17,018 16,819 Printing and stationery 1,390 2,879 14,612 14,038 ��##!�� 2,960 3,157 13,650 11,625 Technical software 27,648 22,655 39,652 47,351 Auditor’s remuneration and tax services 2 4,164 683 5,526 Mobile dispensary and social welfare 28,001 35,743 95,691 114,808 Training 23,197 34,424 111,464 74,088 Advertisement 3,650 1,819 11,085 3,413 Books and periodicals 201 166 691 497 Public relations and social activities 4,690 1,952 13,556 9,242 Reservoir Study and Production Logging (3,423) 7,940 3,025 7,940 Seismic processing / re-processing 12,503 - 12,503 - Directors’ fee and expenses 2,143 1,580 7,394 7,085 Freight and transportation 4,730 4,872 10,701 10,654 Subscriptions 1,675 67 9,724 7,235 Reversal of provision for doubtful debts - - - (23,614)Miscellaneous 28,248 31,422 50,068 48,629

2,586,788 1,914,060 7,661,387 5,961,214

Less: Recoveries from joint operating partners 260,890 298,566 673,539 831,973 2,325,898 1,615,494 6,987,848 5,129,241

�/��D��\/�� 3 ��<>��\/��-�� >�:Karak block 80,153 77,559 274,146 236,691 Sujawal block 107,836 9,482 274,573 210,634 Hala block 71,379 48,375 208,530 178,869 ��*��!$ 37,390 28,675 115,538 110,593 Ghauri block 14,886 18,388 56,727 75,403 Sukkur block 15,631 9,262 35,623 27,131 Kohat block 108 (775) 810 895

327,383 190,966 965,947 840,216



Note (Rupees in thousand) (Rupees in thousand)QQ] �*��!��$��$��&��#!�$[�

�*��$��!"��

Mari Field3D seismic data acquisition - - - 24,226 Joint OperationsCost of dry and abandoned wells written off - 1,334,990 102,738 1,334,990 Prospecting expenditure 281,621 332,396 1,534,628 1,206,106

281,621 1,667,386 1,637,366 2,541,096 281,621 1,667,386 1,637,366 2,565,322

QW] �!��$#��5�?�*��$&�&@Mari Seismic Unit income / (loss) - net QW]K (149,959) (146,913) 386,581 (218,989)Mari Drilling Unit loss - net QW]Q (126,751) (141,581) (393,376) (180,983)Mari Seismic Processing Centre loss - net QW]W (12,983) (15,408) (38,224) (32,168)Line heaters rental income 2,221 1,569 5,399 4,707 Gain on disposal of property, plant and equipment

3,540 (1,265) 13,226 (1,265)

Equipment rental income - Karak block 11,249 - 53,599 - Miscellaneous 3,581 1,624 11,785 6,850

(269,102) (301,974) 38,990 (421,848)

QW]K Break-up of Mari Seismic Unit income / (loss) - net is as follows:Income:Mari Seismic Unit income 171,209 - 1,209,047 241,471 Income on bank deposits 23,392 205 23,575 1,185

194,601 205 1,232,622 242,656 Less: ExpensesOperating expenses 282,799 74,930 661,208 244,969 Depreciation of property and equipment 61,744 72,184 184,788 216,641 Bank charges 17 4 45 35

344,560 147,118 846,041 461,645 (149,959) (146,913) 386,581 (218,989)

QW]Q Break-up of Mari Drilling Unit loss - net is as follows:Income:Mari Drilling Unit rental income 135,982 (19,491) 189,168 143,677 Less: ExpensesOperating expenses 190,566 102,984 445,956 275,844 Depreciation of property and equipment 72,167 19,106 136,588 48,816

262,733 122,090 582,544 324,660 (126,751) (141,581) (393,376) (180,983)



(Rupees in thousand) (Rupees in thousand)QW]W Break-up of Mari Seismic Processing Centre loss -

net is as follows:Income:Mari Seismic Processing Centre income 25,083 9,868 42,558 9,868 Less: ExpensesOperating expenses (net of recoveries from joint operating partners) 33,261 20,471 66,365 27,619 Depreciation of property and equipment 4,805 4,805 14,417 14,417

38,066 25,276 80,782 42,036 (12,983) (15,408) (38,224) (32,168)

QY] FINANCE INCOMEInterest income on bank deposits 100,082 62,514 293,823 141,989 Interest income on short term investments 85,235 - 195,234 -

185,317 62,514 489,057 141,989

QM] FINANCE COST��#��!��*��*��$ 50,256 62,677 201,520 124,498 ��#��*��$ - - - 11,615 Unwinding of discount on provision for decommis-sioning cost

180,133 160,047 537,042 480,141

Exchange (gain) / loss (53,218) (19,488) 44,877 (26,475)��"��%��#��$ - - 1,783 17,765 Bank charges 266 785 824 2,845

177,437 204,021 786,046 610,389

Q�] ��(�&��$��!�*�!��$Current 2,053,466 235,978 4,029,524 1,442,944 Deferred (75,710) 121,866 186,681 465,689

1,977,756 357,844 4,216,205 1,908,633



Qq] ��$�$[&��&��<�4�&�#��$��"!��

��#��$�^<�#��$` 3,968,815 1,694,798 10,784,233 6,306,917 Distributable earnings (Rupees in thousand) 179,800 165,515 527,649 488,059 Number of shares outstanding (in thousand) 110,250 110,250 110,250 110,250 Earnings per ordinary share (in Rupees) �W�]VV� 15.37 ��q]wQ� 57.21 Distributable earnings per ordinary share (in Rupees) �K]�W� 1.50 �Y]q�� 4.43

Qw] #�&��$��#�&��"�(��$!&

��#��#��'��$��;��!��#��!!�'��*£


Cash and bank balances 7,761,090 5,932,608 Short term investments 9,324,438 -

17,085,528 5,932,608

Nine months endedQ�] !��$&�#!��$&�)�!��!��!��& WK]VW]QVKw 31.03.2017

(Rupees in thousand)[�� /�� >�:Foundation Power Company Daharki Limited (FPCDL) 4,799,146 5,189,712 Fauji Fertilizer Company Limited 27,012,950 29,252,155 Central Power Generation Company Limited 12,499,202 8,739,303 Sui Southern Gas Company Limited 4,765,100 4,935,246 Sui Northern Gas Pipelines Limited 3,402,520 1,969,502

�� 6��<��#�� 5,399 4,707 ��6��3��/��<��4��6�� 174,167 82,275 ��6��6��G��6��<��4��6�� 35,778 - ��6��\��G��=�6��D�6��/�� 2,360,791 3,000,614 #��3��6/ �=��3��/ �� 200,763 189,539


WV] OPERATING SEGMENTS

WV]K Basis of segmentationThe Company has following three strategic divisions based on the main types of activities, which are considered its reportable segments:i) Exploration and Productionii) Mari Seismic Unitiii) Mari Drilling Unit

WV]Q Information about reportable segments��!��$��#��[!��*��[!�'=��*��#��^!��`�[��V��$��#��because management believes that this information is the most relevant in evaluating the results of the respective segment. Accordingly, information about segment assets and liabilities is not presented.

Exploration and ��

��&��6��Unit

�� D�Unit Total

---------- (Rupees in thousand) ----------��WK+�QVKwRevenue from external customers 72,367,929 107,098 189,168 72,664,195 Inter-segment revenue - 1,101,949 616,730 1,718,679

72,367,929 1,209,047 805,898 74,382,874

Operating expenses 4,753,324 661,208 796,749 6,211,281 Depreciation and amortization 2,234,524 184,788 215,757 2,635,069 Cost of dry and abandoned wells written off 102,738 - - 102,738 Other income / (expenses) 45,785 - - 45,785 Finance income 489,057 23,575 - 512,632 Finance cost 786,046 45 - 786,091 ��5�? ��@�3��\�� 15,007,233 386,581 (206,608) 15,187,206

��WK+�QVKqRevenue from external customers 74,137,485 - 143,677 74,281,162 Inter-segment revenue - 241,471 1,192,366 1,433,837

74,137,485 241,471 1,336,043 75,714,999

Operating expenses 4,175,952 244,969 894,721 5,315,642 Depreciation and amortization 953,289 216,641 215,754 1,385,684 Cost of dry and abandoned wells written off 1,334,990 - - 1,334,990 Other income / (expenses) (21,876) - - (21,876)Finance income 141,989 1,185 - 143,174 Finance cost 610,389 35 - 610,424 ��5�? ��@�3��\�� 8,615,522 (218,989) 225,568 8,622,101

38 Mari Petroleum Company Limited

Qaiser Javed��

��[��9�$��6��6��+��?�@+�?��@��D��D��5�#��


WV]W �� D6��'��G��/��3��\��


i) Revenue from reportable segments 74,382,874 75,714,999 Elimination of inter-segment revenue - Mari Drilling Unit (616,730) (1,192,366)Revenue of the Company 73,766,144 74,522,633

Revenue of the Company comprises: - Gross sales to customers 72,367,929 74,137,485 - Mari Seismic Unit - other income 1,209,047 241,471 - Mari Drilling Unit - other income 189,168 143,677

73,766,144 74,522,633

ii) ��[��V��#��[!��*�� 15,187,206 8,622,101 �!��*��#��!!��*�� (186,768) (406,551)��[��V��#�� 15,000,438 8,215,550

WV]Y Other information

Revenue from external customers for products of the Company is disclosed in note 20.

<��X��#��>�_��!��$��*��#��$��$$�� ]��^�� ]��£�>�_`=

WK] #��&��$��$[��["��&

��!!�'��*��*��[��$��#��$��*��*��#��$%��#��£Rupees in thousand

�� V��*�*��!��$��¡��¡�� 26,475

WQ] ��!��"!��Z�!��$��&&"�

+��$��$��!��'��$��[��$��#��~#��!��2018.


MARI PETROLEUM COMPANY LIMITED VISION AND MISSION STATEMENT

(��MPCL envisions becoming an international integrated exploration and production company by enhancing its professional capacity through highly knowledgeable and talented workforce that builds its petroleum reserves by consistently discovering more than what it produces within �� $� �[��$¤� ��$� ��#��*� ��!� ��#��$� #��[�!�� *�� #�� '��!� ��*�environmental safeguards and catering to social welfare needs of the communities inhabiting the area of operations.

MissionTo enhance exploration and production by exploiting breakthroughs in knowledge and technological innovations, adopting competitive industrial practices to adequately replenish the produced reserves and optimizing production for maximizing revenues and return to the shareholders whilst maintaining the highest standards of HSE and CSR.


Prospect 3


Shale


limestone


Compilation Integrity Test (CIT)

Supr line up

Post Acid Test


Age

Head Office21 Mauve Area, 3rd Road, G-10/4

Islamabad - 44000. PakistanUAN: +92-51-111 410 410 Fax: +92-51-2352859

www.mpcl.com.pk

Daharaki Field OfficeDaharaki, District GhotkiPakistanUAN: +92-723-111 410 410Fax: +92-723-660402

Karachi Liaison OfficeD-87, Block, KehkashanClifton, Karachi-75600, PakistanUAN: +92-21-111 410 410Fax: +92-21-35870273

Quetta Liaison Office26, Survey-31Defence Officers Housing SchemeAirport Road, Quetta, PakistanTel: +92-81-2821052, 2839790Fax: +92-81-2834465

OHSAS 18001 : 2007ISO 9001 : 2008 ISO 14001 : 2004 ISO/IEC 27001 : 2005PERFORMANCEISO 26000

www.sgs.com

Interim Financial Statements (Un-audited) For the Nine ...

Documents

Transcript of Interim Financial Statements (Un-audited) For the Nine ...