MPCL Ar 2022 SP

Cover Story
Cover Story
The title page of our Annual Report infrastructure. Terrain related challenges
is a pictorial depiction of the difficult together with harsh weather conditions
terrain in some of our concession areas and precarious security situation often
where different exploration projects are make our operations quite challenging
currently underway. and impact the safety of our personnel
and assets, projects’ delivery and
With the passage of time, the proven, economics.
accessible basins and plays in the
Country are reaching maturity. In search We overcome these challenges with
of new deposits of oil & gas to meet courage and sheer determination to
the insatiable demand for energy, our keep doing our part towards the socio-
exploratory efforts are now increasingly economic development of the Country.
focused on under-explored frontier We are ever-committed to open-up
regions. These remote, inhospitable these desolate and frontier regions
areas pose daunting challenges that we for hydrocarbon exploration, thereby
do not typically face at other locations bringing these areas in the mainstream.
that are accessible and closer to the
About this Report
About this Report
Contents: This Report contains the However, subsequent events and The information contained in the
relevant background information developments up to the date of forward looking statements is valid only
about MPCL, and presents a printing of the Report have been till the date of publication of this Report.
comprehensive review of the included, where relevant, to keep the
Company’s performance during the information up-to-date. There have not been any significant
FY 2021-22, and its future plans. changes to the scope, boundary and
The financial data and figures are Financial analyses and reviews are reporting basis since the last reporting
complemented by graphs, charts, and based on the financial information date of June 30, 2021.
analyses to provide data visualization contained in the approved Audited
and necessary explanations. The Financial Statements for the year External Assurances/Reviews:
write-ups capture the important ended on June 30, 2022, with relevant The Financial Statements has
aspects of the Company’s operations comparative information. The Financial been audited and the Statement
in narrative form. Statements have been prepared in of Compliance with the Listed
accordance with the accounting and Companies (Code of Corporate
The topics covered and where to find reporting standards as applicable Governance) Regulations, 2019 have
them in the Report have been provided in Pakistan. Additional data and been reviewed by the Company’s
on the next page. information have been included in line statutory auditors M/s A.F. Ferguson &
with the best corporate reports criteria Co., Chartered Accountants, and their
Scope and Boundary: The prescribed by the Joint Committee of reports are part of this Annual Report.
Report covers the period from ICAP-ICMAP and the Pakistan Stock
July 01, 2021 to June 30, 2022. Exchange.
Disclaimer
All forward-looking statements are management’s present expectations of future events and are subject to a number of factors and uncertainties
that could cause actual results to differ materially from those described in the forward-looking statements.
Forward looking statements should not be relied upon for making investment or other decisions as the statements speak only as of the date they
were made.
Sachal Gas Processing Complex-Mari Gas Field-Daharki, Sindh

Contents
Management information 133 Return on Equity (Dupont Analysis)
04 Our Performance 134 Horizontal Analysis - Statement of Financial
06 Sustainable Shareholders’ Return Position
07 Reinvesting for Growth and Future Cash Flows 136 Horizontal Analysis - Statement of Profit or Loss
08 Contribution to the National Economy 138 Vertical Analysis - Statement of Financial Position
10 Significant Achievements 2021-22 140 Vertical Analysis - Statement of Profit or Loss
12 Our Human Capital 142 Six Years' Analysis - Horizontal Analysis
20 Company Information 144 Six Years’ Analysis - Vertical Analysis
22 Notice of Annual General Meeting 145 Six Years’ Analysis - Performance Indicators
26 Company Profile 147 Statement of Value Added
28 Our History 148 Ten Years at a Glance
30 Our Vision & Mission 149 Pattern of Shareholding
32 Our Commitments 154 Directors’ Report
33 Quality Policy 172 MPCL’s Operated Blocks
33 Integrated Management System Policy 173 MPCL’s Non-Operated Blocks
33 Changes from Prior Year 174 Geographical Presence
34 Code of Conduct 175 Independent Auditors’ Review Report
35 Corporate Culture and Our Core Values 176 Statement of Compliance with Code of
36 Profile of Board of Directors Corporate Governance
40 Organogram
42 Chairman's Review Financial Statements
44 Managing Director's Outlook 182 Independent Auditors' Report
50 Success Stories: Significant Hydrocarbons 188 Statement of Financial Position
Discovery at Bannu West Block, KP 190 Statement of Profit or Loss
54 Success Stories: Expansion of Exploration Acreage 191 Statement of Comprehensive Income
Adding Prospective Blocks to Portfolio 192 Statement of Changes in Equity
56 MPCL Reserves & Resources 193 Statement of Cash Flows
58 Risks and Opportunities Report 194 Notes to and Forming Part of the Financial
64 Strategic Business Plan and Resource Allocation Statements
68 Organizational Overview
72 Forward-Looking Statement 241 Definitions and Glossary of Terms
76 The Effect of Technological Change, Societal Issues 260 Directors' Report (Urdu)
and Resource Shortages, on the Company Strategy 261 Proxy Form (Urdu)
and Resource Allocation. 263 Form of Proxy (English)
82 Sustainability and CSR Initiatives
84 Health, Safety and Environment Policy
85 Health, Safety and Environment
86 Ten Process - Safety Fundamentals
91 Human Resource - Management and Development
94 Value Added to the Shareholders' Net Worth
95 Corporate Social Responsibility
102 Flood Relief Initiatives by MPCL
104 Sustainable Development Goals
106 Information Technology
110 Awards and Recognitions
112 Major Social Events
114 Corporate Governance
129 Financial Capital
130 Performance Indicators
131 Quarterly Analysis
132 Summary of the Statement of Cash Flows
Mari Gas Field
Daharki, Sindh
Mari Gas Field Features

Area: 969.27 Sq. Km
Discovered in: 1957
Production Started: 1967
Producing Wells: 152
Gathering Network: 407.8 Km
Reservoirs: HRL, SML/SUL, PKL, Goru-B
• Pakistan’s largest remaining gas reserves

at a single gas field.
• Uninterrupted gas supply for the last 55
years.
• More than 90% urea production in the
Country is based on Gas supplied from
Mari Field.
• Accounts for 94% of MPCL’s hydrocarbon
production and 85% of the total revenues.
Operator Production
MPCL ( 100%) Condensate
(BPD) 65
Gas
(MMSCFD) 747
04 Mari Petroleum Company Limited
Our Performance
Financial Accomplishments
Highest Ever Highest Ever Highest Ever
Net Sales Net Profit Earnings Per Share
Rs 95.13 billion Rs 33.06

without Super Tax: Rs 38.27 billion
billion Rs 247.84
(2021: Rs 73.02 billion) (2021: Rs 31.44 billion) (2021: Rs 235.71)
Highest Ever
Cash Generated from
Operations
Rs 49.40 billion
(2021: Rs 29.97 billion)
130.00 45.000 340.0
247.84
33.06
95.13
113.75 39.375 297.5
235.71
31.44
227.23
30.31
97.50 33.750 255.0

73.02
182.36
72.03
24.33
81.25 28.125 212.5

59.46
115.25
65.00 22.500 170.0

15.37
40.72
48.75 16.875 127.5

32.50 11.250 85.0
2017-18
2018-19
2019-20
2020-21
2021-22
2017-18
2018-19
2019-20
2020-21
2021-22
2017-18
2018-19
2019-20
2020-21
2021-22
NET NET EARNINGS
16.25 SALES 5.625 PROFIT 42.5 PER SHARE
0.00 (Rupees in billion) 0.000 (Rupees in billion) 0.0 (Rupees)
Annual Report 2022 05
Operational Excellence
Highest Ever Highest Ever
Energy Produced Gas Production Oil Production
36.91 MMBOE 283.17 BSCF 458,509 Barrels
(2021: 35.87 MMBOE) (2021: 269.26 BSCF) (2021: 457,205 Barrels)
Total Recordable
Case Frequency (TRCF)
0.12
(2021: 0.18)
50.00 400 800000.000000
543,820
283.17
36.91
43.75 350
35.87
269.26
257.16
666666.666667
34.02
257.14
33.64
249.55
33.41
457,205
458,509
37.50 300
405,055
383,548
31.25 250 533333.333333
25.00 200 400000.000000
18.75 150 266666.666667
12.50 100
2017-18
2018-19
2019-20
2020-21
2021-22
2017-18
2018-19
2019-20
2020-21
2021-22
2017-18
2018-19
2019-20
2020-21
2021-22
ENERGY GAS 133333.333333 OIL

6.25 PRODUCED 50 PRODUCTION PRODUCTION
0.00 (MMBOE) 0 (BSCF) 0.000000 (Barrels)
Sustainable Shareholders' Return
Total
Dividend Shareholders'
Per Share Return
Rs 124 23 %
(2021: Rs 141) (2021: 29%)
Market Dividend
Capitalization Payout
Rs 232 billion
Share Price
50 %
(2021: Rs 203 billion) (2021: 60%)
Rs 1,740
(2021: Rs 1,524)
MPCL's Share Price Performance

1,850
47,000 1,800
46,000 1,750
1,700
45,000 1,650
1,600
44,000
1,550
43,000 1,500
1,450
42,000
1,400
41,000 1,350
Jul-21 Aug-21 Sep-21 Oct-21 Nov-21 Dec-21 Jan-22 Feb-22 Mar-22 Apr-22 May-22 Jun-22
KSE 100 Index MPCL
With YoY increase of 14%, MPCL Share Price outperformed

KSE 100 Index, which was down by 12%
Reinvesting for Growth and
Future Cash Flows
MPCL has extensively invested in oil and gas and
new energy opportunities with discipline
Focus on Reserves
Cash Utilized in Replacement Enhanced Reserves
Investing Activities Ratio (RRR) and Resources (2P+2C)
Rs 41.01 billion 32 % 642 MMBOE
(2021: Rs 22.86 billion) (2021: 200%) (2021: 612 MMBOE)
Focus on
Resources Additions
345 %
(2021: 100%)
Secured A Step
Five Additional Towards
Blocks Internationalization
(2021: Added Acquired an
Four Additional Offshore Block 5
Blocks) in Abu Dhabi
Completed Seismic Data

Acquisition Projects
1,513 Line KM 2D
340 Sq. KM 3D
Aggressive Drilling Plan of last two years

Drilled and completed 17 wells
4 discoveries from 10 exploratory wells
Contribution to the National Economy

Saved Foreign Exchange Contribution to
for Pakistan National Exchequer
US$ 3 billion Rs 77.62 billion
(2021: US$ 2 billion) Uplifting living (2021: Rs 63.07 billion)

conditions of people
through various
CSR programs
Rs 4.15 billion
(2021: Rs 0.52 billion)
Social
Welfare and Education
Community Rs
0.04
Development
Rs 3.64
billion
billion
Health
Care
Rs0.47
billion
Ensuring Injecting
Pakistan's Supplying gas into
Food Security gas for power distribution
More than 90% generation companies
urea production in to meet energy networks
Pakistan is based crises of for domestic/
on MPCL's Pakistan commercial
supplied gas consumers
Over the last five years
Saved over Spent around Rs 6

US$ 11 billion foreign billion on various
exchange for Pakistan CSR activities
Contributed
Rs 366 billion to the
national exchequer
Significant Achievements
2021-22
Successful
Discovery of
Hydrocarbons at
Bannu West, North
Waziristan
Commencement
of Gas Supply
from Sachal
Gas Processing
Complex - Mari Gas
Field, Daharki
Award of Offshore
Block-5 in Abu
Dhabi to a Pakistani
Consortium
Comprising MPCL,
PPL, OGDCL and GHPL
Award of
5 New Blocks
in the Block Bid
Round 2022
EWT Production
Commencement
from Hilal-1
& Iqbal-1
Discoveries -
Mari Gas Field,
Daharki
Production
Commencement
from Togh Bala-02,
Kohat Block
First Ever Third

Party Project
Completed by
Mari Services
Division
Commissioning
of Cross Country
Gas Export
Pipeline providing
Connectivity with
SNGPL Network
- Mari Gas Field,
Daharki
Our Human Capital

Passion, Perseverance,
Performance
Seismic Activities - Bannu West Block, KP
Seismic Activities - Block 28, Balochistan

Seismic Data Processing Center - Head Office, Islamabad
MD's Visit to Bannu West Block - KP
Zarghun South Gas Field - Balochistan MD's Visit to Zarghun South Gas Field - Balochistan
Our Human Capital
Pressure Setting for Low Pressure Separator

at Kalabagh Condensate Field, Karak Block,
Gas Injection System - Halini Oil Field, Karak Block, KP/Punjab KP/Punjab
Seismic Activities - Taung Block, Sindh
Challenges Fuel
Our Passion
Gas Flow Recorder - Halini Oil Field, Karak Block, KP/Punjab

Communicating SDV Status with CCR - Zarghun South Gas Field, Balochistan
Routine Check-up of Flow Computer - Sujawal Block, Sindh
Inspection of Carrier Gas Pressure at Gas Analyser Unit

- Zarghun South Gas Field, Balochistan Level Transmitter Calibration - Zarghun South Gas Field, Balochistan
Our Human Capital
Signing Ceremony of Nareli and North Dhurnal Blocks - Ministry of Energy (Petroleum Division), Islamabad
Converting
Challenges into
Opportunities
CNPC Chinese Delegation Visits MPCL Head Office, Islamabad
Data Center - Head Office, Islamabad Senior Management Team Building Event
Discussion on Prospectivity Zone Map - Head Office, Islamabad
Presentation on G&G - Head Office, Islamabad
Team Discussion on G&G - Head Office, Islamabad Team Discussion on G&G - Head Office, Islamabad
Our Human Capital
HSE Safety Drill - Head Office, Islamabad
Fire Fighting Training - Head Office, Islamabad First Aid Training - Head Office, Islamabad
World Environment Day - Islamabad

Mobile Dispensary at Mari Gas Field - Daharki, Sindh Noor-e-Sehar Special Education School - Daharki, Sindh
Pur-Khaloos Campaign, Street Children Having Hygiene Session - Islamabad Mari Educational and Medical Complex - Mari Gas Field, Daharki, Sindh
Making the
World a
Better Place
Noor-e-Sehar Special Education School - Daharki, Sindh

Company Information
Registered / Head Office External Auditors Dubai Islamic Bank
21, Mauve Area, 3rd Road, G-10/4 A.F. Ferguson & Co. Faysal Bank Limited
P.O. Box 1614, Islamabad – 44000 Chartered Accountants Habib Bank Limited
Tel: +92 51 111-410-410, A member firm of PwC network Habib Metropolitan Bank
+92 51 8092200 JS Bank Limited
Fax: +92 51 2352859 Shares Registrar Meezan Bank Limited
Email: info@mpcl.com.pk Corplink (Pvt) Limited Muslim Commercial Bank Limited
Web: www.mpcl.com.pk Wings Arcade, 1-K Commercial National Bank of Pakistan
Model Town, Lahore Standard Chartered Bank
Field Office Daharki Tel: +92-42-35839182, 042-35916714 United Bank Limited
Daharki, District Ghotki Email: corporate@corplink.com.pk The Bank of Punjab
Tel: +92 723 111-410-410
+92 723 660403-30 Legal Advisor Registration,
Fax: +92 723 660402 Ali Shah Associates NTN and GST Numbers
Advocates High Court Registration Number:
Karachi Liaison Office 1-Ali Plaza, 4th Floor 00012471
D-87, Block 4, Kehkashan, Clifton 1-E, Jinnah Avenue National Tax Number:
P.O. Box 3887, Karachi – 75600 Blue Area, Islamabad 1414673-8
Tel: +92 21 111-410-410 Tel: +92 51 2825632
Fax:+92 21 35870273 General Sales Tax Number:
Bankers 07-01-2710-039-73
Quetta Liaison Office Allied Bank Limited Symbol on Pakistan Stock Exchange:
26, Survey-31, Defence Officers Al Baraka Bank (Pakistan) Limited Mari
Housing Scheme, Airport Road, Quetta Askari Bank Limited
Tel: +92 81 2821052, 2864085, Bank Alfalah Limited
2839790 • Fax: +92 81 2834465 Bank Islami Pakistan Limited
MPCL Head Office Buildings - Islamabad

Notice of Annual General Meeting

Notice is hereby given that the 38th Annual General Meeting (AGM) of the
Shareholders of Mari Petroleum Company Limited will be held at the Registered
Office of the Company situated at 21-Mauve Area, 3rd Road, Sector G-10/4,
Islamabad on Wednesday, September 28, 2022 at 10:00 a.m., to transact the
following business.
Ordinary Business:
1. To receive, consider and adopt the Audited Annual Financial Statements of
the Company for the year ended June 30, 2022 together with the Directors'
and Auditors' reports thereon.
2. To approve, as recommended by the Board of Directors, the payment of

final dividend @ Rs. 62/- per share (620 %) for the financial year ended June
30, 2022. This is in addition to interim dividend @ Rs.62/- per share (620%)
Notes:
already paid.
1. Book Closure
3. To appoint Auditors for the year 2022-23 and fix their remuneration.
The Share Transfer Books of the
4. Any other business with the permission of the Chair. Company shall remain closed from
September 22, 2022 to September 28,
2022 (Both days inclusive). Transfers
By order of the Board received in order at the Company’s Share
Registrar, M/s Corplink (Pvt) Limited,
Wings Arcade, 1-K Commercial, Model
Town, Lahore, up to the close of business
on September 21, 2022, will be treated
Muhammad Sajjad as in time for the purpose of attending
September 06, 2022 Acting Company Secretary the AGM and payment of final dividend.
2. Virtual Participation in the AGM Proceedings meeting. The individual members

Shareholders interested in attending the AGM virtually are hereby advised to get or representatives of corporate
themselves registered with the Company by providing the following information members of the Company in CDC
through email at corporate.affairs@mpcl.com.pk; must bring original National Identity
Cards or Passport and CDC Account
Folio and Participant ID Numbers to prove
No of Contact Email
Name of Shareholder CNIC No. No./CDC
Shares No. Address identity and verification at the time of
Account No.
the meeting.
CDC Investor Account Holders will

Online meeting link and login credentials will be shared with only those further have to follow the guidelines
Members whose emails, containing all the required particulars, are received at as laid down in Circular No. 1 dated
the given email address by the end of business on Tuesday 27 September, 2022. January 26, 2000, issued by the
The login facility shall remain open from 09:45 am till the end of the meeting on Securities and Exchange Commission
September 28, 2022. of Pakistan (SECP).
3. Attending AGM in person or through Proxy 4. Payment of Cash Dividend

A member entitled to attend and vote at the above meeting may appoint a through Electronic Mode
person/representative as Proxy to attend and vote on his behalf at the Meeting. The provisions of Section 242 of the
The instrument of Proxy duly executed in accordance with the Articles of Companies Act, 2017 require that
Association of the Company must be received at the Registered Office of the the dividend payable in cash shall
Company not less than 48 hours before the time of holding of the meeting. For only be paid through electronic
the convenience of shareholders, blank proxy forms (both in English or Urdu) are mode directly into the bank
available on the Company’s website at https://mpcl.com.pk/forms/ accounts designated by the entitled
shareholders. Therefore, for making
In the case of a corporate entity, the Board of Directors’ resolution/power of compliance to the provisions of the
attorney with specimen signature of the nominee shall be produced before the law, all those physical shareholders
Notice of Annual General Meeting
who have not yet submitted their International Bank Account Number (IBAN Registrar before commencement
No.) and CNIC details to the Company, are requested to provide the same on the of book closure otherwise tax will
Dividend Mandate Form available on Company’s website at http://mpcl.com.pk. be deducted on dividend as per
The shareholders of the Company in CDC are requested to provide the same to applicable rates.
their Participants in CDC who maintain their accounts in CDC, and ensure that
their IBAN details are updated. In case of unavailability of IBAN and valid CNIC, 6. Transmission of Annual
the Company would be constrained to withhold dividend in accordance with the Audited Financial Statements,
Companies (Distribution of Dividends) Regulations, 2017. Reports and Notice of AGM.
The Company shall place the
5. Deduction of Income Tax from Dividend and Exemptions from deduction financial statements and reports
The current prescribed rates for the deduction of withholding tax under Section on the Company's website: http://
150 of the Income Tax Ordinance, 2001 from payment of dividend by the mpcl.com.pk/ at least twenty one
companies are as under: (21) days prior to the date of the
AGM.
For filers of income tax returns : 15%
For non-filers of income tax returns : 30%
The Annual Financial Statement of
the Company for the year ended
The income tax is deducted from the payment of dividend according to
June 30, 2022, are being dispatched
the Active Tax-Payers List (ATL) provided on the website of FBR. All those
to the shareholders through DVD.
shareholders who are filers of income tax returns are therefore advised to
ensure that their names are entered into ATL to enable the Company to withhold
Further, pursuant to SECP’s S.R.O.
income tax from payment of cash dividend @ 15% instead of 30%.
787(1)/2014 dated September 8,
Further, according to clarification received from Federal Board of Revenue 2014, the shareholders can also
(FBR), withholding tax will be determined separately on 'Filer/Non-Filer' status opt to obtain Annual Report along
of Principal shareholder as well as joint-holder(s) based on their shareholding with Notice of the Annual General
proportions in case of joint accounts held by the shareholders. Meeting through email. To avail this
facility, shareholders are requested
In this regard all shareholders who hold shares jointly are requested to provide to submit the duly filled request
the shareholding proportions of Principal shareholder and Joint-holders in form available on the company’s
respect of shares held by them to our Shares Registrar in writing as follows: website http://mpcl.com.pk at the
office of Company Secretary.
MARI PETROLEUM COMPANY LIMITED
Annual Audited Financial
FORM OF JOINT SHAREHOLDING PROPORTION
Statements along with the reports
Principal Shareholder Joint Shareholders and Notice of AGM are being sent to
Folio/CDC
Account Total Holding Name of Shareholding Names Shareholding Signatures
members who have provided their
Number Principal Proportion of Joint Proportion email addresses. Physical copy of
Shareholder (No. of Shareholders (No. of
and CNIC No. Shares) and CNIC No. Shares) the Annual Report will be provided
to the members on demand.
7. Consent for Video Conference

The joint accounts information must reach our Shares Registrar within 10 days of Facility
this notice. In case of non-receipt of the information, it will be assumed that the Pursuant to Section 132 (2) of the
shares are equally held by principal shareholder and the Joint Holder(s). Companies Act, 2017, Members
may avail video conference facility
The corporate shareholders of the Company in CDC are advised to ensure that for this Annual General Meeting
their National Tax Numbers (NTNs) have been updated with their respective provided the Company receives
participants, whereas corporate physical shareholders must send a copy of their consent from the members
NTN Certificate with their Folio Numbers mentioned thereon to the Company or holding aggregate 10% or more
its Shares Registrar. shareholding at least 7 days prior to
the date of meeting. The requisite
The shareholders, who want to avail exemption u/s 150 of the Income Tax form for availing the facility is
Ordinance 2001, must provide valid Tax Exemption Certificate to our Shares provided in the Annual Report-2022.
8. Conversion of Physical Shares 9. Unclaimed Dividends and Share 10. Change of Address
into Book-Entry Form Certificates Members are requested to immediately
As per Section 72 of the Companies The Company has previously notify the change in their mailing address
Act, 2017, all listed companies are discharged its responsibility under to the Company’s Shares Registrar, M/s
required to replace shares issued Section 244 of the Companies Corplink (Pvt.) Limited.
by them in physical form to book- Act, 2017 whereby the Company
entry form within four years of the approached the shareholders to 11. Contact Details
promulgation of the Act. claim their unclaimed dividends and For any query/information, the
undelivered share certificates in shareholders may contact Corporate
Accordingly, all shareholders of the accordance with the law. Affairs Department, Phone: 051-111-410-
Company having physical shares are 410, Email: corporate.affairs@mpcl.com.
requested to convert their shares Shareholders, whose dividends and pk or to the Company’s Shares Registrar,
into book-entry form at the earliest. share certificates are still unclaimed/ M/s Corplink (Pvt) Limited, Wings Arcade,
The shareholders may contact undelivered, are hereby once again 1-K Commercial, Model Town, Lahore.
the Company or Shares Registrar, advised to approach the Company Phone: 04235916714, 04235916719.
M/s Corplink (Pvt.) Limited for the to claim their outstanding dividend Email: corporate@corplink.com.pk,
conversion of physical shares into amounts and/ or undelivered share corplink786@gmail.com
book-entry form. certificates.
37th Annual General Meeting - Head Office, Islamabad

Company Profile
Market Share
Product Total Output MPCL’s Output MPCL’s Share
Gas (MMSCF) 1,237,251 281,052 22.7%

Oil & Condensate (BBLs) 26,806,083 656,969 2.5%
Source: Pakistan Petroleum Information Service by LMKR on behalf of DGPC.

Based on the data for FY 2021-22.
Introduction as well as provision of E&P related

MPCL is an integrated exploration services on commercial basis.
and production company, currently
managing and operating Pakistan’s Major Brands, Products
largest gas reservoir at Mari Gas Field, and Services
Daharki, Sindh. With around 23% MPCL is a major producer of
market share, it is the second largest natural gas. It also produces
gas producer in Pakistan and owns crude oil, condensate and LPG.
the second highest reserves base. All the products of the Company
The Company’s net daily production is are supplied to midstream and
over 100,000 barrels of oil equivalent. downstream customers. The
Company also provides 2D/3D
MPCL plays a pivotal role in seismic data acquisition, seismic
ensuring food security of Pakistan data processing, gravity & magnetic
as more than 90% urea production survey, drilling and mud logging
in the Country is based on MPCL services.
supplied gas. It also supplies gas for
power generation and distribution Major Customers/Markets
companies. The gas produced by MPCL is
supplied to fertilizer manufacturers,
To its credit, MPCL has the unique power generation and gas
record of maintaining uninterrupted distribution companies, while six (06) D&P Leases and thirteen (13)
gas supply to its customers from crude oil and condensate are exploration licenses (including three
Mari Field for the last fifty five years, supplied to the refineries for further provisionally awarded licenses while
without availing even the permitted processing. The Company caters Assignment Agreement of another
outages. to local customers (including EPZ license is in progress). Its exploration
within Pakistan) with currently no and production assets are spread across
Principal Business Activities activity in the export market. all four provinces of Pakistan as well as
MPCL is primarily an exploration and in Abu Dhabi where it is a joint venture
production company in the upstream Geographic Presence partner with leading Pakistani National
segment of the petroleum industry. Its MPCL currently holds seven (07) E&P Companies in an offshore block.
principal business activities include D&P Leases and sixteen (16)
oil and gas exploration, drilling, field exploration licenses (including two Certifications and Recognitions:
development, production and sale provisionally awarded licenses) MPCL is an ISO certified Company
of hydrocarbons (including natural as an Operator. It is also a non- for Quality, Environment, Information
gas, crude oil, condensate and LPG) operating joint venture partner in Security, Occupational Health & Safety
from various independent bodies

for its financial and operational
performance, financial reporting,
management, HR, HSE, and CSR
practices.
and has achieved Advanced Level Ownership, Operating Structure

in ISO Certification for Social and relationship with Group of over Rs. 232 billion as on June
Responsibility. Companies 30, 2022. Major Shareholders of the
MPCL is a public limited company Company include Fauji Foundation
MPCL is a blue-chip company operating in the private sector. (40%), Government of Pakistan
at the stock exchange with the The Management of the Company (18.39%), OGDCL (20%) and General
highest share price in oil & gas is vested in Fauji Foundation. The Public (21.61%). All Fauji Foundation
sector companies (all streams). It Company is listed on Pakistan Stock group companies are the associated
regularly wins awards and accolades Exchange with market capitalization companies of MPCL.
Our History
Mari Gas Field was originally owned the assets, liabilities and operational in addition to the production activities.
by Pakistan Stanvac Petroleum control of the Mari Gas Field and Since then, MPCL has emerged as a
Project, a joint venture formed commenced business in its own successful E&P company with a proven
in 1954 between Government name in 1985 under the Mari Gas track record in the field of exploration
of Pakistan and Esso Eastern Wellhead Price Agreement (Mari and production.
Incorporated, having 49% and 51% GPA).
ownership interests, respectively. The Company has grown from the sale
The first gas discovery was made by In 1994, the Government divested of natural gas from an inherited field,
the Joint Venture in 1957 when the 50% of its share and the Company to the exploration, production, and
first Well in lower Kirthar ‘Zone-B’ became listed on all the stock sale of gas, oil and other petroleum
Limestone Formation was drilled. exchanges of Pakistan. products from a number of fields in all
Production from the field started in provinces of Pakistan. The name of the
1967. In 1983, Esso Eastern sold its The Company operated only as a Company was changed from "Mari Gas
entire share to the Fauji Foundation. gas production company and was Company Limited" to "Mari Petroleum
Consequently, it was decided to set engaged in developing the already Company Limited" (MPCL) in November
up a wholly owned Public Limited discovered Habib Rahi Reservoir in 2012 to reflect its diversified business
Company for the purpose of acquiring the Mari Gas Field for supply of gas operations and expanded activities.
the assets and liabilities of the to fertiliser plants. The Company
Project. pursued appraisal activities within its The Company had been outsourcing
Mari D&P Lease area by drilling step- seismic and drilling business like other
In 1984, Mari Gas Company Limited out wells to determine the extent of E&P companies. However, in 2013 the
(MGCL) was incorporated with Fauji the Habib Rahi Reservoir. Company decided to set-up a services
Foundation, Government of Pakistan division comprising of a 3D seismic data
and OGDCL as its shareholders having In 2001, the Company achieved a acquisition unit, a 2D/3D seismic data
40%, 40%, and 20% shareholding, new milestone when it was granted a processing centre and a fleet of three
respectively. The Company took over license for exploration of oil and gas on-shore drilling rigs, thus becoming a
Mari Field discovered by Esso

Eastern with original gas in place Fauji Foundation, OGDCL & GoP
Listing on all
estimated at 2.38 TCF, later acquired Esso’s entire operations,
Stock Exchanges of Pakistan
enhanced to 10.751 TCF including Mari Gas Field
1994
1957
1983
1984
1967
2001
Business reorganised and

incorporated as Mari Gas
Production of natural gas Company Limited
Entry into oil
commenced and gas exploration
Unlocking opportunities right from the start
fully integrated E&P company in the has allowed the Company to operate With effect from November 2019, an
Country. on commercial terms and become extension of five years in Mari lease
competitive to realize its full potential. period has been approved by the
In 2014, an extension of five years Government, extending the Company’s
in Mari lease period was approved In October 2015, the Company opted development and production rights in
by the Government, extending the for conversion of Mari D&P lease to the lease area till 2024. The extension
development and production rights in 2012 Petroleum Policy to avail the price will help the Company to focus on
the lease area till 2019. The extension incentives offered by the Government enhancing recovery from the Field by
has enabled MPCL to enhance the on production enhancement initiatives. implementing exploration plans and
recovery and produce more natural ramp-up existing production.
gas, which is critically needed in the In February 2016, MPCL became
Country. the first Pakistani E&P Company In February 2021, the Economic
to implement its incremental gas Coordination Committee of the Cabinet
Since its inception, the Company production project (at Mari Field) and approved removal of cap on dividend
had been operating on a cost-plus avail gas price incentive on incremental distribution by MPCL, enabling the
fixed-return formula under Mari GPA field production offered in 2012 Company to decide dividend payout in
1985. Pursuant to consistent efforts Petroleum Policy. accordance with the applicable laws,
by MPCL Management, a major based on its financial performance and
milestone was achieved in November Mari Field marked its Golden Jubilee internal funding requirements.
2014 when Economic Coordination on December 22, 2017. These were
Committee of the Cabinet approved 50 years of meticulous operations and MPCL Wins Offsore Block 5 in
dismantling of the Mari GPA and its true professionalism as evidenced by Abu Dhabi as part of a Consortium
replacement with an international uninterrupted supply of hydrocarbons of Pakistani E&P Companies in
crude oil price linked market oriented to the Company’s downstream August 2021.
formula. Dismantling of the Mari GPA customers.
Mari GPA dismantled and

replaced with a market
-oriented formula Golden Jubilee of Removal of Cap on
Renewal of un-interrupted gas Dividend Distribution by
Mari D&P Lease supply from Mari Field the GoP
2018
2014
2021
2019
2016
2012
Start of Incremental
Production from Mari Field
Conversion of Mari Field to
2012 Petroleum Policy
MGCL renamed as
Mari Petroleum
Company Limited Renewal of
Mari D&P Lease
Our Vision & Mission
MPCL Board of Directors
Vision
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 Pakistan and abroad; and
improving financial capacity and profitability through efficient operations, while
taking environmental safeguards and catering to social welfare needs of the
communities inhabiting the area of operations.
MPCL Senior Management
Mission
To enhance exploration and production by exploiting
breakthroughs in knowledge and technological innovations,
adopting competitive industrial practices to adequately replenish
the produced reserves and optimising production for maximizing
revenues and return to the shareholders whilst maintaining the
highest standards of HSE and CSR.
Our Commitments
Aligning the
interests of our
shareholders,
human resource,
customers and other
stakeholders to
create significant
business value
characterised by
excellent financial
results, outstanding
professional
accomplishments
and superior
performance
Exploring and
enhancing
the potential
of our human
resource
Adopting advanced
technology, cost
effective/efficient
operations, increasing
operating efficiency
and adherence
to the highest Providing
environmental uninterrupted
standards Maintaining petroleum
best and products
the safest supply to
operational customers
practices
MD's Visit to Surghar Well - Karak Block, KP/Punjab

Quality Policy
In order to ensure that our products and services are management system and standards. We are devoted to
of the highest quality, we engage skilled and qualified maintain effectiveness and continual improvement of IMS by
personnel, employ state of the art technology and monitoring Company objectives, customer satisfaction and
adhere to the best industry practices. We have complying with the legal and other applicable requirements.
implemented a quality management system to Our top management is committed to provide all resources
ensure that all our operations and activities are in required to ensure compliance with its IMS Policy and to
line with the requirements of ISO 9001:2015 (Quality attain best international performance criterion.
Management System).
Changes
IMS Policy From prior year
To realise our strategic vision and to achieve The Company’s vision, mission, ownership and operating
professional excellence in petroleum sector, we structure, and principal business activities are unchanged.
are committed to meet requirements of Integrated The Company has acquired new exploration blocks
Management Systems for Quality, Environment, within the Country and abroad, which are reflected in the
Occupational Health & Safety and Information geographical locations. Further, the Company has divested
Security consistent with internationally recognized its equity interest in National Resources (Pvt) Limited.
Monitoring of Parameters on Three Phase Separator - Sujawal Field, Sindh

Code of Conduct
MPCL Code of Conduct sets out the Company’s objectives and its responsibilities to various stakeholders and the
ethical standards required from its directors and employees to meet such objectives and responsibilities.
Financial Disclosure Compliance with Laws, Time Management

All transactions should be Directives & Rules The directors and the employees of
accurately reflected according to Compliance with all applicable laws, the Company shall ensure that they
accounting principles in the books regulations, directives and rules adopt efficient and productive time
of accounts. Falsification of its including those issued by the Board management schedules.
books, any of the recorded bank of Directors and the management.
accounts and transactions are Business Integrity
strictly prohibited. Confidentiality The directors and employees will
Confidentiality of the Company’s strive to promote honesty, integrity
Conflict of Interest internal confidential information and fairness in all aspects of its
The directors and employees of must be maintained and upheld, business and its dealings with
the Company must recognise that which includes proprietary, vendors, contractors, customers,
in the course of performing their technical, business, financial, joint joint venture partners and
duties, they may be out into a venture, customer and employee Government officials.
position where there is a conflict information that is not available
in the performance of such duty publicly. Gifts, Entertainment & Bribery
and a personal interest they may The directors and employees
have. It is the overriding intention Conduct of Personnel in shall not give or accept gifts,
of the Company that all business Dealings with Government entertainment or any other
transactions conducted by it are on Officials personal benefit or privilege that
arm’s length basis. The Company shall deal with the could influence business dealings.
Government officials fairly and
honestly and within the ambit of
the applicable laws, in order to
uphold the corporate image of the
Company.
Corporate Culture and Core Values
Insider Trading achieve continuous performance Equal Employment Opportunity

Every director and employee who improvement. It is the policy of the Company to
has knowledge of confidential provide employment opportunities
material information is prohibited Involvement in Politics without regard to race, religion,
from trading in securities of the The Company shall not make colour, age or disability subject to
Company to which the information payments or other contributions to suitability for the job.
relates. political parties and organisations.
Employees must ensure that if they Compliance
Health, Safety & Environment elect to take part in any form of All Company directors and
The Company, its directors and political activity in their spare time, employees must understand and
employees will endeavour to such activity does not and will not adhere to the Company’s business
exercise a systematic approach to have any adverse effects on the practices and Code of Conduct.
health, safety and environmental Company and such activities must be They must commit to individual
management in order to within the legally permissible limits. conduct in accordance with the
Company’s business practices and
Code of Conduct and observe both
the spirit and the letter of the Code
in their dealings on the Company’s
behalf.
Accountability
Failure to adhere to the Company’s
business practices or Code of
Conduct may result in disciplinary
action, which could include
dismissal.
MPCL HR Team Members

Profile of Board of Directors
Mr. Waqar Ahmed Malik (SI)

Managing Director/CEO, Fauji Foundation
Chairman MPCL Board
Mr. Malik is a fellow of the Institute of Chartered Company Limited, FFC Energy Limited, Fauji Fresh Executive & Independent) - Standard Chartered Bank
Accountants in England and Wales and an alumnus n Freeze Limited, Fauji Cement Company Limited, Pakistan Limited.
of the Harvard Business School and INSEAD. Earlier, Askari Bank Limited, Fauji Akbar Portia Marine
his career with ICI Plc Group based in the UK spanned Terminal Limited, Fauji Trans Terminal Limited, Fauji Mr. Malik is a member of visiting faculty of Pakistan
over 27 years and later with AkzoNobel N.V. based in Oil Terminal & Distribution Company Limited, Daharki Institute of Corporate Governance (PICG), former
the Netherlands. He is former Chief Executive Officer Power Holdings Limited, Foundation Wind Energy-I & II member of Board of Governors of Lahore University
(CEO) of ICI Pakistan Limited and Chairman & CEO of Limited, Foundation Power Company Daharki Limited, of Management Sciences (LUMS) and Board of Indus
Lotte Pakistan Limited (formerly Pakistan PTA Limited). Fauji Kabirwala Power Company Limited, Fauji Fertilizer Valley School of Arts. As trustee of Duke of Edinburgh
During his career with ICI and AkzoNobel, he worked in Bin Qasim Limited and FFBL Power Company Limited. Trust Pakistan, he was awarded Prince of Wales Medal
Europe and America in Corporate Finance and Strategy. as a Trustee of the "Prince of Wales Pakistan Recovery
Mr. Waqar Ahmed Malik joined Fauji Foundation as the He is Chairman of Pakistan Oxygen Limited (formally for the Flood Victims in 2010".
Managing Director and Chief Executive Officer on 9th Linde Pakistan, a subsidiary of Linde AG) acquired by
April 2020. Adira Capital Holdings (Private). He is also director on He has been playing an instrumental role in
the board of Rafhan Maize Products Company Ltd and development of Pakistan’s Regulatory System as well
Presently, he is serving as Chairman on the Boards on advisory board of Jazz Pakistan (Veon). Earlier, Mr. as for the advocacy to undertake economic reforms.
of Mari Petroleum Company Limited, Fauji Fertilizer Malik served on the prestigious boards as Chairman
(Non-Executive & Independent) - Pakistan Petroleum In recognition of his meritorious services during his
Limited, Director (Non-Executive & Independent) Engro long distinguished career, the President of Pakistan
Corporation Limited, Director - State Bank of Pakistan, has conferred him with "Sitara-e-Imtiaz", which is the
President - Overseas Chamber of Commerce & third highest Presidential award for public service.
Industry (OICCI), President - Management Association
of Pakistan (MAP), Director - Pakistan Business Council
(PBC), Trustee - I-Care Foundation and Director (Non-
Dr. Nadeem Inayat

Senior Director (Strategy and M&A)
Fauji Foundation
Dr. Nadeem Inayat joined MPCL Board on September He is also on the Boards of Fauji Fertilizer Co Ltd, academic courses on Economics, International
18, 2006. He is a Non-Executive Director, Chairman of Fauji Fertilizer Bin Qasim Ltd, Fauji Cement Company Trade and Finance at reputable institutions of higher
the Investment Committee and a Member of the Audit Ltd, Fauji Akbar Portia Marine Terminals (Pvt.) Ltd, education in Pakistan. He is also a member of Pakistan
Committee. Fauji Oil Terminal & Distribution Company Ltd, Askari Institute of Development Economics.
Cement Ltd, Daharki Power Holdings Ltd, Pakistan
Maroc Phosphor S.A., Foundation Wind Energy-I Ltd, He holds a Doctorate in Economics and has over
Foundation Wind Energy-II (Pvt.) Ltd, Fauji Fresh n 28 years of diversified experience in corporate
Freeze Ltd, Fauji Foods Ltd, Fauji Meat Ltd, FFBL Power governance, policy formulation and deployment,
Company Ltd, Askari Bank Ltd, Fauji Infraavest Foods project appraisal, implementation, monitoring &
Ltd, Foundation University and Noon Pakistan Ltd. evaluation, restructuring and collaboration with donor
agencies.
Dr. Nadeem is also on the boards of different public
sector universities and has conducted various
Maj Gen Ahmad Mahmood Hayat (Retd)

Director Health - Fauji Foundation
Maj Gen Ahmad Mahmood Hayat, HI (M), (Retd) He has commanded an Armour Regiment, Independent Currently, he is also on the Boards of Fauji Fertilizer
joined MPCL Board on September 07, 2020. He is a Armoured Brigade Group, Infantry Brigade and Infantry Company Limited and Fauji Fertilizer Company Energy
Non-Executive Director, Chairman of the Technical Division. He also held various staff appointments Limited.
Committee and a Member of the HR&R and Investment including Adjutant/Instructor Pakistan Military
Committees. Academy, Brigade Major of an infantry Brigade, General
Staff Officer-2 and 1 at CGS Secretariat, General Staff
He was commissioned in the Army on 06 Sep 1984. He Officer-1 at Military Operations Directorate, Chief of
is a graduate of Command and Staff College Quetta, Staff at Corps Headquarter, Director General in Inter
Command and General Staff Course USA, and National Service Intelligence Islamabad and Director General
Defence University Islamabad, Pakistan. He holds Defence Export Promotion Organization. In recognition
Master’s Degree in War Studies from Quaid-e-Azam of his outstanding services, he was awarded Hilal-i-
University Islamabad and Fort Leavenworth USA. Imtiaz (Military).
Mr. Faheem Haider

Managing Director/CEO
Mari Petroleum Company Limited
Mr. Faheem Haider is the Managing Director/CEO of GmbH, Helix RDS Limited UK, BG Group Plc UK, and the growth of Neptune’s business in Egypt, Indonesia
the MPCL since August 2020. Currently, he is the only Neptune Energy Group UK (formally known as Engie and Australia.
Executive Director on the Board of MPCL. E&P International). Other than Pakistan, he has been
based in full-time roles in the UK, Oman, Egypt and Although Mr. Haider is an upstream E&P professional,
Mr. Haider is also Chairman of the Board of Foundation France working on a variety of projects in the Middle through his most recent assignment at MPCL, board
Solar Energy Limited (FSEL) and serving as a non- East, North Africa, across Europe and the Asia Pacific. experiences and exposure to Fauji Foundation Group’s
executive director on the boards of the following other businesses have allowed him to diversify his
companies: He has a sound understanding of the E&P business skillset beyond oil and gas to other sectors e.g. mining,
from a technical, operational and commercial power, cement, fertilizer and terminals business.
• Pakistan International Oil Limited (UAE) perspective. Apart from handling the core E&P
• Fauji Akbar Portia Marine Terminal Limited operations in different parts of the world, he has Mr. Haider holds a Master’s degree in Petroleum
hands-on experience of joint venture management, Engineering & Production Management (w/distinction)
During his international career spanning over 28 years, leading growth strategies, business development, from Imperial College London, UK; a post-graduate
he has held various technical and leadership positions operational excellence, organization development, diploma from College of Petroleum Studies, Oxford, UK
with international oil and gas companies such as transformation and stakeholders’ management. and a BSc (w/honors) degree in Petroleum Engineering
Union Texas Petroleum, OMV Pakistan Exploration Before joining MPCL, Mr. Haider was working with from University of Engineering & Technology, Lahore,
Neptune Energy as Head of Strategy and Business Pakistan.
Development for North Africa and Asia Pacific, based
in London where he significantly contributed towards
Mr. Ali Raza Bhutta

Secretary Petroleum
Mr. Ali Raza Bhutta joined MPCL Board on December He is currently serving as Secretary for Petroleum Orakzai Agencies, development and implementation of
24, 2021. He is a Non-Executive Director and a Member Division in Ministry of Energy, Govt. of Pakistan. land records management administration systems in
of the Audit Committee. the Punjab, Secretary Local Government Department in
Mr. Ali Raza Bhutta born in 1966, is a career Civil the Punjab, Secretary Energy and Finance Departments
Servant with civil service experience spanning in Khyber Pakhtunkhwa, Secretary Benazir Income
over 32 years. He has an M.B.A. from Quaid-i-Azam Support Programme (Ehsaas) and Secretary to the
University, Islamabad and an M.Phil. in Economic Government of Pakistan in the Poverty Alleviation &
Development from University of Glasgow. He has had Social Protection, Power and Petroleum Divisions.
a varied experience in Energy, Finance and Public
administration. Mr. Ali Raza Bhutta is also on the boards of Pak-Arab
Refinery Limited (PARCO), Oil and Gas Development
He held various positions through his professional Company Limited (OGDCL), Pakistan Petroleum Limited
career including tribal administration in Waziristan and (PPL) and Government holding Private Limited (GHPL).
Mr. Abdul Rasheed Jokhio

Director General Gas, Ministry of Energy
(Petroleum Division)
Mr. Abdul Rasheed Jokhio joined MPCL Board on He had joined erstwhile Ministry of Petroleum and He has attended a number of courses in Pakistan and
December 15, 2020 representing Government of Natural Resources (now Petroleum Division, Ministry of abroad on Drilling Economics, Contracts Negotiation,
Pakistan. He is a Non-Executive Director and a Member Energy) in 2006. Since then, he has been involved in the Upstream Regulation, Gas Pipeline & LNG Imports
of the HR&R and Technical Committees. policy and regulatory matters of mid and down-stream Projects etc.
sectors of natural gas and RLNG. He oversees matters
Mr. Abdul Rasheed Jokhio is currently serving as Director such as allocation of gas/RLNG to the Government He is a professional member of Pakistan Engineering
Gas in the Directorate General of Gas, Petroleum Division, designated buyers and third parties including power Council and also a member of the Society of Petroleum
Ministry of Energy. He holds Master’s degree in Energy, and fertilizer sectors, tariff for RLNG and natural gas Engineers.
Environmental Management and Economics from ENI for retail consumers, review and execution of Gas
Corporate University, Italy, and Bachelor of Engineering Sales Agreements and Gas Pricing Agreements,
in Petroleum & Natural Gas from Mehran University of Gas Development Schemes, Gas Development
Engineering and Technology, Jamshoro, Sindh. Infrastructure Cess and Gas Development Surcharge.
Profile of Board of Directors
Syed Khalid Siraj Subhani

Oil & Gas Development Company Limited
Syed Khalid Siraj Subhani joined MPCL Board on in Billingham, UK. Over the years, he worked in (Private) Limited (Board Chairman) and Engro Eximp
October 22, 2021 representing OGDCL. He is a Non- numerous senior executive positions at Engro and Agri Products (Private) Limited (Board Chairman).
Executive Director and a Member of the Technical and played instrumental role in growth and diversification
Investment Committees. of the company to make it one of the largest business He also served as Chairman of Board Technical
conglomerates of Pakistan. Committees & Board Human Resource Committees at
Mr. Subhani is a Chemical Engineer with Executive Hub Power Company and Laraib Energy Limited.
Management Program from Haas School of Business, Prior to retirement from Engro he worked as President
University of California, Berkeley and Leadership and Chief Executive Officer of Engro Corporation Few of other engagements of Mr. Subhani have been
program from MIT, Boston. A seasoned executive, his Limited, Engro Fertilizers Limited and Engro Polymer Vice President – Overseas Chamber of Commerce
career spanned over 33 years with Exxon Chemical and Chemicals Limited. Mr. Subhani also served as & Industry (OICCI), Director – Vinyl Chloride Safety
Pakistan Limited, which subsequently became Engro President and Chief Executive Officer of ThalNova Association of North America, Baton Rouge, USA,
Chemical Pakistan Limited and later Engro Corporation Power Thar Private Limited for a period of two years. Member of Business Advisory Council – Society for
Limited. This included long term assignments with Earlier Mr. Subhani also served on the board of Engro Human Resource Management (SHRM), Member
Esso Chemical Canada in Edmonton and at ICI site Corporation Limited (Director), Hub Power Company Academic Council and Faculty Selection Board –
Limited (Director), Engro Foods Limited (Director), Sindh Institute of Business Administration Sukkur, Sindh,
Engro Coal Mining Company Limited (Director), Laraib Member Standing Committee on Environment – FPCCI,
Energy Limited (Director), Engro Fertilizers Limited Member – Pakistan Japan Business Forum (PJBF)
(Board Chairman), Engro Polymer and Chemicals
Limited (Board Chairman), Engro Vopak Terminal Mr. Subhani is currently a director on the Board of
Limited (Board Chairman), Thar Power Company Fauji Fertilizer Bin Qasim Limited (FFBL) and a member
Limited (Board Chairman), Engro Powergen Qadirpur of their HR&R Committee. He was also a member of
Limited (Board Chairman), Engro Elengy Terminal FFBL’s Board Technical and Investment Committees.
Mr. Ahmed Hayat Lak

GM (Legal Services)/Company Secretary
Oil & Gas Development Company Limited
Mr. Ahmed Hayat Lak joined MPCL Board on June He holds a Master’s Degree in Law from University
26, 2014 representing OGDCL. He is a Non-Executive of Wolver Hampton and Bachelor Degree in Law
Director and a Member of the Audit and HR&R (Honours) from University of London, United Kingdom.
Committees.
He previously served in Pakistan Oilfields Limited as
Head of Corporate and Legal Services Department.
He also worked in the National Accountability Bureau
as Advisor to the Chairman and as Consultant in the
Office of the Prosecutor General.
Mr. Adnan Afridi

National Investment Trust Limited
Mr. Adnan Afridi joined MPCL Board on March 21, 2019, and start-up situations. He has led a distinguished a degree in Corporate Law (JD, Magna Cum Laude in
representing shareholding interest of General Public career in financial services and capital markets 1995) from Harvard Law School.
(Minority Shareholders). He is an Independent, Non- including serving as Managing Director of the
Executive Director, Chairman of the HR&R Committee, Karachi Stock Exchange, CEO, Overseas Chamber Currently, he is on the Boards of Bank Al Habib Limited,
and a Member of the Audit, Technical and Investment of Commerce and Industry, Chairman of National Habib Sugar Mills Limited, International Industries
Committees. Clearing Corporation of Pakistan and Member of Board Limited, Dynea Pakistan Limited, Lotte Chemical
of Directors of Central Depository Company. Mr. Afridi Pakistan Limited, Bulk Transport Company PVT. LTD,
Mr. Afridi assumed the position of Managing has also served on the Board of Silk Bank Limited and The Kidney Centre Institute. He also serves as the
Director NITL on February 21, 2019. He has 24 years’ Gul Ahmed Textile Mills Limited. Chairman Board of Governors of The Kidney Centre
international experience in Change Management, Institute and is a Member of the SECP Policy Board.
business transformation, innovation and profitability Mr. Adnan Afridi has a degree in Economics (A.B,
enhancement in blue chip companies, public sector Magna Cum Laude, 1992) from Harvard University and
Mr. Abid Hasan

Non-Executive Director
Mr. Abid Hasan joined MPCL Board on June 24 2022, (1988-92) and Senior Financial Analyst (East Asia After retirement from the WBG, he held a number of
representing shareholding interest of General Public Region) (1975-88). positions including: Member of the Government of
(Minority Shareholders). He is an Independent, Non- Pakistan’s Economic Advisory Committee (2010-2018),
Executive Director, Chairman of the Audit Committee, During his association with the WBG, he was Member of the Boards and Chairman of the Board’s
and a Member of the HR&R Committee. responsible for relationship management with Audit Committees in Pakistan Tobacco Company
cabinet and senior policy makers, multilateral and (2007-2016), Khushali Bank (2007-2009), and Wateen
He possesses over 30 years of experience as a bilateral agencies, banks, private investors, and Telecommunications (2012-2107).
development banker and served in the World Bank media, overseeing implementation of World Bank
Group from 1975 till 2006. He served as the Operations programs for macroeconomic, sectoral reforms Currently, he is a Member of the Board of Governors
Advisor, Pakistan Program (1997-2006), Principal covering energy, banking, private, development, of two NGOs: Hunar Foundation and Chal Foundation.
Financial Sector Specialist (South Asia Region), (1992- water resources, agriculture, Infrastructure, SOEs,
97), Chief of Industry and Energy Unit, Bangladesh and social sectors.
Ms. Seema Adil

Non-Executive Director
Ms. Seema Adil joined MPCL Board on June 24, 2022, She served in Shell Pakistan for 30 years in various She is a leader focused on achieving results in highly
representing the shareholding interest of General capacities in marketing, supply, distribution, technical competitive and diverse environments that demand
Public (Minority Shareholders). She is an Independent, support, and business process re-engineering. She continuous improvement. She is skilled in building
Non-Executive Director, and a Member of the Techncial also served as a management team member and as and motivating cross-functional and cross-regional
and Investment Committees. Shell appointed Director on PAPCO Board. teams performing towards achieving corporate goals
and expectations. She is also a skilled program/project
She is a qualified Chemical Engineer and possesses Later, she served in Pakistan Refinery Limited for 3 manager.
33 years’ experience in oil & gas industry in Pakistan. years as Deputy Managing Director. As a senior
member of the refinery leadership team, She also possesses hands-on experience of
she carried direct responsibilities of corporate governance of medium to large
plant operations, oil movement, sized organizations.
commercial activities, crude
economics, pricing, HSEQ and was Ms. Seema Adil is currently a director
the Management Representative on the Board of Wyeth Pakistan limited.
ensuring ISO qualification.
Mr. Nabeel Rasheed Mr. Muhammad Sajjad

Chief Financial Officer Acting Company Secretary
Mari Petroleum Company Limited Mari Petroleum Company Limited
Mr. Nabeel Rasheed joined Mari Petroleum in June 2021 and presently Mr. Muhammad Sajjad is a Member of the Association of Chartered Certified
occupies the positon of Chief Financial Officer. Mr. Rasheed is a Fellow Accountants (ACCA) with over 23 years of diversified experience with reputable
member of the Institute of Chartered Accountants of Pakistan. national and international organizations.
Mr. Rasheed has worked in Asia, Africa and Europe specializing in financial He joined MPCL in 2015 and was appointed Acting Company Secretary on
management, commercial structures and mergers & acquisitions. He had a July 2, 2022. He brings in rich experience of Petroleum, Real Estate Development,
long association with Eni and his last assignment was as Director Finance & and Hospitality industries.
Control for a SPE established to build a 3.4 MPTA FLNG.
He has attended numerous courses and trainings in Pakistan and abroad
He brings with him 15 years of post-qualification experience and holds a on Corporate Governance, Leadership and Strategy, and Enterprise Risk
Post Graduate Diploma in Oil and Gas Law along with a MBA in Oil and Gas Management.
Management from Robert Gordon University, U.K.
Organogram
HR & R
Committee
Investment
Committee
Managing
Board of
Directors Director / CEO
Technical
Committee
Audit
Committee
Company
Secretary
Director
Admin
& Security
Director
Business
Development
& Commercial
Director
Exploration
Head
Enterprise
Director Risk
Chief Operations Management
of Staff
Head
Chief Financial Information
Officer Technology
Director
Reservoir Head
Development Supply Chain
& Management
Director
Drilling
Director
Mari Services
Division
Director
HSE
Chief
HR Officer
Chief
Legal Officer
Chief
Internal Audit
Administrative Relationship
Functional Relationship
42
,
Chairman s Review
Dear
Shareholders,
I am delighted to present this review of the financial year
2021-22 that saw Mari Petroleum Company Limited (MPCL)
further consolidating its position as a leading E&P Company
and a premier corporate entity of the Country.
Mari has a vibrant Board with What distinguishes MPCL from of Pakistan and OGDCL, and 3
four permanent Committees others is the fact that while independent directors. After the
of Audit, HR&R, Technical and delivering consistent value to election of directors, the new
Investment. The Board held its stakeholders, MPCL is also Board has been constituted
seven meetings during the playing a key role in ensuring with effect from June 24, 2022.
year to review and approve the the Country’s food and energy The permanent Committees
periodic financial statements, security which is challenged by of the Board have also been
annual budget, business plan high oil & gas prices, international reconstituted, and their TORs
and other important matters. The geopolitical situation and have been updated to ensure they
Committees also held regular the onerous macroeconomic are in-line with best national and
meetings to perform their duties challenges we face as a nation. international practices.
under their respective terms of
reference as approved by the The independent evaluation I take this opportunity to express
Board. conducted by the Pakistan my gratitude to the directors
Institute of Corporate Governance who retired during the year for
The Board provided expeditious (PICG) in FY 2020-21 confirmed their services and invaluable
support and guidance to the the Board’s effectiveness contributions towards creating a
management in robust capital and compliance with the cordial board room environment.
allocation for different projects to best governance practices. On behalf on the Board, I wish
create value in short, medium and The recommendations of the them well for their future
long-term. The oversight provided evaluators were implemented to endeavors. I also welcome the
by the Board ensured optimal further improve the governance new directors and hope that
use of resources, enhanced processes and Board operations. they will provide consistent and
transparency and disclosures, For the FY 2021-22, the Board thoughtful guidance to help the
and improvement of governance has again decided to engage organization through various
around different processes. the services of PICG to conduct transitions.
the Board evaluation and
The Company’s organizational make suggestions for further We highly value our stakeholders’
transformation program is improvement. confidence in us to lead the
satisfactorily progressing. A lean Company to greater corporate
and more efficient organizational To ensure continuous professional success. I want to assure you
structure has been introduced development of the Directors, that the Board will proactively
to foster the environment for mandatory Directors Training safeguard and promote your
delegation of responsibility Program from PICG was arranged interests.
and empowerment, cultivate a for the Directors and executives
performance-driven culture and of the Company in February 2022.
empower people to take lead in Currently, 10 out of 11 directors on As always, it is an honor to serve
delivering end results. MPCL Board and several Company you all!
executives including female
The robust financial results of executives are certified from SECP
FY 2021-22 are backed by the recognized institutes.
Company’s excellent operational
performance. To further improve the Board’s
cohesiveness and efficiency, the Waqar Ahmed Malik (SI)
The first-ever hydrocarbon number of directors on the Board Chairman
discovery in Bannu West Block has been reduced from 14 to MPCL Board of Directors
located in North Waziristan is a 11. Now the Board will comprise
milestone achievement and the 4 directors representing Fauji
Company is pursuing for early Foundation, 2 directors each
monetization of the discovery. representing the Government
44
,
Managing Director s
Outlook
Dear
Stakeholders,
I am honored to present a review of the
recently concluded financial year that
stands witness to MPCL’s continued
pursuit of business growth and value-
creation while maintaining and further
augmenting its role as one of the
Country’s top energy companies.
Energy Produced Net Sales/Net Profit Earnings Per Share/Dividend

(MMBOE) (Rupees in billion) (Rupees / Percentage)
l Net Sales l Earnings Per Share (Rs) without

l Net Profit l Dividend (%) super tax
286.88
40
95
100 300
235.71
37
35 90 270
227.23
36
34
34
73
80 240
33
72
30
247.84
182.36
70 210
59
25
1,410
60 without 180
super tax
1,240
115.25
20 50 150
41
38
40 120
31
15
30
24
30 90
61
10
60
60
33
15
20 60
5
10 30
0 0 0
2021-22
2017-18
2018-19
2019-20
2020-21
2021-22
2017-18
2018-19
2019-20
2020-21
2021-22
2017-18
2018-19
2019-20
2020-21
MPCL’s operations are of immense as soon as possible. In parallel, companies. The block provided us
significance to the Country's food SNGPL is laying the export pipeline with immediate resource addition
and energy security. This single to provide connectivity with the with upside potential. Acquisition
consideration is a constant source national grid. The production of this block is an important step
of motivation for the MPCL team commencement, however, towards realizing our long-term
to demonstrate resilience in the depends on a conducive security vision of becoming an international
face of adversity and still achieve environment, timely completion of energy company.
excellent financial and operational the transmission pipeline and fast-
results. track regulatory approvals. Our total acreage now stands at over
58,000 sq. km (29 blocks in Pakistan
One of the key highlights of the Having a sizeable inventory of and 1 block in Abu Dhabi, offshore).
year is the landmark discovery prospective blocks is pivotal
made at our exploratory well Bannu for our exploratory efforts and Besides our new exploratory
West-1 in the North Waziristan organic growth. Locally, we won efforts, there is significant room for
District. This was one of the most five new exploration blocks in the maximizing production from Mari
challenging wells ever drilled last bidding round undertaken Field. Our production enhancement
by the Company in a security- by the Government. Additionally, efforts were complemented by
sensitive environment. But it we farmed-in into Margalla Block the construction of our own 20
has demonstrated our ability to and acquired additional working inch, 25-km long cross-country gas
plan and drill challenging wells, interest in Bela West Block. transmission pipeline to connect
use advanced technologies, and Exploration programs for newly Mari Gas Field with the SNGPL
successfully apply post-well acquired blocks are being carved- network. This pipeline is a strategic
stimulation treatments to maximize out to expeditiously commence achievement that will provide
the well’s flow capacity. exploration activities. flexibility and options for maximizing
gas production from the County’s
Our aim is to put this well on early Internationally, we won a largest gas field.
production in the wider national prospective offshore block in Abu
interest and we are working to Dhabi in August 2021 as part of During the year, we also completed
install early production facilities a consortium of four Pakistani Phase-1 of Sachal Gas Processing
Managing Director's Outlook
HRL Swing Volume Project - Mari Gas Field, Daharki, Sindh Sachal Gas Processing Complex - Daharki, Sindh
Complex and achieved first gas by to prolong the life of the Field’s introducing result-oriented culture
commencing supply of 20 MMSCFD aging infrastructure is progressing and putting in-place appropriate
of gas to SNGPL. The construction well. Additionally, Mari Field systems.
and commissioning activities of revitalization studies have revealed
the Phase-II of the project along various opportunities for long-term In line with the strategic vision
with the integration of Phase-I are sustainability of Mari Field, which provided by the Board and good
progressing well to bring additional is critical for providing food and HR practices, we have already
volumes into the SNGPL network. energy security to the Country. revamped our compensation
There have been some delays policies and implemented a pay-for-
due to shipping constraints, and While focusing on the core E&P performance system to inculcate a
extremely hot weather followed by business, we did not lose sight culture of competitiveness. Need-
torrential rains, but we are making of the need for organizational based training programs within the
every effort to complete the project development. We have Country and abroad are arranged
at the earliest. implemented international best to bridge the competency gaps. We
practices in different spheres of the are also rolling out an extended
The asset integrity assessment and Company’s operations to support leadership program and dual career
maintenance campaign at Mari Field our operational achievements by ladders for technical departments
Drilling of Test Holes - Bannu West, North Waziristan

Measuring Angles and Elevation for Civil

Sachal Gas Processing Complex - Mari Gas Field, Daharki, Sindh Foundation - Mari Gas Field, Daharki, Sindh
to prepare the next generation of highest-ever mark of Rs. 33.1 billion, international service providers is
organizational leaders. showing a YoY growth of 30% and an integral part of our operational
5%, respectively. The net profit would strategy. The capability of MSD has
Our average daily production during have crossed Rs. 38 billion, had the been further enhanced by adding
the financial year crossed the six- super tax not been levied by the gravity and magnetic survey unit. For
figure mark of 100,000 BOEs for the Government. The EPS reached Rs. the first time since its inception, MSD
first time ever in the Company’s 247.8 per share from Rs. 235.7 per undertook two third-party projects
history. After building the swing share in the previous year. in addition to providing unmatched
volume capability, we now have the services for our internal projects.
flexibility to divert the undrawn HRL With the addition of around 12 MSD also saved us precious FOREX of
volumes of the power customers MMBOE in net reserves and around about USD 130 million over a 3-year
towards the SNGPL network. This 67 MMBOE in new resources, we period.
not only allows us to maximize our have achieved adequate reserves
production but also ensures that replacement, which is essential It is also a matter of great satisfaction
incremental volumes eligible for for replenishing our production. that the Company adhered to
incentive price are maximized. Net Reserves & Resources of the the highest standards of HSE and
Company now stand at 642 MMBOEs maintained an enviable record of a
Increased production and better as on June 30, 2022. safer work culture. The Company
prices drove the net sales to the stood-out amongst local and
highest-ever level of Rs. 95.1 A well-equipped and capable Mari international E&P Companies with
billion and the net profit to the Services Division (MSD) at par with regards to HSE KPIs which were
Gas Pipeline Construction - Mari Gas Field, Daharki, Sindh Separation Battery of MDCPF - Mari Gas Field, Daharki, Sindh
Managing Director's Outlook
ICCI Business Excellence Award for Top Taxpayer Company (Private Sector) - Islamabad Region (2021-22)
well within the targets and IOGP and development and succession Without their continued support,
matrices worldwide. planning. MPCL would not have been able
to operate to its fullest as it is
We also consider CSR as an I assure my worthy stakeholders now. We look forward to continue
important and intrinsic part that we will continue with the same working together with the same
of our business culture and focus and out-of-the-box strategies commitment in the best national
regularly contribute towards the to propel the Company to new interest.
improvement of the quality of heights of corporate success.
life of the people living in remote
and under-developed areas of the I want to appreciate and thank
Country. During the year, we spent our top-notch professionals and
around PKR 4 billion on our CSR committed workforce for achieving
activities. phenomenal performance over a
sustained period of time.
In the coming year, our priorities
include the completion of Sachal I am grateful to the directors, Faheem Haider
Gas Processing Complex, installation shareholders, partners, customers, Managing Director/CEO
of early production facilities at suppliers, the Petroleum Division
Bannu West-1, Mari Field plateau and other stakeholders for
extension projects, strategic their continued confidence in
exploratory wells in Bannu West, and support to the Company.
Block-28, and Margalla Block, We are indebted to our Law
and expansion of the exploration Enforcement Agencies, who,
portfolio. In addition to the despite their extensive operational
operational priorities, we will commitments, rendered whole-
continue with organizational and hearted support to MPCL and
HR transformational initiatives ensured foolproof security for us
along with the focus on training in the most challenging areas.
World Environment Day 2022 - Islamabad
Dispensary at Mari Gas Field - Daharki, Sindh
Noor-e-Sehar Special Education School

- Daharki, Sindh Signing Ceremony, Ambassador for Inclusive Education - Head Office, Islamabad
Success Stories
Significant Hydrocarbons Discovery

at Bannu West Block, KP
June 01, 2022 will be remembered interest supreme, MPCL increased Based on the seismic data
as a momentous day in the its working interest in the Block processing and interpretation,
hydrocarbon exploration history and took over the operatorship the location of first exploratory
of the Company. On that day, from TPDL in March 2017 remaining well Bannu West-1 was marked
Mari Petroleum Company steadfast to unlock the highly on ground. The well was spud-in
Limited announced a large gas prospective area for hydrocarbon on June 06, 2021 and successfully
and condensate discovery at its exploration, which could go in long drilled down to the depth of 4,915
exploratory well Bannu West-1, in way for overcoming the energy meters. During drill stem testing
Bannu West Block, located in North crises in the country. Soon after (DST), Lockhart Limestone Formation
Waziristan district of KP Province. becoming the operator, MPCL flowed gas @ ~25 MMSCFD with
showing its commitment pursued wellhead flowing pressure (WHFP)
By way of background, Bannu fast track exploration activities in the of 4,339 Psig and around 300 barrels
West Block was granted to Tullow Block including the first on-ground per day (BPD) condensate at 32/64”
Pakistan (Developments) Limited geological field activity since the choke size, before acid job. Hangu
(TPDL) in 2005. Later on, MPCL, grant of the Block, reprocessing/ Formation also flowed gas @ 1.6
OGDCL and SEL (now ZPCL) farmed- interpretation of 425 line km vintage MMSCFD with WHFP of 297 Psig
in as joint venture partners. Despite 2D data and acquisition of new
its best efforts, TPDL was unable to 99 line km 2D data. Thereafter,
commence exploration activities the Company embarked upon 836
due to challenging security situation sq.km 3D seismic data acquisition
in the area. Keeping the national campaign, which was completed in
March 2020.
at 32/64” choke size. Post acid western part of KP and opened- But this success did not come
stimulation results from Lockhart up new avenues for hydrocarbon easily. Bannu West Block is
reservoir were even more impressive exploration not only for MPCL but characterized by rough, rugged
with gas flow rates of 50 MMSCFD at also for other E&P Companies mountains and deep gorges which,
WHFP of 5,500 Psig at 40/60” choke operating in the area. The discovery coupled with constant security
size. after development will help to threat made the exploration
mitigate demand and supply gap activities a daunting task. Massive
Bannu West-1 is one of the from indigenous resources and will earthwork on hard stratum for
largest hydrocarbon discoveries add to the hydrocarbon resource preparation of the well location and
in the Country in the last many base of MPCL, JV Partners and the diversion of many seasonal water
years. It is also the first-ever gas Country. It will also help to save the channels had to be performed to
and condensate discovery in precious foreign exchange that is get the well-site ready for drilling of
North Waziristan area, which has incurred on imported petroleum well.
extended hydrocarbon plays toward products.
Bannu West-1 planned as a wild-cat

high pressure, high temperature
well posed massive technical
challenges for the exploration and
drilling teams. These challenges
were overcome with sheer
commitment and dedication of our
technical professionals under senior
managements guidance.
It is a matter of great pride for MPCL

that the seismic data acquisition
and the drilling operations
were completed by MPCL’s
own resources. This technically
complex project in a geographically
challenging and security-sensitive
area is a testament to Mari’s
technical acumen and courage of
its leadership. This achievement
demonstrates our capacity to create
value in new frontiers, thanks to
its risk-taking approach, in-house
capabilities, and always keeping
national interest at the forefront of
its decision making.
Bannu West-1 is also a story of

sacrifices. During the seismic
operations, on-ground teams
SUCCESS STORIES: Significant Hydrocarbons Discovery at Bannu West Block, KP
faced multiple terrorist attacks which

resulted in loss of precious lives and
injuries to MPCL crew members and
security personnel. The nation is
indebted to these brave men who laid
their lives for this project of national
importance.
The Company has chalked out a

comprehensive plan for installing early
production facilities to bring Bannu
West-1 gas on-stream as soon as
possible. For this purpose, availability
of rental processing plant is being
explored. The Honorable Prime Minister
of Pakistan has constituted a Steering
Camp Site, Bannu West, KP
Committee to oversee the laying of
the pipeline on war-footing basis to
connect the Bannu West-1 Well with
the national pipeline network and
development of production facilities.
MPCL’s activities have already

made a positive economic impact
by generating business and job
opportunities for the locals in this
remote, far-flung and under developed
area. Commencement of production
from Bannu West-1 will not only benefit
the Company but will also change the
fortunes of the local populace and the
shape of this entire region.
The story of Bannu West-1 will be Vibroseis Trucks at Bannu West Block, KP
incomplete without highlighting the
role played by two of the former
MDs of MPCL in this success. It was
Lt Gen Nadeem Ahmed (Retd) who
decided to acquire more working
interest in this strategic Block and
take-over its operatorship, while Lt Gen
Ishfaq Nadeem Ahmed (Retd) (Late)
executed and oversaw the seismic data
acquisition project in the Block.
MPCL is thankful to its Joint Venture

Partners, Federal and Provincial
Governments, Pakistan Army and FC for
their support in achieving this feat and
hopes that this discovery ushers in an
era of development and prosperity for
the residents of this area. Seismic Data Recorder - MSU
Chairman Board and MD MPCL's meeting with the Prime Minister to discuss Bannu West-1 way forward
Celebration of Bannu West-1 Discovery at MPCL Head Office Celebration of Bannu West-1 Discovery at FF Head Office
Success Stories
Expansion of Exploration Acreage

Adding Prospective Blocks to Portfolio
National Operations Discovery of new oil and gas term sustainability. The Company
deposits is one of the primary pursues different strategies to
• Concessions and D&PLs Area:
pursuits of every E&P Company, expand exploration acreage to add
52,028 Sq. Km
and is crucial for its sustainability prospective blocks to its portfolio.
• 28 Exploration Licenses
and future growth. Success of
• 13 Development & Production Exploratory efforts, at large, depend Using its in-house capabilities,
Leases
upon availability of prospective the Company regularly carves out
International Operations acreage. MPCL is fully cognizant prospective blocks and submits
• Offshore Block-5, Abu Dhabi that having a sizeable inventory of applications over them to the
prospective blocks is imperative to DGPC for future block bidding
implement its aggressive exploration rounds. It then actively participates
program to achieve an adequate in the bidding rounds arranged
reserve replacement ratio and long by the Government from time to
Blocks Won in Bid Round 2022

time. Sometimes, it engages other Operator JV Partner(s)

S.No Block Province
reputable E&P companies for joint (Working Interest) (Working Interest)
bidding over blocks. The Company Bid Round 2022
also evaluates prospective blocks of 1 Dadhar Balochistan MPCL (40%)

PPL (30%)
UEPL (30%)
other E&P Companies for acquisition
PPL (30%)
of share in line with Corporate 2 Mach Balochistan MPCL (40%)
UEPL (30%)
objectives. 3 Kalat West Balochistan PPL (50%) MPCL (50%)
4 Sui North Balochistan PPL (50%) MPCL (50%)
The Company’s strategy for
5 Meeranpur Punjab UEP (50%) MPCL (50%)
acquisition of new blocks has been
Bid Round 2020
quite successful in last two years,
POL (32%)
wherein; it added 10 new exploration 6 Nareli Balochistan MPCL (39%)
Spud Energy (29%)
blocks to its portfolio by way of 7 Sharan Balochistan MPCL (60%) OGDCL (40%)
participating in the bidding rounds.
8 Killa Saifullah Balochistan OGDL (60%) MPCL (40%)
Four blocks were won in bid round
9 North Dhurnal Punjab POL (60%) MPCL (40%)
2020 while 5 blocks in bid round
Farm-in
2022. One Offshore Block in Abu
Punjab/ICT/ MOL Pakistan MPCL (30%)
Dhabi was won by a consortium 10 Margala
KPK (40%) POL (30%)
of Pakistani E&P Companies on a International Acquisition
competitive bidding. Working interest MPCL (25%)
in one more block is being acquired 11 Block-5 Abu Dhabi PPL (25%) OGDCL (25%)
GHPL (25%)
through farm-in opportunity.
Blocks Won in Bid Round 2020

MPCL Reserves & Resources

An estimated 12 MMBOE to a Reserves Replacement Ratio and access project. The resource
net MPCL proved and probable (RRR) of around 32% during the changes also include revision of ~12
reserves have been added during year. MMBOE resources which have been
FY 2021-22. Primary contributors progressed to reserves as a result
included progression of contingent In addition, MPCL added net of new developments. Overall, these
resources to reserves as a result of contingent resources of ~ additions and revisions resulted in
bringing new discoveries of Hilal, 55 MMBOE during the fiscal year. an increase of around 345% in the
Iqbal, Bolan East, Togh, Bashar The main contributors to the contingent resources compared to
X-1 and Benari on commercial resource addition included a new the start of fiscal year 2021-22.
production. These additions equated gas discovery in Bannu West Block
Estimated Proved + Probable Reserves Estimated Contingent Resources

(2P) MMBOE NET (2C) MMBOE NET
Proved and Probable (2P)

Reserves denote the best estimates
of reserves to be commercially
recoverable from known reservoirs
under defined economic conditions,
operating methods, and government
regulations.
Contingent (2C) Resources denote

the best estimate of contingent
resources to be potentially recoverable
from known accumulations by
application of development projects,
but which are not currently considered
to be commercially recoverable owing
to one or more contingencies.
(Reference: SPE Petroleum Resources

Management System, June 2018)
Discussion on Reservoir Modeling and Future Development - Head Office, Islamabad

Risks and Opportunities Report

MPCL recognizes that its ability to within the organization. The Audit and effective oversight on company’s
manage risks across the organization Committee through the Internal Audit risk practices. The Department also
is central to the success of its Department also provides assurance has the important role of facilitating
business and the continuous delivery of the effectiveness of ERM in the business decision-making process
of value to its stakeholders. The organization to the Board. for the management. This involves
Company, therefore, supports a equipping the management with a 360°
comprehensive Enterprise Risk The Committee further provides view of the risks and opportunities
Management program aimed at the necessary link between ERM, attached with the decision at hand
proactively identifying and mitigating strategy and performance and so that they are able to make risk-
risks that can threaten its targeted further strengthens the integration informed decisions, resulting in outputs
business model, future performance, of risk management within business with limited potential for surprises. A
sustainability and capital availability. functions. robust ERM programme in the Company
also ensures that the Company unlocks
ERM Policy Enterprise Risk Management the true value of ERM, which includes
MPCL’s ERM Policy establishes Framework contribution in business performance,
the basis for management and MPCL’s Enterprise Risk Programme achievement of organizational
governance of risks faced by has been developed in line with the objectives, resilience and adherence to
the Company, outlines minimum Risk Management Guidelines in ISO corporate governance standards.
expected standards, and practices 31000:2018. Its architecture in the
that the Company should have in Company also complies with the To fulfill this objective MPCL’s ERM
place to manage enterprise risks Institute of Internal Auditor’s (IIA) process is applied at both the
within defined risk appetite. ‘Three Lines of Defense’ model, Departmental level of the organization
ensuring assurance at all levels of and at the Enterprise level. This
Board’s Efforts for Determining the risk management. A dedicated ERM approach recognizes that risks
Company’s Level of Risk Tolerance Department facilitate the Board’s are different at varying levels of
The Company’s Board is responsible Audit Committee to have an efficient management due to the different focus,
for providing strategic oversight
and is also responsible for ensuring
that a sound risk management and MPCL Risk Environment
internal control system is in place.
Listed Companies (Code of Corporate
Governance) Regulations 2019 Corporate
also reiterate this requirement and
MPCL Risk Profile
assign the overall responsibility for
governance of the company’s risk to
the Board. Departmental Risk Environment
The Board's Audit Committee
facilitates the Board in discharging
Depart- Department Risk
this responsibility. ment Registers
The Audit Committee ensures that an
appropriate control environment is Operations Risk Environment
established and maintained, covering
the Company’s operations, strategy,
finances, reporting and compliance Dept. Sub-Unit Department
activities. This is further driven by
Operations
(business and
Sub-Unit
identification of risks and alignment functional),
Programmes/
RCSA*
of risks appetite and tolerance Projects *Risk Control Self
levels to strategic and departmental Assessment
targets, bringing to view the
essence of the applicability and
benefits of formalized ERM process
strategic vs. operational, differing levels of the organization to give Assessment of the Principal Risks
tolerances for risk and levels of assurance that no significant risk facing the Company
management authority to deal with has been missed out. The Board carries out periodic
unacceptable risks. This MPCL ERM assessment of the principal risks
hierarchy is outlined in the schematic. l Risk identification encompasses faced by the Company, including
review of MPCL’s internal and those that would threaten its
This hierarchy directs the escalation external risk environment for business model, future operational
of risks between the different levels changes that can affect MPCL’s and financial performance, and
of the organization and facilitates risk defined Strategic and other solvency and/or liquidity issues. The
reporting requirements. Business objectives. Furthermore, Board also reviews the risk mitigation
review takes both forward-looking strategies proposed/adopted by the
Risk Management Framework in view (to try to identify what could Management, provides guidance and
MPCL comprises of an inclusive happen) as well as a historic view accords approval where required. ERM
process with the philosophy that (to look backwards as a means of Department reviews and prepares
respective domain heads are identifying what could happen and update of Enterprise Risk Profile of
primarily responsible for all the how likely it is). the Company consisting of various
risks in their domain. Key aspects of strategic, compliance, operational and
the risk management framework/ l Risk assessment and analysis financial risks on quarterly basis. The
methodology can be summarized as involves the consideration of update is also presented to the Board/
below: causes of risk events and their Board Committee on a periodic basis
uncertainties, their positive or as and when required. The ERM
l The Company’s risk management and negative impacts, and the department also prepares periodic
strategy is to create a positive likelihood that those impacts can compliance status update of the Risk
risk culture throughout the occur. Consideration is also given Appetite and Tolerance Statement for
organization and to integrate to identify the control measures the Board/ Board Committee.
risk management into activities that act to prevent risks and
at all levels of organization from control measures that act to Key Risks Faced by MPCL
strategic planning to business unit mitigate the impacts. A brief account of key risks faced by
processes. the Company along with an assessment
l Risk treatment comprises of of its likelihood & magnitude and an
l The approach employed in MPCL measures and strategies that overview of mitigation strategy is
for risk management ensures that can include actions aimed at presented below:
risks are identified in both a ‘top- terminating (avoiding), optimizing
down’ and a ‘bottom-up’ manner (mitigating), transferring or
from the various management retaining risk (tolerating).
Seismic Activities in Ziarat Block - Balochistan

A. Strategic Risks l Evaluation of shallow offshore in injuries, deaths, disruption of

Internal prospects to identify potential operations and associated losses.
l High dependency on Mari Field: areas, within Company’s risk
Reservoir failure/security issues appetite, as targets for future External
in Mari Field could affect the long- exploration activities. l Challenges of precarious security
term sustainability of the business. situation, difficult terrain, extreme
l Active scanning of domestic weather conditions, lack of basic
l Impending production decline farm-in opportunities to enhance infrastructure at remote and
from Mari Field due to natural exploration acreage. frontier regions locations where
depletion could result in loss the Company operates or holds
of conventional, as well as l In view of the limited indigenous working interests.
incremental price revenue. hydrocarbon potential, the
Company is also evaluating the l Challenges in maintaining optimal
l Challenges in achievement of strategy of farm-in opportunities production levels at Mari Field due
adequate resource addition on a in overseas exploration and to fluctuating customer off-takes.
consistent basis. producing assets to augment
its reserves base and achieve l Breach of digital security
l Delay in commercialization of sustainable future growth. compromising the Company’s
existing discoveries affecting cyber security and/or technology
achievement of organizational l Efforts are underway to extend resilience with loss or misuse
objectives. current plateau period of existing of data or sensitive information,
reservoirs. business/production disruption.
External
l Fast emerging new technologies, l Apart from efforts in core l Disruption in company's production
trends and regulations that may business, the Company is also operations, processes and
gradually replace the use of fossil actively seeking near core activities/projects due to COVID19
fuels. diversification opportunities to related factors.
augment and act as a hedge for
Likelihood & Magnitude: our core business. Likelihood & Magnitude:
Strategic risks are both internal Operational risks are inherent to the
and external in nature with the l MPCL strives to hire the best E&P sector and can never be fully
potential of threatening our future human capital available in the avoided. Due to the nature of such
business model and growth targets industry and is continuously risks, the magnitude and likelihood
in the short, medium and long term. working towards the development varies and the management actively
The magnitude and likelihood of of their technical skill sets through works on new and improved control
each such risk is closely monitored extensive training development. and mitigations to maintain the
and reviewed periodically by the It further encourages and likelihood and magnitude within the
management and is reported to the facilitate them to utilize state-of- agreed tolerance levels.
Board. Appropriate mitigation plans the-art technology. This allows
are devised to keep the likelihood development of intellectual Mitigation Strategies:
and magnitude within the agreed capital within the Company and l Multi-tier security arrangements
tolerance levels. ensures that the human capital along with continuous coordination
remains abreast with and adopts and engagement with relevant
Mitigation Strategies: state-of-the-art techniques and LEAs to ensure safety of personnel
l Exploration lead growth strategy concepts in all aspects of the and assets in the security sensitive
to enhance Company’s resource business. areas.
base and attaining sustainable
future growth in production and B. Operational Risks l The Company follows best
revenues. Internal industry practices vis-à-vis use
l Probability of major accidents of technology, due diligence
l Active participation in domestic due to natural causes, aging in decision-making and strict
bidding rounds for exploration infrastructure, human error or compliance with HSE standards
acreage enhancement. negligence, which can result and practices.
l Development and implementation of appropriate action plans, of gas/condensates from new

of comprehensive Asset Integrity where required, to deal with the discoveries depriving the
Management System identified challenge effectively. Company of early revenues.
l HSE related evaluation of C. Regulatory & Compliance Risks Likelihood & Magnitude:
contractors during award of new External Regulatory and Compliance related
contracts l Current economic situation/strict risks are extraneous in nature and
foreign exchange regulations have the ability to significantly
l Development of pipeline inhibiting Company's ability impact the Company’s business
infrastructure for sale of excess/ to capitalize on profitable model. Likelihood and magnitude of
underutilized production volumes opportunities outside Pakistan each risk is closely monitored due
to swing customers to its potential high impact on the
l Adverse impact on long- Company. These are periodically
l Information Security Management term strategies and business reported to the Board for effective
System 27001:2013 certification performance due to unfavorable/ planning.
and its strict compliance. unanticipated changes in
government regulations (fiscal/ Mitigation Strategies:
l Proactive identification of regulatory/tax). l The Company keeps a close
COVID-19 related disruptions watch on changes in regulations
in company’s processes/ l Delays in requisite approvals from and promptly adjusts its business
supply chain and development the Government in allocation strategy and operations to
Gas Flow Adjustment - Halini Oil Field, Karak Block, KP/Punjab

take advantage of the offered

incentives. Furthermore,
maximum efforts are undertaken
to protect Company’s business
interest from adverse regulatory
changes through representations
at appropriate forums, as and
when needed.
l Continuous follow-up with

concerned authorities for approval
of foreign investments when
required.
D. Financial Risks
External
l Risk of unfavorable fluctuations in
reference crude prices compared
to planning assumptions.
l Credit risk/ slow-recovery of

receivables due to systematic
inter-corporate circular debt issue
resulting in challenges in liquidity
and working capital management
for the Company.
Likelihood & Magnitude:

The Company has a strong liquidity
position with adequate equity capital
for both medium and long term in the
form of sufficient retained earnings
after distribution of dividend to
shareholders. This acts as a cushion
to absorb any potential adverse
impact in cash flows. Furthermore,
the financial projections indicate
adequacy of the capital structure for
the foreseeable future. The Company
plans to meet its entire financing
requirement during the next year
through available reserves and
internal cash generation, however,
borrowing from banks can be
evaluated, if required.
Mitigation Strategies:
l Actions aimed at improving the
financial resilience , flexibility (in
terms of investment decisions)
and efficiency (capital discipline
and action on structural costs) of
the company to deal with lower Zarghun South Gas Field - Balochistan
than expected oil price scenario shallow offshore potential for term allows MPCL to enjoy a greater
or low oil price over an extended opportunities having associated degree of operational freedom
period of time scenario. risk which is within the appetite of and flexibility in the pursuit of its
the Company. This can potentially diversification plan. The Company
l Active scanning of diversification expand the prospect inventory can readily raise sufficient debt
opportunities in related business of the Company greatly and can capital when needed at the most
for portfolio optimization in order contribute towards its growth in the competitive terms.
to hedge low oil price shock risk longer term.
l Incremental pricing incentive for
l Active follow-ups at appropriate l Capacity enhancement of Mari HRL & Goru B Gas presents the
levels are kept to ensure timely Services Division through initiatives company with an opportunity
payments of government related like acquisition of drilling rigs, mud wherein profits can be maximized
dues and company’s receivables. logging unit, directional drilling if the production volumes are
etc. shall allow the Company an enhanced, with no damage to the
Key Opportunities for MPCL opportunity to explore security reservoir.
MPCL is currently pursuing sensitive but high potential areas
opportunities to create value in in the wider national interest. With Creating Value from Opportunities:
the short, medium and long term enhanced capacity and proven The Company has processes in
through identification of potential record of accomplishment, MSD place to actively seek and evaluate
areas of investment associated with would be able to offer its services potential investment and diversification
its strategic objectives, policies and to other E&P companies operating opportunities. The Company’s strategic
targeted growth. in the country. business plans are accordingly
reviewed under guidance of the Board
l Offshore exploration in Pakistan l With a significant reserve base to ensure that identified opportunities
is a relatively lesser-explored along with a strong equity and cash come to fruition and adequately
front. MPCL is actively evaluating position for both medium and long contribute towards value creation and
achievement of the Company’s vision.
MD's Visit to Bannu West Block, KP

Strategic Business Plan and

Resource Allocation
The core business has been the medium to high risk- high reward l Drilling of development wells to
focus area of management’s prospects. Achievement of 100% ensure the plateau extension.
business strategy which include reserve replacement ratio is the
optimizing the hydrocarbon cornerstone of medium-term l Prioritize projects for monetizing
production from existing fields and strategy, which the company is the discoveries awaiting
increasing exploration acreage in committed to achieve through its commercialization due to
the pursuit of new hydrocarbon local and international exploits. technical constraints.
discoveries. In parallel, evaluating Diversification will be another area
l Coordination with the customers
the diversification opportunities of interest focusing on renewable
to plan their annual turnarounds/
mainly in energy value chain shall energy projects.
continue to be an important driver shutdowns to ensure optimal gas
of business strategy. production.
Long-Term (7 - 10 years)
The company will optimize its l Timely implementation of the field
Short-Term (1 - 3 years) assets portfolio to realize its vision development projects.
MPCL will optimize production in the long term. We will keep
from its existing discoveries and pursuing high-ranked local and
pursue early commercialization of international prospects matured B. Revenue Enhancement
projects . The company will initiate during short and medium terms. l Evaluate investment opportunities
seismic projects and drilling of Our diversified investments in in mid and downstream energy
wells in growth areas to tap large energy sector projects will realize projects, e.g., renewables,
prospective resources. MPCL will added revenues, making MPCL one infrastructure, terminals, oil
also initiate work to realize its of the country's largest sustainable storage, and pipeline projects for
long-term objective of becoming a energy producers. vertical business integration.
truly integrated energy company
by concluding diversification l Deliver a more significant
Management Strategies to
deals in energy and associated shareholders' value by leveraging
meet the objectives earnings to improve future
infrastructure.
A. Production Enhancement revenues and maximize returns
Medium-Term (3 - 6 years) on an accelerated timeline.
The Company ensured
The company will focus on Every opportunity, aligned with
uninterrupted gas supplies from
frontier regions for exploring its business strategy, will be
Mari and other fields through:
exploited to increase revenues and l Effective collaboration with law

grow cash flows more quickly with a enforcement agencies to ensure
competitively lower unit cost. safety of personnel and assets in
security sensitive areas.
l Identification and tapping of
new exploration prospects l Adherence to highest HSE
within existing fields to generate standards and practices at all
additional revenues using available employee levels and locations.
infrastructure.
l Engagement of locals through
l Effective funds utilization. provision of jobs and business
opportunities and high impact
C. Exploration Strategy Social Welfare Projects.
l Pursue high-ranked international l Adoption of latest technology and
opportunities that expand our continuous improvement of internal
portfolio beyond the national processes.
boundaries.
l Accelerated exploration and drilling Key Performance Indicators

campaigns in operated blocks. In order to ensure achievement of
corporate goals within stipulated
l Expansion of exploration acreage time-frame, Management
through farming in highly Control System (MCS) has been
prospective blocks and participation implemented. Besides monitoring
in future bidding rounds, within the corporate performance under each
country and abroad. corporate objective, a set of “look-
behind” Key Performance Indicators
l Undertaking projects in security
(KPI) covering a larger spectrum of
sensitive but highly prospective
performance measures, is also used
blocks.
to study the overall performance of
l Re-balance portfolio by acquiring a the Company.
working interest in potential blocks
The formulation of the business
and farming-out working interest to
plan draws input from the preceding
reputed companies in our operated
year’s performance on the KPIs listed
blocks as part of the risk- sharing
below:
strategy.
1. Finding and Development Cost
per BOE of new reserves added
D. Cost Cutting/Budgetary Controls
l Utilization of in-house expertise and 2. Reserves Replacement Ratio (%)
resources, wherever possible. 3. Exploration success rate
l Fiscal tightening measures without 4. Drilling cost per meter
affecting the productivity.
5. Production cost per BOE
l Negotiated savings in procurement produced
of goods and services. 6. Production growth (%)
7. EBITDA per employee
E. Operational Strategy
l Capitalize on our strengths and 8. Reserve growth rate (%)
capability of operating in challenging
and security-sensitive areas of
Pakistan, which are less explored
and potentially may offer higher
returns.
Strategic Business Plan and Resource Allocation
Block 28, Balochistan Seismic Activities - Taung Block, Sindh
Major Plans and Decisions Currently, seismic data acquisition contribute significantly towards the
is in progress in Block-28 and GDP. The energy industry has seen a
A. Corporate Restructuring Taung. The Company plans to drill significant shift in its demand-supply
The Company is performing 9 exploration / appraisal wells in trend due to increase in the adoption
exponentially well in all spheres operated blocks in the coming of renewable energy sources and the
of its operations. With a robust year. growing trend towards alternative
balance sheet and strong energy sources as significant
operational cash flows, there The Company is continuously contributor for fulfilling consumers
are no plans for organizational evaluating acquisition of energy requirements. Though such
restructuring. additional exploration acreage shifts may cast an unfavorable
through active participation in the spotlight upon oil and gas companies
B. Business Expansion – block bidding rounds as well as but since Pakistan is an energy
Core Operations: through farm-in opportunities deficient country and renewable
The Company has been energy sources are not able to
substantially enhancing its C. Discontinuation of Operations support base load energy supply,
exploration and development The Company has no plans to therefore inclusion of alternative
portfolio and spent Rs. 51 billion discontinue any of its major energy sources in consumers’ energy
on exploration and prospecting operations. basket may not have any significant
new hydrocarbon resources impact in the coming decade.
during FY 2021-22. Significant Changes in
Objectives and Strategies from Demand for oil and gas in Pakistan
To achieve optimal production the Previous Year generally follows a seasonal trend
from HRL reservoir, two The Company’s main areas of i.e. demand for natural gas increases
compression batteries and a focus are the same as those in the in winter mainly due to space and
dehydration unit were procured, previous year, however, the targets water heating requirements and
installed and commissioned are revised in line with the strategic demand for oil increases in summers
on fast-track basis at CMF-II to priorities set by the management for due to increased requirement of fuel
inject up to 50 MMSCFD gas into the FY 2022-23. for power generation. Therefore,
SNGPL system. An agreement the Year-to-Year demand-supply gap
was put in place to supply gas Effect of Seasonality remains almost constant throughout
to SNGPL through PFL’s pipeline on Business in Terms of the year. Seasonality has limited
under Third Party Access Production and Sales impact on the operations of MPCL as
Arrangement. This arrangement Today, oil and gas companies form a most of its customers are fertilizer
has offered a flexibility to ensure vital part of the global economy and companies having stable gas demand
continued gas production when
any of MPCL’s existing customers
are unable to off take allocated
gas volumes.
Seismic Activities - Block 28, Balochistan

MPCL's Position in Petroleum Value Chain

E&P Allied Services
• Seismic Data Acquisition and Processing • Drilling Rigs & Services • Other Wellsite Services
UPSTREAM MIDSTREAM DOWNSTREAM
01 02 03
Mari Petroleum Pipelines, Tankers Oil, Gas, Petroleum

Company Limited Products Marketing and
Supply gas directly to those on Distribution Companies
its System Customers/Consumers
Fertilizer Plants
Power Generation Plants
Commercial Entities
year around and only small volume Hydrocarbon Reserves: The especially in security-sensitive areas
of the gas is being supplied to Company has substantial and geographically challenging
power sector and national grid hydrocarbon reserves to meet its terrains. The Company further
which is more prone to seasonal long-term supply commitments. augmented these capabilities by
trends. As of June 30, 2022, the Company acquiring two more land drilling rigs
had reserves of 570.8 MMBOE. The and a mud logging unit during the
The Company is continuously Company has the second highest FY2022.
evaluating acquisition of additional reserves base in the Country.
exploration acreage through Active Concerted efforts are being made Reputational Resources: MPCL
participation in the block bidding to maintain reserves replacement is one of the premier corporate
rounds as well as through farm-in ratio at 100% to ensure the long- entities in the Country. The
opportunities term viability of the Company. Company’s corporate image and
market reputation, reliability, and
Company’s Most Financial Resources: The relationship with its customers,
Significant Resources Company had Rs. 130.9 billion in suppliers, JV partners and local
The Company’s most significant shareholders’ funds at its disposal communities etc. are quite valuable
resources include the following: as of June 30, 2022. A strong for its corporate success.
balance sheet allows the Company
Human Capital: The Company has a greater flexibility to pursue Resource Allocation
a dynamic and diverse workforce expansion and diversification At MPCL, strategic planning and
contributing to the exceptional opportunities. budgeting are interlinked and
performance and growth of integrated for optimum allocation
the Company. The Company’s E&P Allied Capabilities: In-house of resources. The allocation of
workforce is gradually expanding seismic data acquisition, processing resources for various activities is
in line with its growing operations. and drilling capabilities at par with driven by the priority set in the
Further details on the Company’s international standards provide the Strategic Business Plan of the
human resources can be found in Company with greater flexibility Company. Accordingly, the Company
the HR section of this Report. and assurance of required services has allocated the maximum amount
of budget for development projects,

followed by exploration activities.
Apart from financial capital, other
resources, particularly human
resource are also allocated in line
with corporate objectives and
targets for short, medium and long
terms. Accordingly, most of the
growth in the Company’s human
capital has been in Operations,
Reservoir, and Mari Services
Departments in consonance
with the expansion of these core
operations. There is a proportionate
increase in human capital in finance,
procurement and administration
departments to provide expedient
support to the core functions. impact of change in the government MPCL is also pursuing diversification
policies, MPCL maintains a cordial opportunities in the near-core and
and professional relationship with all non-core business areas where
its stakeholders in the value chain renewable energy (wind, solar and
Organizational so as to shape up the opinion for hydro) and energy infrastructure
Overview positive changes in policies which

can be leveraged to the benefit of
projects are the primary focus of
interest.
the each stakeholder.
Significant Factors affecting Social Environment: MPCL’s
the External Environment and Economic Environment: Oil and gas operations are directly affected by
Organizational Response are extremely volatile commodities. the social environment with regards
Like other organizations, MPCL's Any change in economic to the local inhabitants of the areas
operations are susceptible to the environment has a potential where Company undertakes its E&P
changes in external environment impact on the Company’s financial activities.
which are ably managed by performance and stability. Oil price
employing various strategies as volatility was on full display during MPCL Response: MPCL is not just
explained below; recent times due to various factors cognizant but also sensitive to
including OPEC quota restrictions, the needs of the local population
Political Environment: The socio- sanctions on Iran, dwindling demand inhabiting its areas of operations.
political landscape is a combination for oil due to economic slowdown The company strive to align itself
of risks and opportunities. The caused by COVID-19 and most with the demands of the locals for
company operates without any recently Russia's invasion of Ukraine, the social uplifting and economic
political affiliations, but any change which pulled some three million development. The company
in the political climate vis-à-vis barrels a day of Russian oil from understands and accustoms itself
its policies is sure to affect the global supplies. with local norms and traditions
company business operations. while engaging the communities
MPCL Response: A dynamic and involving them not just in the
MPCL Response: MPCL is a key portfolio becomes almost a employment opportunities, but also
player in ensuring the food and necessity for financial stability in in the process of on boarding them
energy security of the country volatile markets. The company before commencing operation. This
which requires elaborate integration proactively aligns itself with the instils a sense of goodwill in the
amongst itself and its customers market through its ever evolving hearts and minds of the communities
such as fertilizer and power growth strategy for enhancing thus enabling the Company to fulfil
producers. Any change in the production and efficient use of its CSR objectives in a fruitful and
government’s policy towards any its resources. In order to achieve long-lasting manner while ensuring
of these players has an impact on this, Company is actively pursuing healthy social environment for its
each of them. In order to overcome opportunities both in national and employees.
such challenges and minimize the international markets. In addition,
Technological Environment: E&P

is a technology driven industry. New
technologies can enhance chances
of success, reservoir recovery,
and help unlock the potential of
unconventional resources. Efficient
use of technology can help reduce
the costs and bring in more
productivity in operations.
MPCL Response: Technology has

shaped and will continue to shape
E&P industry in many ways. Recent
technological advancements have
enabled the industry to find and
develop oil and gas resources at
much lower costs than before
and recover more from existing amongst the management’s top legal, commercial and technical
reservoirs. In accordance to this, priorities and all possible measures professionals thoroughly review all
MPCL constantly keeps itself are taken to identify the risks agreements and contracts before
abreast with advanced/current involved and their mitigation plans finalizing to shelter the company
technologies to further increase before undertaking any project. from any techno-commercial,
chances of success, reduce MPCL management is fully aware of financial or legal exposure.
costs of finding and producing the level of risk that E&P activities Furthermore, the Company’s in-
hydrocarbons and improving pose to life, nature and reputation. house legal team is well-versed
recovery factor. Technological Any incident of minor negligence and able to handle all legal matters
advancement has also allowed to can have catastrophic impact not and potential litigation whether it
tap unconventional resources that only on the environment but also be with any party. Where needed,
were earlier unfeasible to explore, on company’s operations and external legal counsels are also
drill and produce. Moreover, MPCL reputation. Therefore, management engaged to support the Company to
also employs latest technologies takes all the requisite monitoring deal with legal matters/issues.
for gaining access to advanced reviews, studies and coordinates
information data to develop its with the relevant government MPCL Response: In-house
processes and improve upon its bodies on environment and legal, commercial and technical
mechanical efficiencies. agencies as well as JV partners for professionals thoroughly review
seamless implementation of the all agreements and contracts
Environmental Factors: Finding relevant policies and SOPs. Being a on behalf of the Company to
and producing oil and gas has responsible eco-friendly company, shelter the company from any
several ecological effects which MPCL is currently evaluating techno-commercial, financial or
include air and water pollution, implementing projects, through its legal exposure. Furthermore, the
damage to land and loss of life due own investment, that may allow the Company’s in-house legal team is
to oil spills, gas leakages, accidents Company to reduce its operational well-versed and able to handle all
or fires etc. These environmental carbon foot print (Scope-1 & legal matters and potential litigation
impacts need to be meticulously Scope-2) to a large extent. The whether it be with any party. Where
identified, managed and mitigated. company is also aggressively needed, external legal counsels are
engaged in tree plantation drives in also hired to support the Company
MPCL Response: Environmental and around its areas of operations. to deal with legal matters/issues.
stability is amongst the top At Mari Field, Daharki, MPCL is
millennium development goals making efforts in the form of Analysis of the Company’s
set by the UN and the World Bank. planting multiple forests using the Current Performance
This priority cascades into MPCL’s Miyawaki Forestation technique. Vis-À-Vis Targets
business plan as we pride ourselves Over 45,000 trees, sub-trees and The Financial year 2021-22
as being socially aware and shrubs have been planted. witnessed an extraordinary upsurge
environmentally responsible given in petroleum prices. It was a prolific
the nature of our business. HSE is Legal Environment: In-house year for the company both in terms
of revenues and profitability. Other was 51.63 BCF as compared to operations. The Company is
performance parameters also 42.50 BCF produced in the last evaluating and conducting due
followed a progressive trajectory. year. diligence of various projects and
MPCL also boosted its production plans to invest in those projects
during the year which contributed Expansion of Exploration subject to their economic feasibility
in bridging the energy demand Acreage: MPCL was provisionally and requisite government
and supply gap of the country. awarded five new exploration approvals.
blocks in Pakistan by the
A. Core Activities Directorate General of Petroleum C. Financial
Seismic Activities : The Concessions (DGPC) in the Block Gross Sales reached the highest
Company carried out seismic data Bidding Round held in March2022. ever level of Rs 108.97 billion from
acquisition activities in several MPCL will be the operator in Rs 82.69 billion last year. Similarly,
blocks. Mega seismic campaigns Dadhar and Mach Blocks with Net Sales reached unprecedented
were completed by MSU crews, working interests of 40% with level of Rs 95.13 billion from Rs.
in highly challenging and security PPL and UEP having 30% working 73.02 billion during last year. The
sensitive areas. Based on interest each. MPCL will hold 50% impact of increase in Net Sales
processing, interpretation and working interest with PPL in Sui was reflected in Net Profit which
integration of acquired seismic North and Kalat West blocks in jumped by 5% to reach Rs 33.06
and G&G data, a number of high Balochistan as non-operator, while billion compared with Rs 31.44
potential exploration wells are it holds 50% working interest billion of the last year.
planned to be drilled during the with UEP in Meeranpur Block in
FY 2022-23. Punjab. Earnings Per Share also increased
to Rs 247.84 from Rs 235.71. After
Drilling Campaign: The Company B. Diversification payment of final dividend, total
drilled 9 exploratory wells during The Company is constantly dividend to the shareholders will
the FY 2021-22. In addition, evaluating potential means / amount to 1240% (Rs 124 per
exploratory well Sundha Thal diversification opportunities in share) for the year. The Company
(Kalchas Block) is in progress and near-core (within energy value maintained its distinction of
is expected to be completed in chain) and non-core sectors to being the most cost effective E&P
FY2023. Whereas 4 wells were mitigate crude oil price risks Company in the Country with
drilled in company’s non-operated and to add value to the core operating expenses around 16%
blocks by JV partners.
New Hydrocarbon Discoveries

and Reserves Addition: The
Company made a large gas/
condensate discovery in Bannu
West-1 exploratory well in Bannu
West Block during the financial
year. In non-operated blocks,
MPCL’s JV partner OGDCL made a
gas discovery at exploratory well
Kaleri Shum-1 during the financial
year. Evaluation of Kaleri Shum-1
discovery is in progress.
Production of Hydrocarbons:
The Company produced a total
of 36.9 MMBOE, as compared to
35.87 MMBOE produced during
last year. The Company was
able to maintain incremental
production from HRL Reservoir as
per plan and the total
incremental production of gas Session on Procurement
Fuel Gas Package - Sujawal Field, Sindh Celebrating Successful Completion of Seismic Project in Taung Block, Sindh
of the gross sales. The Company against the target of 0.32, whereas
reduced overall administrative costs Total Recordable Case Frequency
by 26% against the target of 10%. (TRCF) was 0.12 against the target
Similarly the Company was able of 0.43. Process Safety Event Rate
to ensure that at least 90% of the Tier 1 was 0.00 against the target of
cash calls from JV partners were 0.24. Process Safety Event Rate Tier
collected. 2 target was 0.48 and the Company
managed to achieve 0.09.
D. Internal Processes
The Company continuously CSR: The Company contributed Rs
improved its internal business 4.15 billion for social welfare and
processes and successfully community development during the
implemented: year, as compared to Rs 0.52 billion
contributed in the previous year.
l Business Intelligence (BI)
Dashboards: To help management Contribution to the Government
make well informed decisions in a Exchequer: The Company The actual performance of the
complex business environment. contributed around 78 billion rupees Company and status of projects
to the Government exchequer in as explained in the section titled
l Process Automation: In order to the form of royalty, taxes, levies and “Analysis of the Company’s Current
improve Company’s operational duties. Performance vis-à-vis the Targets”
efficiency, implemented e-forms indicate that the Company’s
and process automation systems Analysis of Prior Period priorities were in line with the
at departmental level. Forward-Looking Disclosures forward looking statements and its
In the previous year, it was informed performance was on target in all
l Annual Procurement Plan: For that the going forward, the areas.
visibility of the Company’s future Company will continue aggressive
procurement requirements and exploratory efforts in existing Status of the projects in
their proper planning, the company blocks, maintain uninterrupted progress and were disclosed in
successfully implemented APP supply of hydrocarbons to its the forward-Looking Statement
(Annual Procurement Plan). downstream customers, while at in the previous year.
the same time explore farm-in The status of the projects has been
E. Stakeholders and selected farm-out options, disclosed in detail in the Managing
HSE: The Lost Time Injury Frequency acquisition of international blocks, Director’s outlook and Director’s
(LTIF) was 0.12 during FY 2021-22 and selected diversification projects. Report.
FORWARD-LOOKING
STATEMENT
The Company is steadily expanding potential to significantly Enhance the
its operations and building its human, Company’s reserves-base with expected
technical, financial and social capitals production commencement in 2024-
to fuel and sustain its future growth 25. Furthermore, MSU seismic data
trajectory. The company intends to acquisition capacity has been enhanced
enhance its production from the Mari with the addition of third seismic crew.
D&P lease and increase its existing MSD has enhanced its resource capacity
exploration acreage by acquiring both by adding two rigs (Rig 4 and Rig 5) each
local as well as international blocks having 2000 HP to its portfolio.
through participation in bidding as well
as M&A efforts. The Company is pursuing the signing
of PCAs/ELs over Dadhar, Mach,
Mari Field has been the mainstay of the Meeranpur, Sui North and Kalat West
Company’s production and revenues Blocks, which it won in the block bidding
since inception and is expected round held in 2022. The company is
to remain so in the coming years. also expediting its exploratory efforts in
Therefore, a significant portion of Sharan and Nareli Blocks that were won
the Company’s efforts and resources in the bidding round held in 2021.
including drilling of wells and measures
to achieve optimal production will be MPCL along with consortium of Pakistani
expanded in Mari Field. The Company companies, OGDCL, GHPL and PPL has
will carry out exploration activities been awarded Offshore Block 5 in Abu
in current and prospective blocks on Dhabi’s second competitive exploration
priority with an aim to discover more block bid round.
hydrocarbon resources, which can
be immediately brought on stream The consortium incorporated a Company
by utilizing existing infrastructure. named Pakistan International Oil Limited
Infrastructure-led investments in the (PIOL), in Abu Dhabi Global Market, in
exploration and development projects in which each consortium member has
Mari Field will hopefully add significant 25% shareholding.
value to the Company for passing-on to
its stakeholders. Offshore Block-5 is located 100
kilometers north east of Abu Dhabi
MPCL is also constantly looking for city. The award of offshore Block-5 in
potential means to mitigate the pricing Abu Dhabi will augment the Company’s
risks generally faced by the E&P sector reserve- led growth strategy and will
as a whole and realizes the importance also serve as stepping stone for the
of diversifying to manage potential Company’s internationalization efforts.
risks in the rapidly changing market
dynamics. MPCL has successfully The Company is continuously scanning
drilled its first exploratory well (BW-1) for opportunities in core and non-core
in Bannu West Block with significant sectors and a number of projects are
resource of hydrocarbon in the area. at different stages of evaluation. The
The Company is also vigorously Company is conducting due diligence
completing its pre-spud activities in and feasibility studies of various projects
Block-28 in Balochistan for start drilling and plans to invest in them, subject to
its first exploration well in February their economic feasibility and requisite
next year. These two blocks have the approvals.
Source of Information and There is no imminent competition drilling capabilities at par with
Assumptions used for from any of the other exploration international standards.
Projections/Forecasts in and production companies operating
Forward-Looking Statements in Pakistan especially when the 4. Ability and track record of
The information and assumptions gas utility companies are faced operating in security-sensitive
used for projections and forecasts with widening gas demand supply areas where other service
are sourced from PPIS reports, imbalance consequently resorting providers and E&P companies are
Economic Survey of Pakistan and to heavy reliance on import of RLNG, reluctant to venture.
several international oil & gas which is priced under a ring-fenced
industry-specific sources such as full cost recovery mechanism. 5. Ability to operate on thin margins
IEA publications and websites. Gas pricing for indigenous supply being low cost operations.
The data from external sources is for fertilizer sector is subsidized
combined with in-house exploration, which effectively eliminates any 6. Strong balance sheet and cash flow
production and financial data. competition with RLNG. generation ability.
After extensive examination and
deliberations by the area experts, The situation is unlikely to change in Business Model
the Company’s business plan is the foreseeable future as indigenous Business model is a system of
developed to set the objectives gas production is on the decline and transforming inputs, through its
and targets for the coming there is a widening gap between business activities, into outputs
year, providing a foundation for demand and supply. The remote and outcomes that aim to fulfil the
developing an effective strategy for possibility that could arise for the organization’s strategic purposes and
growth. Company could be its inability to sell create value over the short, medium
gas, if the Government pushes for and long term.
Competitive Landscape and preferential use of RLNG leading to
Market Positioning pipeline capacity issues. The Company provides raw material to
MPCL manages and operates the the fertilizer sector and plays significant
largest recoverable gas reservoir How the organization is currently role in ensuring food security of the
of the country at Mari Gas Field, equipped in responding to country. The Company also provides
Daharki in Sindh. MPCL is the second the critical challenges and gas to domestic and power generation
largest gas producer in the Country uncertainties that are likely to consumers.
with a market share of around arise
22% and cumulative hydrocarbons MPCL has the requisite expertise MPCL’s Business Model objectives are
production of over 100,000 BOE per and is well equipped to deal with the aligned with its operational priorities.
day. critical challenges and uncertainties Its gives in-depth strategic roadmap
that it is currently facing. At the same that will calculate internal and external
MPCL is uniquely positioned in time, the Company is enhancing market dynamics of MPCL and evaluate
the petroleum exploration and its human, technical, financial and strategic opportunities based on but
production business in Pakistan knowledge resources to deal with not limited to the below given main
having the largest dedicated uncertainties and risks of the future. areas;
customer base comprising mainly The expertise and strengths of MPCL
of fertilizer manufacturers where are enumerated below: l Strengthening the E&P core – Local
natural gas is primarily used as feed expansion of drilling blocks onshore
stock. The chemical composition of 1. A pool of highly qualified and
and offshore.
the gas produced from Mari Field experienced professionals
is ideal for urea manufacturing and who are strategically focused l Production enhancement from
does not require any processing and dedicated to achieving existing reservoirs.
for utilization in the fertilizer excellence in each sphere of the
Company's operations. l Explore adjacent industries – Setting
sector. More than 90% of the
up renewable projects.
urea production in the Country is
2. Operatorship of Mari Field which
based on natural gas supplied by Cost cutting and budgetary control
contains the Country’s largest l
MPCL. The composition of the gas measures especially in finding,
gas reservoir (in terms of current
produced by MPCL, and the cost at development and operating costs
reserves).
which it is produced, gives MPCL an
advantage over other gas producers/ 3. In-house seismic data l Optimize field productions especially
sources. acquisition, processing and from Mari D&PL area so as to generate
MPCL Business Model

Aggressive Exploration
(Local & Foreign)
Production Optimisation
Stakeholders • Existing Fields
• New Producing Assets
Diversification
Financial &
New
Discoveries
Operational Growth
More Funds
Early
Production
Early Revenues
Revenue Maximisation
additional revenues to fund wells, hydrocarbon reserves all sections of the Mari Services
exploration activities enhancement, production of Division.
hydrocarbons and acquisition
l International growth – Acquire of exploration acreages. 4. Internal Processes:
international drilling blocks Core business also includes This area mainly emphasize on
focusing on short cycle, low cost replacement of depleting re-structuring of internal business
assets. reserves by making new processes by adopting the latest
discoveries and Reserve technology and techniques. The
l Keep pursuing exploration-led Replacement Ratio growth. ultimate objective is to improve
growth strategy to achieve 100% Company’s operational efficiency.
reserves replacement ratio. 2. Diversification:
This area mainly covers the 5. Stakeholders:
To ensure a balanced growth of the diversification business of This area cover the expectations of
Company, the following strategic the Company as the oil & Company’s stakeholders e.g joint
areas shall be the focused while gas business dynamics are venture partners, shareholders,
developing the business model: constantly changing. The customers, employees and
Company is evaluating different specially the local communities in
a. Core Business/E&P
opportunities in entire energy different areas of the Company’s
b. Diversification value chain. operations.
c. Financials
d. Internal Processes 3. Financial: The business model is reviewed
e. Stakeholders The focus in this area include and monitored on quarterly basis
increasing return to the against targets vs achievements.
1. Core Business/E&P: shareholders, enhancing net The Company’s short, medium and
This area covers the Core profit by increasing sales, long term business strategy has
business of E&P e.g 2D/3D receivable recoveries, budgetary already been provided in Strategic
seismic data acquisition, control measures and achieving Business Plan and Resource
it’s processing, drilling of financial self-sufficiency for Allocation section.
The Effect of Technological Change, Societal

Issues and Resource Shortages, on the Company
Strategy and Resource Allocation
profitably” while making a positive
contribution to communities,
environment and creating value
for all stakeholders. MPCL has
longstanding pledge to achieve
well-being of all the stakeholders in
its value-chain through continuous
engagement with relevant
departments / stakeholders by
upholding best practices in social
responsibility as laid down in the
ISO 26000 guidelines. Our Core
Values revolve around inclusive
business, responsible investment,
triple bottom line and innovation for
Discussion on Technological Utilisation - Head Office, Islamabad sustainability.
MPCL spent around Rs 800 million

Effect of technological change driven tools in its operations. on different CSR (Corporate social
MPCL has an agile working Digitalization of the rig is another responsibility) Projects during the
environment which is powered by area which the company is studying FY 2021-22.
latest technological tools. COVID-19 closely for possible adoption
has forced MPCL to accelerate the Needless to say that the company Moreover, significant amounts of
adoption of technologies and the is both willing and ready to adopt Rs 2,601 and Rs 522 Million were
company is now a remote ready latest technological trends while deposited as Production Bonus and
organization which has allowed being cognizant of the cyber Social Welfare Obligations for Mari
operations of the company to security risks. Field Daharki.
continue without interruption. In
the core business area , Technology Societal issues (population and Environmental challenges, such
has the potential to enhance demographic changes, human as climate change, the loss
performance across the entire rights, health, poverty, collective of ecosystems, and resource
upstream oil and gas value chain values and educational systems) shortages:
by enabling optimization and The Company responds to societal Miyawaki Forestation in Daharki.
automation. MPCL is cognizant issues by carrying out high- Pakistan is extremely vulnerable to
and increasingly focused to be impact projects in the thematic climate change impacts because
at par with the leading upstream areas of education, health, water of its geographical location, high
companies of the world. MPCL supply schemes, infrastructure population and low technological
has kept itself abreast with development etc. for the uplift and resource base. In line with
implementation of cloud networks of the local communities in its Pakistan’s national goals for climate
and data automation. With the active areas of operations, which action, MPCL is aggressively
help of highly qualified in-house IT are mostly far-flung and generally engaged in tree plantation drives in
workforce and industry experts, devoid of even basic necessities. and around its areas of operations.
SCADA systems have also been Adopting the latest technique of
installed in Mari field with plans for Corporate Social Responsibility is afforestation, Miyawaki Forest
installation in other fields. a significant instrument to achieve has been established in Daharki
MPCL’s goal of sustainability and on an area of over 20 acres. Over
An increased effort has been put business continuity. Sustainability 45,000 trees, sub-trees and shrubs
in to enhance reservoir analysis. at MPCL means a commitment have been planted which will
Company also intends to adopt towards country “to develop and significantly contribute towards
latest machine learning and AI explore resources responsibly and carbon neutrality.
Training on Professional Etiquettes to Trainees - Head Office, Islamabad
Specific processes in making direction is provided by the management during strategy

Strategic decisions and Managing Director, the strategies sessions, which are convened to
monitoring the culture of and corporate objectives are evolved review and update short as well
organization at the departmental levels to ensure as long-term strategic outlook of
ownership and commitment of those the company. Finally, a strategic
Balance Scorecard: charged with implementing the plan. workshop, presided by the Managing
In order to evaluate the Director, is arranged to hold a joint
organizational performance, The overall planning approach session of HODs to collect their
management has introduced the employed is systematic and rational, feedback and finalize MPCL’s future
Balanced Scorecard approach. based on the guiding principle that strategy and the business plan is
Selected financial and non-financial “planning process is as important as essentially extracted from those
metrics have been monitored the plan itself and hence needs to be strategies.
for evaluating the corporate carefully chosen”. All possible efforts
performance. are made to keep the process Attitude towards risk and
open, iterative and flexible so that mechanisms employed by MPCL
Management believes that long- it remains substantially evolving to mitigate risks and address
term business success will not be over time while keeping all the issues of integrity and ethics.
achieved if the focus is only on stakeholders on-board. Individual’s attitude towards risk at
near-term financial gains. With the operational level or organization’s
balanced scorecard approach, an Each year before initiating work collective attitude at the macro-
array of performance measurements on setting corporate goals, level forms the overall risk culture of
indices both operational as well management feedback is gathered the organization. A progressive risk
as strategic have been developed. through a structured questionnaire culture is the product of individual
Each indicator is congruent with the highlighting the strategic outlook and group values, of attitudes and
overall objectives of the company. of the Company and seeking input patterns of behavior that lead to a
from management employees about commitment to an organization’s risk
Business Planning Process: their aspirations about company’s management policy. Organizations
The process adopted by the future, their perception of challenges with a positive risk culture are
management for developing company is facing and the potential characterized by communication
Company’s Business Plan is strengths and weaknesses etc. founded on mutual trust, by shared
participative, consultative and Subject feedback serves as basis perception of the importance of risk
result oriented. While the overall of discussion among the senior management and by compliance
of the devised processes and The issues of ethics and Anonymous complaints have been
reporting requirements. To this transparency are dealt with in line allowed and rewards have been
end, MPCL puts great stress with our Code of Conduct, which introduced for the whistleblowers.
on initiatives and measures all the employees have to commit
focusing on positive changes in to. An effective Whistleblowing The initiatives taken by the
the organizational behavior that Policy is also in place to provide a company in promoting and
contribute towards a progressive platform to all stakeholders of the enabling innovation.
risk culture. Company to voice their concerns
where they genuinely believe that MPCL introduced 1st ever
Dealing with the issues of ethics the Company’s business is not engineered Road Hazard
and integrity: We maintain the being carried out in an appropriate Management System (RHMS) with
highest ethical, moral and legal manner or any suspicious or the support of ADCR in the E&P
standards in all our dealings undesired event/activity is being sector of Pakistan.
without compromise. Integrity is carried out in violation of the
the foundation of who we are and applicable laws or Code of Conduct l MPCL developed fit-for-purpose
what we stand for. There is no gap of the Company or which may have Well Delivery Process & Well
between what we say and what an adverse impact on the business Engineering Management
we do and there is a conformity or goodwill of the Company or the System (WEMS) to Plan, Execute
between our thoughts and actions. society at large. and Evaluate well construction
business cycle aligned with
Similarly, ethics and transparency The Policy has recently been international standards.
guide our daily activities. We believe revised to introduce important
in doing what is right, whether changes to encourage l Several technologies were
or not that is required under the whistleblowing. Now the introduced in drilling operations
law. We maintain honest and open complaints and concerns are e.g. managed pressure drilling,
communication with our internal directly dealt with by the Chairman oil based mud, sidewall coring,
and external stakeholders about Audit Committee instead of through bit logging etc. to deliver
our actions and operations. any executive of the Company. the well objectives.
Celebration of World Environment Day - Islamabad

SWOT Analysis of the Company
Strengths:
l Large reserves base with strong financial
outlook
l Low operating cost among peer
companies
l Gas player operating Pakistan’s biggest
gas field
l Ability to operate in security sensitive
areas
l Reputed mgt. practices/goodwill among
local/international circles
l Efficient & highly resilient Services
Division
l Experienced & highly qualified work-force
with positive work attitude
l Strategic position as backbone of national
food security
l Diversified shareholding
Weaknesses:
l Over dependency on Mari field for
production and revenues
l Dependence on the local geology with
limited prospectivity for organic growth
l Fast depleting reserves
Opportunities:
l M & A opportunities in the oil and gas
value chain
l Investment opportunities in near core
and related business
l Opportunity to leverage position in the
associated gas value chain
l E&P growth potential available in existing
D&PL areas
l Substantial demand for oil and gas in the
country
Threats:
l Low oil and gas prices: Geopolitics and
other factors negatively impacting oil and
gas prices
l Foreign exchange restrictions on
investment in international projects.
l Economic slowdown.
Composition of local Supply Chain of MRP for automated replenishment

of inventory, SCM Dashboard for
versus imported Management improved visibility into spend areas,
materials and To keep up with the growth plans and several quick-win initiatives under
sensitivity analysis of MPCL and best practices globally, project “Fast Forward”.
the department has been renamed
due to foreign from Procurement to Supply Chain In addition, a performance
currency fluctuations Management. The SCM department management framework consisting
Substantial portion of our annual is now responsible to manage end of key performance indicators and a
procurement spend comprises to end process of requirements data-driven reporting mechanism for
of foreign materials and services, covering Procurement, Demand performance monitoring and visibility
while our major spend is in USD. Planning, Logistics, Warehousing, have been implemented, which will
Continuous deterioration of PKR Contracts and Quality. This change facilitate the strategic allocation
to USD parity has increased the will bring in well-coordinated of time and resources to the areas
economic volatility and uncertainty integrated services and will result where they are most needed, thereby
to unprecedented levels. Foreign in better planning and efficient enhancing the overall operational
currency fluctuation is one of services to the stakeholders. efficiency.
the major barriers faced by our
global sourcing initiatives aimed Supply Chain Department is SCM team is now fully equipped to
at acquiring quality materials undergoing transformation to maintain and further enhance service
and services, while achieving become a strategic business unit, levels and to establish a reputation
cost savings wherever possible, capable of providing maximum of a business partner and source
resultantly, our efforts may yield support to MPCL’s operations. of competitive advantage for the
zero or even negative results. A clear strategy and roadmap stakeholders.
Furthermore, exchange rate is defined to enhance capacity
fluctuation also adversely affect and capability. New systems and Business Rationale
procedures have been implemented
the local sourcing initiatives as our
and all functional units within the of Major Capital
key suppliers import a significant
portion of their raw materials supply chain have clearly defined Expenditures / Projects
from abroad. Consequently, the objectives and priorities. during the year and for
prices denominated in PKR are
In a short span of time, SCM has
those Planned for next
also impacted and increased risk
premium is built into the prices. been able to successfully complete year
several initiatives, including roll-out All major capital expenditure/projects
of SCM Manual, Implementation during the year were in line with the
Zarghun South Gas Field, Balochistan

Company’s strategic objective of required to ensure compliance encourage investment in the E&P
reserves replacement, production with applicable E&P, environmental, Sector. These changes will be
enhancement, expansion of corporate, commercial, and taxation implemented after approval by
exploration acreage and capacity laws as well as directions of various the relevant forums. Apart from
enhancement of MSU. To achieve regulatory bodies. In addition to the E&P Industry specific policies,
early monetization of HRL gas, federal laws, MPCL has to comply the imposition of super tax has
two compression batteries and with the applicable provincial laws, impacted the Company’s bottom-
dehydration unit were procured while its international operations in line, while lack of a clear and
and installed on fast-track basis the UAE are subject to the relevant effective strategy on part of the
at CMF-II and commissioned in corporate and other laws of the Government to deal with the rising
mid-June 2021 to inject up to 50 UAE. circular debt may impact the
MMSCFD gas into SNGPL system. Company’s liquidity and availability
An agreement was put in place to The legal and regulatory of funds for future exploration and
supply gas to SNGPL through PFL’s environment can have significant development projects.
pipeline under Third Party Access influence on MPCL business model
Arrangement. This arrangement and its operations. A change in
has offered a flexibility to ensure the applicable laws can create
continued gas production when uncertainty, change the basis of
any of MPCL’s existing customers investment decisions, and even
are unable to off take allocated gas invalidate what initially were very
volumes. sound business decisions.
Major capital expenditures

planned outside Mari Field include GoP Policies and
exploratory wells in Block-28, Impact on the
Sujawal, Sukkur, Bannu West and Company’s Business
Karak Blocks and completion of
current seismic data acquisition
Performance
campaign in Block-28, Ziarat, Wali During the year, there was
West and Taung. no significant change in the
government policies related to
The Legislative the E&P Sector. The Petroleum
Division is working on revising
and Regulatory the Petroleum Policy 2012
Environment to offer more incentives to
MPCL operates in a heavily foreign and local exploration
regulated environment and is and production companies to
s
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In
1. Health, Safety and Environment

2. Human Resource
3. Value Addition to Shareholders
4. Corporate Social Responsibility
Health, Safety &

Environment Policy
HEALTH
l Identify, evaluate and control l Arrange for medical services
operational health risks through necessary for the treatment of
safety reviews along with health employee occupational illness or
programs implementation; injuries & for handling of medical
l Communicate in a reasonable emergencies;
manner to potentially affected l Monitor health related
MPCL while conducting business & individuals or organizations about performance to ensure
operational activities is committed to health risks gained from our health compliance with this policy;
promote & pursue excellence in the programs;
l Implement Alcohol and Drug
Health & Safety of everyone impacted l Determine at the time of Abuse Policy among employees
by our activities. We will take all employment & thereafter the and contractors.
necessary measures to protect the medical fitness of employees to do
environment in our surrounding areas their work without undue risk to
with key focus on the development themselves or others;
& welfare of communities in
our operational areas. Establish
accountability & responsibility for HSE
within line management for equal SAFETY
importance as all other business
l Design & maintain facilities, performance on the job and
processes.
establish management systems, encourage safe behavior off the job;
We will ensure continuous provide trainings & conduct
l Ensure operational integrity
improvement by measuring & operations to safeguard people.
throughout each business activity’s
analyzing our HSE performance during l Respond swiftly & effectively life cycle by carrying safety reviews
the implementation of Integrated to crisis & emergencies or & evaluations, operation’s reliability
Management Systems in all our operational incidents; & availability coupled with high
activities. Everyone who works for l Conduct & support safety analysis quality assurance at all times;
MPCL should go home in good to extend operational safety l Ensure that HSE takes priority
physical & mental health, which effects’ knowledge, applying over production, cost & schedule.
will be achieved by identifying and findings and sharing; We will ensure stop work policy’s
eliminating risks related to Health, implementation when unsafe act /
l Keep informed all concerned
Safety, Environment and Quality for condition occurs.
about their responsibility
our people, assets, environment and and accountability for safe
company reputation.
We believe that all incidents are

preventable and relentless efforts ENVIRONMENT
by all responsible employees and
l Encourage concern and respect incidents, controlling emissions &
contractors are required to collaborate
for the environment, emphasize wastes to below harmful levels;
in achieving this ambition. Everyone
every employee’s responsibility in design, operate and maintain
working on behalf of MPCL shall
environmental performance and facilities to this end;
comply to this policy and proactively
ensure appropriate safe operating
contribute to achieve zero incident l Respond quickly & effectively to
practices & trainings;
goal. We will comply with all applicable environment related operational
laws, regulations and standards while l Work with government & industry upset incidents, cooperating with
conducting our business. groups to foster development relevant government agencies &
of effective environmental laws others;
& regulations based on sound
l Communicate with the public on
science & considering risks, costs
environmental matters & share its
& benefits & effects on energy &
experience with others to facilitate
product supply;
improvement in environmental
Mr. Faheem Haider
Managing Director/CEO l Manage its business with the performance.
Mari Petroleum Company Limited goal of preventing environmental
Health, Safety and Environment
MPCL HSE PERFORMANCE
HSE KPI Five Year Total Recordable
In every Oil and Gas Company FY 2021-22 Incident / Case Frequency
devoted and committed leadership,
l Achieved l Worldwide
management commitment & l Target l MPCL Target
participation at every individual l Worldwide (2021) l MPCL Achieved
0.99
level to ensure true implementation
0.77
0.96
0.8 1.0
0.92
of HSE systems all across the
organization must have high visibility; 0.7
0.77
which was witnessed during the FY 0.8
0.70
0.6
2021-22. MPCL’s HSE objective of
0.48
“no harm to people, environment,
0.43
0.5
0.6
asset and reputation” was achieved
0.49
0.45
0.35
0.4
0.43
through Implementation of robust
0.40
0.32
HSE Management system; which is a 0.4
0.3
0.30
0.24
0.29
0.22
vital and one of MPCL’s core values
0.2
0.18
towards continuous improvement
0.12
0.12
0.12
0.2
0.12
0.09
0.11
of our HSE goals, objectives and
0.09
0.1
performance.
0.00
0.0 0.0
TRCF
LTIF
PSER TIER 1
PSER TIER 2
2017-18
2018-19
2019-20
2020-21
2021-22
This is a remarkable achievement by
MPCL’s permanent and contractual
staff at all locations while working
in extreme working conditions,
especially the Projects, Seismic & on Management of Change (MOC) that includes 10 basic process
Drilling crew who are experiencing process, Pre-Startup Safety Reviews safety management guides that
and managing severely harsh terrain (PSSR), Hazard Operability (HAZOP) must be followed by all concerned
coupled with continuous extreme and other process safety related operations, projects and drilling
environmental conditions. studies at appropriate phases of the teams.
projects and operations.
In FY 2021-22; MPCL recorded CONTRACTOR HSE MANAGEMENT
combined (employees and The reporting culture of Process MPCL believes in keeping
contractual workforce) 0.12 Total Safety Incidents also improved, Contractors and MPCL Safe-
Recordable Case Frequency (TRCF) with special focus on leading Partnering for Win-Win.
against set target 0.43, 0.12 Lost indicators. The Incident Investigation
Time Injury Frequency (LTIF) against approach is further enhanced Being a responsible E&P business
set target 0.32, 0.00 Process Safety by employing the Tripod Beta organization, MPCL is committed
Event Rate (Tier I) against set target methodology, ensuring that to creating a strategic contractor
0.24 & 0.09 Process Safety Event latent failures are identified and safety management program for
Rate (Tier II) against set target 0.48. processes are improved as part of all contractors and subcontractors
the management system. Process working for MPCL. Contractor
MPCL’s last five year performance Safety Event Rates were calculated engagement and management
of Total recordable Incident / Case and accordingly risk mitigation are critical to achieving high
frequency is elaborated in the graph measures were taken with high technical, commercial, and safety
below: focus on system development for performance. At MPCL, contractors
assuring asset integrity. In addition, make up to 75 to 80% of the
PROCESS SAFETY MANAGEMENT high potential process events workforce; some contractors are
In the Fiscal Year 2021–22, enhanced were kept under high focus and long-term, working alongside
focus was given to process safety accordingly lesson learnt were permanent staff, while others are
management for strengthening Safe shared to avoid repeatability of the short-term, brought in for a specific
Operations strategy. This includes undesired events. project for a few weeks or months.
developing hazard mitigation plans
to bring risk to ALARP levels. Other Further, Process Safety To overcome the integration
key activities include increased focus Fundamentals were launched challenges of two organizations
Health Safety and Environment
Ten Process
Safety Fundamentals
Ensure Proper EQUIPMENT ISOLATION for
normal operations and maintenance works
Manage OVERRIDERS of safety critical systems
Establish SAFE OPERATING LIMITS for key

process variables and for all operating phases.
Identify SAFETY CRITICAL EQUIPMENT and

report on their deficiencies
Empty and De-Energize before FIRST LINE BREAK
Verify LEAK TIGHTNESS after maintenance

work or modification
Identify, eliminate or control the full range of potential

IGNITION SOURCES during task risk assessments and execution
WALK THE LINE (to ensure operational

readiness via pipeline and valve line-ups)
Monitor OPEN DRAIN
Ensure a health Culture of

PROCESS SAFETY EVENTS REPORTING
Fire Fighting Drill

HSE Activities focusing emergency preparedness, care for people and environmental protection
with different workplace for the contractors and MPCL. unrest etc., at all MPCL locations for
cultures, mindset, work planning This will ultimately benefit the HSE ensuring the preparedness level of
and methodology, differences management at National level. our teams.
in language, and managing
competency, a comprehensive CRISIS & EMERGENCY ENVIRONMENTAL MANAGEMENT &
Contractor HSE Management MANAGEMENT COMPLIANCE
Framework has been developed. Our structured crisis and emergency MPCL is ISO 14001:2015
HSE contractor management management plan, that includes (Environmental Management System)
is mastered through various a detailed and structured way certified and is an environment-
dedicated and strategic programs. to tackle unplanned events, is friendly Oil & Gas Company in
MPCL organized and conducted revamped in the FY 2021-22. The Pakistan that complies with maximum
multiple HSE workshops, seminars, plan covers a detailed role based environmental standards. Our IMS
Lifesaving rules campaigns, kick- plan for rapid response teams, Audit against the EMS Standard
off meetings, pre-mobilization Emergency Response Teams, Incident resulted in zero non-compliance
workshops, hazard-hunting surveys, Management Teams, Emergency & observations. Emission control
Control of Work (COW) workshops, Management Teams and Crisis measures, preferably using
Simultaneous Operations (SIMOPs) Management Team. The plan enables environment-friendly equipment and
Workshops, road safety workshops, us to deploy a quick and effective solar powered systems, are the basic
Walk around audits, hazard hunting response, preventing a crisis that and important measures that have
surveys, reward and recognition could adversely affect the image and been practiced since long.
programs, and service quality reputation of the Company. This plan
meetings. caters to activities including Offices, On the environmental front for
field operations, drilling, seismic calculation of Green House Gases
On HSE front, capacity building activities and all projects. Number of (GHG) emissions, MPCL continued the
of local contractors and sub- Management drills were conducted emissions monitoring project, which
contractors, while enhancing their for multiple scenarios that mainly is the baseline for gauging margins of
working standards to international covered fire, oil spill, gas release, improvement for Carbon footprints
level, to achieve a mutual benefit natural disasters, earthquakes, civil reduction.
At present MPCL network Further, external bodies reviewed We achieved the following
comprises many sites, including HSEQ procedures to ensure World’s objectives through trainings:
settled, unsettled, rigs, and seismic best safety practices and accurate l Understanding HSE requirements
operations, which are operating implementation at all MPCL sites. for the E&P life cycle.
in all provinces of Pakistan, which
are mostly in remote areas with OCCUPATIONAL HEALTH l Understanding HSE roles &
barren lands. Management of all MANAGEMENT responsibilities.
the locations has put a lot of effort For organizations that are serious l Enhanced performance for high
into improving environmental about improving employee health level of performance.
sustainability and contributing to and safety, reducing workplace
l Continuous improvement of
climate change through plantation, occupational health hazards/
our system with value added
and avoiding loss of vegetation risks, and creating better, healthier
comments.
during operational activities at its and safer working conditions;
best. Currently, despite the huge complying with safety standards l Clarity on Incident Reporting
pressure on land resources, large is the only way forward. During requirements.
areas of land are in a degraded COVID-19 situation when various
state, where plantation can be an activities were jeopardized due to Further, 42,780 Training man-hours
effective way to bring degraded land constraints in mobility, lock down were recorded for 1,960 HSEQ
back into productive use. etc. MPCL employees showed trainings, and 578 HSEQ Crisis &
true reflection of dedication and Emergency Drills were organized
Surveillance audits by Governmental commitment to the required for employees at all locations in FY
bodies; that includes, CIM, protocols and came out of the 2021-22.
provincial EPA’s, Wild Life etc. on situation at our locations. Safe
environmental front have shown distancing, mask compliance, HSEQ trainings mainly covered
good results with no major area of medical screenings, vaccination Life-Saving Rules, Permit to work
improvement in this regard. campaigns were one of the key system, Fire Fighting, HSE Risk
initiatives that were taken to Identification, Assessment &
MANAGEMENT SYSTEM ensure health of our employees. Control, Incident Investigation
(INTERNATIONAL STANDARDS) & Reporting, Behavior-Based
To achieve excellence in MPCL developed a special Safety, Safe food handling,
HSEQ performance, in 2007, procedure for business continuity General HSE awareness, HSE
ISO certification of the HSEQ during the pandemic disease. Laws & Regulations, IEE / EIA
Management System was MPCL ensured that all employees awareness, Defensive driving,
introduced as one of the core are vaccinated and awareness Stress Management, Chemical
management systems of MPCL. were given time and again with handling, Job Safety Analysis,
Since then, MPCL has maintained its proper isolation rooms well Waste Management, Crisis &
ISO standards implementation with designed and maintained for Emergency Management, Pre-
ZERO significant Non-Compliance abatement of COVID spread. Startup Safety Reviews & Process
during the surveillance audits by the Ultimately MPCL ensured zero Safety Management.
external body. downtime due to COVID.
HSE IMPROVEMENT ORIENTED
MPCL is maintaining the following HSE WORKSHOPS AND PROGRAMS & INITIATIVES:
ISO Standards after IMS certification: TRAININGS Our Safety Performance with a
l ISO 9001: 2015 We believe that through effective TRCF of 0.12 is reflective of the
(Quality Management System) teamwork, HSE requirements following initiatives that were
can be easily implemented, taken during our operational
l ISO 14001: 2015 (Environmental
through which we can reduce HSE activities:
Management System)
incidents and bring Risks to ALARP l HSE climate survey
l ISO 45001: 2018 (Occupational (as low as reasonably practicable).
Health & Safety Management l Behavior based safety leadership
HSE trainings imparted by the HSE
System) programs
department enabled employees at
l ISO 27001: 2013 (Information all locations to work safely without l Treatment of oil based mud
Security Management System) any major incident. (OBM) though bio-remediation
l Implementation of Life Saving l Carrying out Pandemic COVID-19, happen. More generally speaking,
Rules Malaria & dengue prevention the majority (67%) of survey
campaign at all locations respondents said safety culture
l Implementation of New HSE policy
l Performing Project & Task Risk is equally important to business
l Implementation of Operational strategy or operations. They also
Assessments at desired phases
Integrity Management Standards agreed that top cultural priorities
l Road Safety Management
l Monitoring and controlling Air should include health, safety
emissions & other Environmental l Development of Pre-startup Safety & environment as integrated
regulations Review Program business part.
l Annual Medical Check-ups of all
INSTILLING HSE CULTURE: Healthy participation from
Employees
Leaders see organizational culture MPCL employees and their
l Adopting a Risk-based approach as a powerful ally for sustainable constructive feedback, with high
l Fire & gas Management at all Sites business growth, according to value adding comments towards
recent global surveys of more than healthy cultural establishment
l Conducting HAZOP at Operational
40 countries, strong cultures drive / improvement was observed.
Studies
better business outcomes. In fact, The result clearly established
l Carrying out Health Risk the majority (69%) of senior leaders that MPCL is at in the phase of
Assessments credit much of their success to transformation from Calculative to
l Performing HSEQ Audits & a healthy culture. During recent PROACTIVE, which indicates that
Inspections years that necessitated major “Safety leadership and values are
changes for companies around driving continual improvement.
l Ensuring Incident Investigation & the world, more than two-thirds
Reporting of respondents believe that their To summarize following are the
l Carrying out Noise & Ambient Air culture helps change initiatives major areas of strengths and
Monitoring accordingly improvement areas
were also highlighted to the
management, out of 12 areas
which were analyzed, by majority
of MPCL people:
LIFE SAVING RULES l Management Commitment
S . A . F. E . R M . P. C . L l High standards of performance

l Training & development
Going forward, as MPCL take on a

long list of business imperatives,
organizational culture can provide
Safe Mechanical Authorization for Fall
the difference between thriving
Lifting Bypassing Safety Devices protection
and surviving. Further, our
ultimate aim is to transform from
the PROACTIVE to GENERATIVE
Culture and that will be the time
when we all can proudly say that
Energy Road Management “HSE is how we do our business
Isolation Safety of Change activities here”.
Utilizing hearts and mind tools

management training program
was developed and trainings/
workshops were conducted to
Permit Confined Line of
to Work Space Safety Fire Safety
enhance the HSE Culture.
Increasing Generative
"HSE" is how we do
Trust & business here
Accountability Proactive
Safety leadership and
values drive continual
improvement
Calculative
We have systems in
place to manage all
hazards
Reactive
Safety is important,
but we activate only
after incidents
Pathological
Who cares as long
as we are not
caught
HSE Drill - Managing an Oil Spill

Human Resource
Management & Development
OUR PEOPLE it business driven, employee- find that what they need from
We put people first and strive centric and making HR function their leaders is changing. The
to provide them a safe work agile. Human Resource Business leadership team must be able to
environment that is enabling & Partnering model was introduced reimagine the company’s place in
inclusive on one hand and rich to have strategic and operational the world and transform it to live
with development opportunities interaction with business and up to a more ambitious purpose by
on the other. At MPCL, we employ to ensure that HR speaks same collectively managing and leading.
innovation and excellence to language. HR Business Partners are To enable such transformation a
enhance growth and realize enabled to fully focus on their core 2-day leadership offsite themed as
human potential. We nurture business, supporting managers “the power of winning together”
our employees' inclusivity, and employees on various topics. was arranged to reflect on how the
performance, and development HR policies and processes were skills that leaders need for success
with well-thought processes revised with the aim to have have evolved. The leadership team
and policies focusing on digital better employee experience ensured that these learning are
transformation and employee through efficient and robust cascaded to their teams to ensure
experience. Our structured support mechanism. Performance that same message of winning
framework and processes are management mechanism was together by embracing greater
benchmarked with the best revised to inculcate performance responsibilities with commitment,
industrial practices while keeping driven culture. Business driven enhanced ownership and
employee wellbeing at the core of goal setting, regular development engagement is being carried out all
our philosophy. feedback & coaching and objective across the organization.
review of performance were made
RE-THINKING HR key pillars of this system. TALENT ATTRACTION AND
We believe that work dynamics RETENTION
are changing rapidly after LEADERSHIP OFF-SITE Our talent attraction strategies
entering of Generation Z into We believe that when companies with the aim to be the employer of
workplace. We reviewed our HR strive to build competitive choice, help us to attract, engage
Strategy with the focus of making advantage in today’s world, they and retain industry leading talent
Women's Day Session - Head Office, Islamabad

Human Resource - Management & Development
Leadership Off-Site
to contribute in company’s growth.

We were successful in on-boarding
right candidates and providing
them with the opportunities to
perform at their maximum which
yielded significant business result in
form of commissioning of our new
Gas Processing Plant.
MANPOWER
as on June 30, 2022
Training on Fundamentals of Reservoir Engineering, Islamabad
Management 691
Non-Management 772
with the best industry practices Trainee Program. We have wide
Trainees 96
and implemented a holistic and variety of on the job learning and
Total 1,559 standardized total reward strategy mentoring opportunities available
Average No. of Employees 1,414 successfully. This total reward for management trainees to build
Male Employees 1,485 framework includes market driven on their strength and improve their
Female Employees 74 remuneration benefits along with professional skills.
comprehensive health and terminal
Our Talent Acquisition team benefits. Employees grading TALENT IDENTIFICATION
engaged candidates in a variety structure has been restructured and AND SUCCESSION
of ways that included strong transformed. This transformation Over the years, MPCL has created
foot prints in social media helped us to inculcate a performance a dynamic environment and
particularly on LinkedIn, strong driven culture, keeping pay for organizational climate that enables
industry – academia linkages, performance as one of the core its people to apply their knowledge,
active participation in career fairs, deliverables. skills and creative energies to support
apprenticeship programs and its vision. MPCL always focuses
employee referrals. INVESTING IN FUTURE TALENT on developing its key talent with
MPCL offered program at entry leadership skills which help them
TOTAL REWARDS level with the aim to ensure future to focus on their roles as managers
TRANSFORMATION employees can have the start of and leaders and the transition from
To retain our workforce, we career which they envisioned. Our self-management to management of
provide our employees with Management Trainee Program individuals and managers.
competitive total reward structure SEED (Skills Enhancement &
benchmarked internationally and Employee Development) attracted We introduced specifically designed
tailored to address the needs a number of young graduates this talent management tools to identify
of our diverse workforce and year and after rigorous and holistic talent at all levels of our company
their families. We reviewed our assessments, successful graduates who have the potential to become
total reward framework in line made into the two year Management future leaders or key players within
Best Departmental Performers with the Managing Director
the organization. We ensure that we have bespoke development programs in WORKPLACE INCLUSIVENESS:
place to prepare these hi-potential individuals for more complex future roles. We are strong advocate and
practitioner of workplace
Our talent identification and development approach aims to ensure inclusiveness. We realize that diverse
sustainable business operations through the development of strong internal workforce with different ideas,
talent pipelines for our critical leadership positions. interests, background and experiences
will benefit us in achieving our short
CAPABILITY DEVELOPMENT and long term goals. We strive to
Our skilled and developed workforce is a key to our growth and success. provide a working environment where
We are committed to provide our employees with continual learning and all our employees’ contribution are
development opportunities encompasses technical, professional and heard and appreciated – regardless of
leadership trainings. We ensure that we provide employees with trainings to age, gender, ethnic origin, religion and
master their current jobs, broaden their skills, and advance in their career. different abilities.
We encourage our employees to contribute their best and to avail the
opportunities for development and growth. We continued to explore and As part of our inclusive program we
offer different training delivery methods for maximum flexibility, including revised leave policy with extension in
virtual, self-paced, and hybrid formats. existing maternity and paternity leave
days. We at MPCL understand that
Summary of number of employees who participated in learning &
increasing women participation is a
development in 2021-22 is shown below.
key to enhance inclusivity and we take
Training Status 2021-22 (Technical & Non-Technical) pride in inducting female engineers in
S.No. Training Sessions Participants our Management Trainee Program. Our
1 Technical 39 317 female engineers constitute 25% of
total MTOs inducted.
2 Non-Technical 30 420
3 HSE 44 1,171 Another step towards addressing the
Total 113 1,908 minimal representation of women in
the Oil & Gas industry and to mark the
EMPLOYEE ENGAGEMENT constructively deal with physical International Women’s Day students
AND WELLBEING: well-being issues that may arise. from leading schools and daughters
We strive to inculcate a culture of our employees had a session with
of collaboration, trust, creativity We continued to have employee our Managing Director, top executives
and high performance. Our culture engagement workshops where we and MPCL’s extraordinary women. The
and people are our key enablers seek feedback from employees. session which centered on enhancing
in envisioning our future. We are We are aware that employee awareness about STEM careers
mindful of employee physical, feedback will play a critical role in (Science, Technology, Engineering and
social, emotional and psychological our quest of creating an excellent Mathematics), their importance in
wellbeing and conducted various employee experience and promoting innovation in the world and
sessions on these topics. We have continuing to attract and retain to learn more about the oil and gas
platforms which help employees talent. industry.
Value Added to the

,
Shareholders Net Worth
One of the Company’s greatest achievement over the years has been to
maintain a balance among the varying and often competing expectations
of its different stakeholders. The Company has consistently delivered long
term value to its shareholders without compromising on sustainability
practices.
Sponsor General
Shareholders Public
Total Holding (Shares) 104.5 million 28.9 million

Current Worth of Holding (Rs)* 181.8 billion 50.3 billion
Total Value Addition

Actual Investment 367.5 million
Current Worth 232.1 billion
Total dividend approved / recommended by the Board for the FY 2022 is Rs. 16.5 billion.
*Based on closing share price of Rs. 1739.74 on June 30, 2022.
MD MPCL with Shareholders - Head Office, Islamabad
Contribution to the Foreign Exchange Saving
National Economy
(Rupees in billion)
600
530
l Ensuring Country’s food security: More than 90% urea production based
on MPCL supplied gas. 500
l Providing gas to WAPDA for power generation.

400
329
l Providing gas to distribution companies for domestic/ commercial

288
consumers.
300
237
311
l One of the highest contributors to Government exchequer on account

of various taxes and levies.
200
2018
2019
2020
2021
2022
l MPCL produced hydrocarbons helped save foreign exchange equivalent

to Rs. 1.7 trillion during the last five years.
Corporate
Social Responsibility
Sustainability at MPCL means a commitment towards country,
“to develop and explore resources responsibly and profitably,”
while making a positive contribution to communities, environment
and creating value for all stakeholders. Our Social Policy and CSR
Programs are designed for well-being of our communities, who are
the fundamental stakeholders.
CSR Vision
Enabling people by CSR is a continuing commitment to improve the quality of life
improving their socio- of MPCL’s workforce, local community and the society at large.
economic status The company aims to produce sustainable impact by not just
to ensure inclusive mitigating negative impacts of its operations on environment
and sustainable but also by adhering to the highest standards of health & safety
development while
and contributing towards betterment of communities through
building community
sustainable social investment programs .
trust, mitigating
business risks and
assuring sustainable MPCL has longstanding pledge to achieve well-being of all the
continuity of the stakeholders in its value-chain through continuous engagement with
operations benefitting relevant departments/stakeholders by upholding the best practices
all stakeholders. in social responsibility as laid down in the ISO 26000 guidelines.
Policy on Social Responsibility b) Responsible Investment MPCL Aims

To ensure sustainability, we MPCL holds itself responsible We aim to create and maintain the
continually take steps for local for its environmental and social conditions under which humans and
communities through quality footprint, therefore ensures nature can co-exist in productive
products and services, creation that it not just mitigates the harmony to support present and
of employment opportunities, negative impacts but also future generations.
contribution to provincial positively contribute towards
and national exchequers and all stakeholders in the business a) Impacting Positively
meaningful CSR interventions in value chain. Benefiting communities through
priority thematic areas of health, Corporate Social Responsibility
education, water supply and c) Triple Bottom Line (CSR) Programs to improve
communication infrastructure. Right from the planning phase their socio economic conditions
to hardcore operations, MPCL by ensuring sustainable
Core CSR Values strategize every matter with the development.
a) Inclusive Business triple bottom line concept where
Being an inclusive business it secures substantial profit, b) Creating Shared Value
entity, MPCL duly involves develop people and strives to Sustainably delivering on
local deserving deprived save planet. shareholders’ expectations while
communities into its value addressing most pressing social,
chain to create shared d) Innovation for Sustainability economic and environmental
value by providing income Sustainability is achieved by issues with an inclusive approach.
generating opportunities and doing good business and to do
adopting nondiscriminatory good business MPCL keeps its c) Saving Nature
policies towards such local policies open for innovation and Saving the plant by investing in
populations. improvement. renewable energy and green
Corporate Social Responsibility
projects while accelerating the positive impact, MPCL focuses of the society in every possible way,
energy transition to achieve on collaborating with Federal, thus projecting the benevolence and
Net Zero. Provincial, District and Local philanthropy MPCL extends to the
Government thus supporting the society it serves, whether it is its
Approach most deserving communities obligation or not.
MPCL’s Sustainability & create across Pakistan.
an enabling environment for our a) Advanced Level in ISO
business to sustain and develop. c) Private Sector 26000 (Social Responsibility
To achieve the scale and sustained To ensure quality and Guidelines)
impact, cross sector partnerships sustainability of our social MPCL was placed at “Advanced”
& building collaborations is our investment programs, MPCL Level of performance against
strategy and thus the partners is partner with multiple local, global guidelines of ISO
are among the most valued regional and global organizations, 26000:2010 (Social Responsibility
stakeholders in the value chain such partnerships create positive Guidelines), in 2017. MPCL is
to achieve sustainability through impact for all the stakeholders in the only Oil & Gas Company in
strategic CSR initiatives. our value chain. Pakistan to be formally assessed
for ISO 26000, and the only
a) NGOs/INGOs Engagement with Local Company to have achieved
MPCL's partnerships with Non- Communities the Advanced Level rating.
Governmental Organizations Following DGPC Guidelines on The Company achieved the
go beyond philanthropy while Utilization of Social Welfare highest rating of “Role Model” in
generating shared value. Such Obligations, MPCL engages with Accountability, Ethical Behavior,
partnerships also stimulate local communities and relevant Respect for Stakeholders Interests,
innovative ways of working stakeholders on regular basis Respect for the Rule of Law,
and mobilize expertise and through public hearings, consultation Respect for International Norms of
resources to create shared session and outreach programs. Behavior and Respect for Human
accountability. Rights.
Adoption & Compliance
b) Government to Social Guidelines b) Aligned with UN Sustainable
To achieve the goal of inclusive MPCL’s CSR functions as per the Development Goals (SDGs)
development and to create existing guidelines issued by United Nations 17 SDG’s set the
regulatory authority of Ministry of holistic approach to address
Petroleum. However, CSR initiatives world’s most pressing social,
go far beyond the obligations as economic and environmental
these programs serve all segments challenges. At MPCL, all our
activities, businesses and social
investments are aligned with
the global compact principals,
ISO 26000 and thus with the UN
SDGs 2030. Through our wide
ranging social investment and CSR
programs, we are committed to
contribute directly towards 7 SDGs
while 6 SDGs are overreaching.
Sustainable Development Goals

with Direct Contributions
Following are the few UN SDGs 2030
Free Eye Treatment Camp - Daharki, Sindh in which we contribute directly by the
virtue of MPCL’s business, multiple Empowerment Initiative in l Water Supply Scheme Sabir Jan
social investment & CSR programs; Collaboration with AKHUWAT Kot, North Waziristan District
l Employment opportunities for l Water Supply Scheme Almara,

1. No Hunger: Goal No 02 calls locals at all MPCL’s operational North Waziristan District
to end hunger, achieve food sites. 6. Affordable & Clean Energy:
security, improve nutrition and
Goal No 7 ensures access to
promote sustainable agriculture. 5. Clean Water & Sanitation: affordable, reliable, sustainable
MPCL plays a pivotal role in Goal 6 ensures access to water and modern energy resources.
ensuring the food security of and sanitation for all to enhance
Pakistan as more than 90% quality of life by preventing Projects;
of the urea production in the diseases. l The Company launched GHG
country is based on MPCL emissions monitoring for
supplied gas.. Projects; calculation of environmental
l Installation of RO/Filtration Plants
2. Climate Action: Goal No 13 impact of its operations. The
and Hand pumps at Daharki
calls for urgent action to combat Company aims to minimize its
climate change and its impacts. l Installation of RO Plant at Turbat carbon footprints by investing in
It is intrinsically linked to all renewables. The Company’s aim
l Water Supply Scheme at Village
16 of the other goals of the is to become one of the largest
Karrera, Tehsil Shewa, North
2030 agenda of sustainable sustainable energy producers of
Waziristan
development. the Country by 2030.
l Water Supply Scheme Awal Jan
Projects; l Under MPCL's recent
Kalley, North Waziristan District
l Miyawaki Forestation at Mari investment in clean energy
l Water Supply Scheme Shewa,
Field Daharki projects through its Solarization
North Waziristan District Program "Roshan Ehd",
l Tree Plantation at Surghar
l Water Supply Scheme Khargai company has initiated 101
Shaheed, North Waziristan projects in its operational areas.
3. Quality Education: Goal No 4
District
calls for upward socio economic
mobility and is a key to escaping
poverty.
Projects;
l Noor-e-Sehar Special Education
School
l Mari Education Complex
l Mari Model High School
l Multiple Scholarship Program

& Donations for deserving
students
4. Decent Work & Economic

Growth: Goal No 8 calls
for sustained and inclusive
economic growth which can
drive progress, create jobs for all
and improve living standards.
Projects;
l SARBULAND – An Economic Noor-e-Sehar Special Education School, Daharki, Sindh
Roshan Ehd is a landmark l Dispensary at Well#8, Mari Field Implementing Partners;

step towards climate change Daharki l STEP, TCF, CDRS, LUMS, NUST, IBA
supporting community uplift l Mobile Dispensaries, Mari Field Sukkur, Akhuwat
by providing them affordable, Daharki
reliable and sustainable energy 3. Zero Hunger: Goal No 2 calls
l Financial assistance for
resources; for swift action which provides
treatment of underserved local
food and humanitarian relief
l 76 RO/Filtration Plants community
to the most at- risk regions by
l 9 Educational Institutes
8. Reduced Inequalities: Goal nourishing millions of people to
l 8 Dispensaries No 10 reduces inequalities help alleviate the perils of hunger.
l Gurdawara Baba Nanak and ensures that no one is left
Projects;
Shah, Daharki behind. This goal is integral to
l Mari Mobile Dastarkhawan
l Solar Street Lights at achieve all other sustainable
multiple locations development goals by l Ramadan Ration Distribution
preventing humanitarian crisis. Drive
l Public Park, Daharki
l Public Park, Mirpur Mathelo Projects; l Regular Ration Distribution at
l Noor-e-Sehar Special Education multiple locations
l District Jail, Ghotki
School 4. Gender Equality: Goal No 5 calls
l District Administration
Offices, Ghotki l Scholarships & Donation for to achieve gender equality and
Education purposes empower the women and girls to
l Institute of Religious
attain peaceful, prosperous and
Education, Mirpur Mathelo l MPCL Ambassador for Inclusive
sustainable world for all.
l Public Library, Ghotki Education
Projects;
Note: l 25% female representation
Overarching Sustainable
MPCL has planned to enhance is marked for MPCL SEED
Development Goals with Indirect
its Roshan Ehad program’s (Skill Enhancement Employee
Contributions
footprint for the areas of Development) program for year
Following are the few UN SDGs 2030
North Waziristan where 2022-23.
in which social investment & CSR
recently company successfully programs are contributing indirectly l Gender inclusive job
discovered new gas reservoirs through the impact Company advertisements are created to
creates; encourage women to apply.
7. Good Health and Well Being: Selection, however is based
Goal No 3 ensures healthy lives 1. No Poverty: Goal No 1 calls purely on merit.
and promote wellbeing at all to end poverty in all its form l An Anti-Harassment policy is
ages essential for sustainable everywhere ensuring social in place, demonstrating zero
development by helping lives of protection to all vulnerable tolerance for sexual or gender
millions groups of society. based harassment.
Projects;
Projects; l Fully equipped day care center
l Contribution for treatment of
l SARBULAND – Economic with trained staff is available for
deserving patients at AFIC,
Empowerment Initiative MPCL’s working mothers.
Rawalpindi
l Employment Opportunities
l Mari Medical Complex, Mari
CSR Commitments
Field Daharki
2. Partnerships for the Goals: Production Bonus and Social Welfare
l TB/Asthma Clinic, Mari Field Goal No 17 aims for stimulating Obligations for Mari Field Daharki
Daharki the global partnerships and were deposited amounting to
l Mother & Child Healthcare cooperation to achieve all other Rs. 2,601 million and Rs. 522 million
Centre, Dad Laghari (Mari Field) Sustainable development goals. respectively in the Joint Account with
Deputy Commissioner Ghotki. This 220,000 meals in Islamabad. to the children of underprivileged
amount is being utilized to carry out MMD was also mobilized to neighboring communities. SOS
projects for community welfare, as provide meals and humanitarian Village, House of Blessings, Noreen
approved by the respective Social relief to the people affected by Zindagi Trust, Pehli Kiran School
Welfare Committees, headed by a natural disasters like flooding #3 and several other orphanages
nominated political representative. in Sector E-11 Islamabad on 28 have been visited for distribution
July 2021 and more recently on purpose. MPCL shared Eid with
Moreover, around Rs 800 million has 8 January 2022 to the tourists orphan children as under:-
been spent on various voluntary CSR stranded in Murree due to
initiatives during the year. unanticipated heavy snowfall. l Shoes distribution at Pehli
In collaboration with CDRS and Kiran School, Islamabad.
Significant CSR Projects Raza Welfare Foundation, MPCL l Iftar Party and gift hamper
distributed 1800 dry ration bags distribution at Dur-e-Yateem
1. Mari Mobile to the deserving community Welfare Trust, Bacho ka Ghar
Dastarkhawan (MMD) during the month of Ramadan. and Noreen Zindagi Welfare
MMD has been providing Trust. Chaand Raat celebration
free meals to underserved Purkhuloos Campaign including activities like Henna
community for over one year, A campaign was designed to give application for girls and
whereby it has distributed over special treat and hygiene sessions haircut/grooming for boys.
l Grand Iftar party of 1000 the noble cause of inclusive unserved and underserved.
beneficiaries at PIMS Hospital education. This is a state-of- With this, MPCL not only
and Jaffar Chowk Mehrabad. the-art facility that will cater resolves the issue of poor
to all types of disabilities, communities who are either
2. Sarbuland – MPCL Initiative while preparing them for deprived of this basic facility
for Economic Empowerment mainstreaming and becoming or have to face long hours
(Collaboration with Akhuwat self-sustainable. With a Vision of load shedding. In the first
for Microfinance Lending) “Leaving No One Behind”, it is phase, company is focusing
In collaboration with Akhuwat our earnest desire and effort to on the public places where
MPCL initiated a project provide an environment, which people come for multiple
“Sarbuland” for Economic is the best in Pakistan, so as to purposes. Over 100 projects
Empowerment. The pilot project harness the abilities of disabled of solarisation have been
“Sarbuland” has disbursed children and to provide them initiated in the operational
Microloans among deserving with opportunities for becoming area of Daharki, which will
beneficiaries for economically useful and esteemed members be soon followed by the
viable entrepreneurial/small of our society. The school similar interventions in North
scale ventures, as verified by currently has an enrollment Waziristan.
Akhuwat assessment team. of over 200 students with
Fifty micro-loans have been diverse disabilities and it has CSR Awards and Recognition
distributed to entrepreneurs it has implemented modern MPCL’s CSR innovative initiatives
and small business owners, out rehabilitation techniques to and best practices were duly
of which 17 are women. provide premium services to the recognized at the 14th National
students. Forum for Environment & Health
3. Noor-e-Sehar Special CSR Awards 2022, held at Serena
Education School – A Success 4. Roshan Ehd: Hotel Islamabad in February 2022.
Story The concept of Roshan Ehd The Company won the following
The establishment of “Noor- begun with the idea to lighten awards at the ceremony:
e-Sehar Special Education up the country by providing
1- Best CSR practices and
School” at Mari Field Daharki clean affordable and reliable
Sustainability Initiative
is a practical manifestation energy resources (solarisation)
of MPCL’s commitment to specially to the ones who are 2- Outstanding Contribution for
National Game
Noor-e-Sehar 100 Days Celebration for Inclusive Education - Daharki, Sindh

3- Economic Empowerment Sustainable Development Goal 2

Initiative during Covid-19 – Zero Hunger
4- Inclusive Education End hunger, achieve food security and improved nutrition and
promote sustainable agriculture.
MPCL Contributions for
Sustainable Development Goal 3
Miscellaneous Social Initiatives
– Good Health and Well Being
1- 3-Day Free Eye Camp at Mari
Field Daharki. With the aim to ensure healthy lives and promote well-being for
all of all ages.
2- MPCL IBA Sukkur Scholarship
Program. Sustainable Development Goal 4
– Quality Education
3- Renovation of Levies
Infrastructure, Kohlu. To ensure inclusive and equitable quality education for lifelong
learning opportunities for all.
4- Donation to Armed Forces
Institute of Cardiology for Sustainable Development Goal 6
purchase of expensive heart – Clean Water and Sanitation
implants. To ensure availability and sustainable management of water and
5- Donation to government schools sanitation for all.
for uplifting of infrastructure. Sustainable Development Goal 7
6- Mari hockey team’s participation – Affordable and Clean Energy
in “All Pakistan Commissioner
To ensure access to affordable, reliable, sustainable and modern
Gujranwala Gold Cup” and energy for all.
winning gold medal.
Sustainable Development Goal 8
7- Selection and participation of six – Decent Work and Economic Growth
MPCL hockey players in National
training camp for preparation of Promote sustained, inclusive and sustainable economic growth,
full and productive employment and decent work for all.
“Asia Cup” played in May 2022.
8- Conducted Light & Sound Show Sustainable Development Goal 13
– Climate Action
at Pakistan Monument on 14
August 2021 to commemorate To take urgent actions to combat climate
Independence Day of Pakistan. change impacts.
Distribution of Ramazan Food Packages - Rawalpindi

Flood Relief
Initiatives
by MPCL
MPCL Flood Relief
Activities
Since mid-June 2022, Pakistan
has witnessed extreme monsoon
rains that have led to the Country’s
worst flooding in a decade.
According to National Disaster
Management Authority, the floods
have affected more than 33 million
people, destroyed or damaged
more than 1 million houses, and
killed at least 1,100 people. The
affected population is in dire need
of humanitarian assistance to
avoid malnutrition and waterborne
diseases.
MPCL is responding to this disaster

by providing ration packs and fresh
meals to the flood affected people
and arranging free medical camps
in the flood affected areas.
Balochistan Flood Relief

• 928 people treated at MPCL
free medical camp organized
from August 4-6, 2022, at
Aab-e-Gum in the Balochistan
district of Kacchi
• 650 dry ration packs

distributed
Sindh Flood Relief
KPK Flood Relief • Providing ration bags, fresh fully functional for essential free
• Mari Mobile Dastarkhawan meals and tents to the affected medical care to patients
(MMD) distributed 1000 meals families • Restored local routes/tracks
at two villages in Charsadda, • Free medical camps and infrastructure to keep them use-
KPK mobile dispensaries are worthy for public
• MMD will continue to provide providing checkups and free • Provided 2x new water lifting
1000 meals every day at medicines to sick / patients. pumps to Daharki Administration
Charsadda, Noshera, and • Kept Mother and Child Health for de-watering of urban areas and
Swabi for one week Center, TB and Asthma Clinics 4x4 vehicle for relief activities
Sustainable Development Goals

tolerance for sexual or gender l Awareness sessions like
based harassment. “Breast Cancer” are arranged
for female employees of the
l 24% females inducted in Company.
SEED to promote women in
STEM (Science, Technology, l Gym facility with dedicated
Engineering and Mathematics) timings for female employees
SDG 5 roles is available.
(Gender Equality)
l Gender inclusive job
It is the policy of the Company to
advertisements are created to
provide employment opportunities
encourage women to apply.
without regard to race, religion,
Selection, however, is purely
color, age or disability subject
based on Merit.
to suitability for the job. Specific
measures taken by the Company l Fully equipped day care center
to encourage gender diversity are with trained staff is available SDG 7
listed below: for MPCL’s working mothers. (Affordable and Clean Energy)
l HR policies introduced to l Natural gas is a cleaner source

l A female director has been
further promote diversity and of energy compared with
appointed on MPCL Board of
inclusiveness and to enable coal and other fossil fuels.
women to in STEM roles, Directors.
Indigenous gas produced by
benefits such as extended
l Women’s Day is celebrated MPCL is much cheaper than
maternity leave, and work
every year in the Company to the imported RLNG, which is
from home options have been
acknowledge the contributions priced under a ring-fenced
passed-on.
of female workforce of MPCL. full cost recovery mechanism.
l An Anti-Harassment Policy is MPCL is contributing to meet
in place, demonstrating zero affordable and clean energy
requirements of the Country management and outsourced state-of-the-art equipment and

by supplying gas to IPPs for workers at Islamabad. technology in its seismic, drilling and
electricity generation and fuel production operations to enhance
l Putting safety first, all
gas to fertilizer sector. efficiency and safety of operations
employees ensure safe working and minimize their impact on
l The Company monitors its conditions at all times. ecosystem. HRL Debottlenecking,
GHG emissions for calculation GTH and Asset Integrity Campaign at
l Apart from collaborating with
of environmental impact of its the Company’s principal Mari Field
the Country’s top universities
operations. This help in gauging at Daharki are a few examples of
to provide scholarships to
the margins of improvement for the Company’s efforts for finding
the deserving students, the
carbon footprints reduction. innovative solutions to emerging
Company has launched SEED
challenges and infrastructure
l Going forward, the Company Program (Management Trainee
development for greater good.
aims to minimize its carbon Program) to impart necessary
footprint by investing in skills in the young graduates
renewables. The Company’s and prepare them to join the
vision is to become one of Company in future.
the largest sustainable energy
l Selection however, is purely
producers of the Country by
based on merit.
2030.
l With the aim of enhancing

employment opportunities SDG 12
and alleviate poverty amidst
(Responsible Consumption
the onslaught of Covid-19, the
and Production)
Company has disbursed 50 x
microloans in district Mianwali l Pakistan has the sixth largest
for economically viable fertilizer industry in the world.
SDG 8 entrepreneurial/small scale Agriculture accounts for over
(Decent Work and ventures under MPCL’s Initiative 20% of Pakistan’s GDP which
Economic Growth) for economic empowerment employs 42% of the labor
called “Sarbuland”. force. MPCL is contributing
MPCL is an employer of choice for
around 18% in the GDP through
the young and the experienced alike
supplying uninterrupted
and provides a work environment
feedstock and fuel gas to the
that ensures employee dignity, self-
fertilizer industry.
respect, fair pay and sustainable
growth opportunities. l In the continuous pursuit
of meeting the energy
l The companies' compensation
requirements of the Country,
plans are benchmarked against
industry practices to ensure SDG 9 MPCL is undertaking a
mammoth project of gas
equity across organization as (Industry, Innovation and
processing facilities which will
well as the oil & gas industry. Infrastructure)
add 110 MMSCFD of pipeline
l All MPCL offices, operational MPCL seeks to continuously specs gas in the National Grid is
sites and company provided enhance exploration and production expected to completed by Q2 of
accommodations offer the best of hydrocarbons by exploiting FY 2023.
facilities. breakthroughs in knowledge,
innovations in technology and
l Food and accommodation adopting competitive industrial
is provided to the non- practices. The Company employs
Information Technology
Information that yield better geological The availability of accurate and
insights. These systems help good quality data is the life blood
Technology & Digital improve discoveries’ success rates of Exploration and Production
thus making the Company well (E&P) companies. Effective E&P
Transformation at distinguished, in the E&P sector. data management plays a crucial
MPCL role in analysis of large volumes of
data, correct selection of drilling
Mari Seismic Data Processing targets and efficient management
MPCL’s commitment to Center (MSPC) plays a vital role by of oil and gas producing reservoirs.
leveraging latest technologies providing high quality and state of Implementation of state of the art
for improving transparency, the art 2D and 3D data processing integrated E&P data management
reporting and governance facility, which helps the Company system has led MPCL to the
in making more cognizant introduction and adoption of
Mari Petroleum has been a leader in decisions on the technical front. industry’s best practices regarding
adopting technological innovations It’s scalable infrastructure greatly standardized data management
as a frontrunner in sustainability helps in the application of latest related workflows.
and operational excellence. The geophysical technology across the
Company strongly believes in full spectrum of seismic imaging To support high performance
heightened collaboration between its and reservoir characterization. systems and fulfill infrastructure
technical and other functional areas In view of growing expansion requirements of G&G software/
which help steer the selection and in MPCL’s exploration activities applications, Virtual Desktop
implementation of its information which demand a steady increase in Infrastructure (VDI) System
systems. The latter provides greater MSPC’s computation capabilities, was indigenously designed and
integration amongst cross-functional the system has been upgraded implemented by MPCL’s in-house
teams to induce effective planning, from 96 cores to 1024 cores for IT team. This not only helped
coordination and decision making time, depth and parallel processing in saving the potential capital
during various E&P related activities. simultaneously. Advanced investment required for acquisition
processing modules coupled with of high end workstations hardware,
Our exploration and reservoir increase in computational power but also enhanced MPCL’s
departments use industry leading will enable MSPC to provide depth centralized processing capability
G&G interpretation and reservoir and time processing services with for high performance demanding
modeling software suites developed improved quality and in reduced technical software applications,
by renowned companies like time, as well as acquire the in addition to making MPCL a
Schlumberger and Halliburton. capability of handling multiple 2D’s pioneer in implementation of VDI
Integrated workflows provide and 3D’s time and depth projects infrastructure within the local
geophysicists and geologists with simultaneously. E&P Industry. During COVID-19
critical collaborative capabilities
outbreak, the VDI System enabled automated and brought together conducting feasibility analysis for
the users to securely connect to its key workflows using latest incorporation of newer and better
MPCL’s network and complete their ERP solutions. A dedicated team modules within its ERP toolkit. The
tasks seamlessly, while working has been assigned the mandate adoption of latest ERP features and
from home, thus helping them meet for maintaining and expanding functionality is undertaken by the
deadlines without any productivity the ERP deployments across Company after thorough testing,
& efficiency loss. the Company. Keeping in view skills development, user training and
the overarching nature of ERP through a comprehensive change
In pursuance of gaining process solutions, MPCL places serious management process to mitigate the
efficiency & paperless office consideration in identification risks generally associated with ERP
operations, digital transformation and management of risks projects.
is part of Company’s IT Strategy. In associated with its ERP projects.
this regard, SAP modules including To avoid innate risks of excessive
Master Data Governance (MDG), customization, the Company Policy for Safety of
Health, Safety, Environment and tries to achieve balance between
Quality Management Systems, customization of its existing Records
Cross Application Timesheets systems to facilitate seamless
(CATS), Plant Maintenance at Rig integration of the ERP solution, Value creation through data
4, MSUs (Alpha, Beta, Charlie) thus leveraging the benefits of tried governance
and SGPC (GTH), Ariba-Sourcing and tested business processes
and Success Factors are being from the industry. Keeping in MPCL adopts industry leading
implemented. During COVID-19 view the significance of senior software systems to ensure secure
breakout, the Company automated management’s support towards the and fast transmission of financial
a number of manual processes, success of an ERP project, MPCL data for recording and reporting of
such as SAP System integration follows a systematic approach financial transactions. The Company
with banks for online payments/ towards building use cases and has implemented Microsoft
transfers instead of cheque
issuance, invoice verification
and payment approval, online
minutesheets, and transformed
various paper based approvals to
online workflows. The Company
has also initiated a project for
Enterprise Data Management
and Analytics for helping the
management in making data
driven decisions. In this regard,
various business intelligence
(BI) dashboards are developed
for MPCL’s senior management
and operational staff, to facilitate
insightful decision making.
Enterprise
Resource Planning
(ERP)
To streamline its core business
processes and operations with
a view to optimize performance
and productivity, the Company has
Information Technology
labeling the information with comprising of IT policies, standards,

predefined sensitivity classification processes and procedures. The
levels, thus ensuring the availability Company’s IT related initiatives
of Company’s critical information and functions are overseen by a
only to authorized users. Steering Committee headed by the
Managing Director with all Heads
of Departments as its members.
Disaster Recovery The Committee meets on quarterly
Plan (DRP) basis to evaluate and ensure that
the IT Strategy is aligned with
Resilience and contingency Company’s business objectives,
planning for information and effective controls are in place
security incidents to safeguard its information assets.
The Committee also ensures that
MPCL’s DRP provides a structured the requirements of Information
approach for responding to Security Management System
SharePoint System that extends unexpected events which threaten (ISMS 27001:2013) are adequately
technological edge for safe and fast Company’s IT infrastructure met and identifies and oversees
data storage and retrieval. encompassing hardware, software, implementation of continual
networks, processes and people. improvements in the ISMS
The system is an effective business Priorities and recovery time systems. IT Governance, being an
productivity platform equipped with objectives for critical systems integral part of MPCL’s corporate
well-integrated set of technologies are developed in light of business governance, helps the Company
to bring information management, impact analysis. DRP is periodically in creating value using IT systems
access, collaboration, people driven tested and improved to help and assets towards achievement
processes and business critical enhance the efficacy of recovery of business strategies and goals,
document management to a single procedures and processes to complying with legal, statutory and
environment, while ensuring strict ensure Company’s readiness in regulatory obligations, providing
access control for its users on need- terms of infrastructure capabilities, assurance to stakeholders
to-know basis. in order to minimize system and increasing returns on IT
downtime during disaster situations. investments. Fully understanding
The Company securely maintains A state of the art remote Disaster the interdependent connection
soft copies of supporting financial Recovery site has been established between IT Governance and
documents and records in its SAP at one of MPCL’s field locations. cybersecurity, the Company keeps
System, which is only accessible to cybersecurity and various strategic
authorized users. Regular backups elements including long term and
of SAP System are also secured. IT Governance short term organizational goals, IT
vision and mission, assumptions,
The Company has categorized its
& Information limitations, requirements, critical
various information assets on basis Security Strategy projects, and timelines, fully
of their significance and criticality aligned with each other. This
towards achievement of Company’s Enforcement of policies, commitment is put into effect
corporate objectives, and has procedures, responsibilities through the amalgamation of
subsequently devised security and regulatory frameworks processes, procedures, resources
controls for ensuring confidentiality, and technologies. MPCL’s ISMS
integrity and availability of its assets MPCL’s initiatives on IT Governance Policy, Vision and Mission, Core
in accordance with their respective provide necessary guidelines Values, Code of Conduct, Growth
criticality levels. Assignment of to ensure effective input and Strategy and Management
access privileges and segregation of decision-making, improve the System Procedures, along with
information residing on these assets overall management of IT and cybersecurity hardware and
is based on identification of asset optimize value creation from software solutions, third party
owners, risk owners, information Company’s IT investments, services, skilled human resources
custodians and users along with through a specialized framework and industry collaborations,
are the core pillars upholding 2020-21. Having identified the need
MPCL’s strategic pursuits vis-a-vis and usefulness of cybersecurity
cybersecurity. audits of Company’s operational
assets like SCADA systems
characterized by an immaculate
Risk Based configuration of IT and OT solutions,
Approach the Senior Management has issued
the mandate of conducting in-
Overseeing risks and IT house cybersecurity audits of such
governance for prompt installations, at least once a year.
resolution of security matters During FY 2021-22, the in-house
cybersecurity audit was conducted
Following a proactive risk based at the SCADA installation at Sujawal
approach, MPCL identifies and Field.
records risks to its information
assets, in departmental risk registers
which are regularly updated and
Security assessment and security testing
subjected to review and audit during Assessment tools which are widely adopted and
internal management reviews as endorsed by various Fortune 500
well as third party external audits. Evaluating and securing companies.
technology, environment and
infrastructure
Within the rapidly evolving cyber
threats landscape, the Company’s
Cybersecurity
IT team regularly undertakes MPCL has devised comprehensive Training and
operational and technical measures
like penetration testing, security
management system procedures
to incorporate provisions for
Education
hardening and capacity development third party independent security
Staying abreast with latest
to reduce technology related risks assessments of is technology
concepts and technologies
in a timely manner. The findings and environment. As part of MPCL’s
results of management reviews and compliance management program, MPCL is fully cognizant of its
compliance audits, both internal surveillance audits are conducted responsibilities towards imparting
as well as external, are presented every year and recertification knowledge about latest risks
to MPCL’s Senior Management for audits are conducted after every and cybersecurity trends to its
timely rectification of cybersecurity three years by the international employees, realizing the role
risks and futuristic planning assessment and certification of human beings in upholding
for preparedness and prompt company named SGS. The Company the efficacy of a cybersecurity
incident response. As mandated by also regularly engages with program. In-house awareness
Company’s internal audit charter, leading cybersecurity companies sessions covering various aspects
the results may also be presented and third party solution providers of cybersecurity, are regularly
to the Board’s Audit Committee for penetration testing, security conducted for all employees.
during quarterly committee meetings assessment and hardening of its Latest cybersecurity news and
and exclusive committee meetings, information systems, and plans to international developments are
which helps the Company in swiftly continue expanding its professional closely monitored for staying
addressing high priority risks and associations in future as well. Since abreast with global trends.
adopting better and innovative FY 2020-21, the Company has Employees are also exposed to test
approaches to risk management. adopted an ongoing methodology scenarios, without being aware of
for regular penetration testing of the activity, in order to assess their
In view of its fast growing operations, its information assets by cyclically understanding and commitment
MPCL further extended the scope testing client and server computing to Company’s cybersecurity
of its risk management activities machines and communication related guidelines. The results of all
through conducting the first in-house and storage devices using its activities pertinent to training and
cybersecurity audit of its SCADA in-house resources and globally awareness, are regularly reviewed
installation at MDCPF during FY renowned specialized vulnerability by the senior management.
Awards and During the year, the Company won a number of awards from
various independent bodies not only for its financial and operational
Recognitions performance and reporting but also for its management, HSE, and
CSR practices. Major awards won by the Company included:
MPCL won 1st Prize for the “Best MPCL Annual Report 2020 won
Management Practices” in Oil 1st Position in Fuel & Energy
& Gas Sector, at 36th Corporate MPCL won “All Pakistan Category Best Corporate and
Excellence Awards Ceremony Commissioner Gujranwala Gold Sustainability Report Awards
arranged by the Management Cup Hockey Tournament- 2022” arranged by ICAP and ICMAP
Association of Pakistan (MAP) on organized by Pakistan Hockey and announced in the Business
Oct 28, 2021 Federation on February 19, 2022 Recorder on August 27, 2021
MPCL won four prestigious awards for

(i) Best CSR Practices and Sustainability
(ii) Inclusive Education ICCI Business Excellence Award
(iii) Outstanding Contributions to National Game, and for Top Taxpayer Company -
(iv) Economic Empowerment Initiatives, Private Sector, Islamabad Region
at 14th Annual CSR Summit & Awards 2022, organized by the National (2021-22), awarded by President of
Forum for Environment & Health on February 24, 2022 Pakistan on July 17, 2021
MPCL won “All Pakistan Commissioner Gujranwala MPCL ranked 7th Top Company among the top 25
Gold Cup Hockey Tournament- 2022” organized by companies on Pakistan Stock Exchange for the Year
Pakistan Hockey Federation on February 19, 2022 2020 announced by the PSX on March 28, 2022
Major Social Events

It is important for an organisation to provide employees with ample opportunities to build quality relationships with their
co-workers. Although, such opportunities can be provided on-the-job and in more formal ways, however, arrangement
of informal get-togethers away from work undoubtedly are the most effective ways of bringing employees from various
departments together to know one another in an informal environment, to interact and to have fun and entertainment.
Relationships built in informal settings such as dinners, Light and Sound show, Ramadan Get together, corporate retreats,
Eid Milan etc. have more personal touch, are deeper, longer lasting and easily carried into work life Living by the above
philosophy, the Company arranged following major events during the year.
Light & Sound Show Aug-2021
Quaid-e-Azam DayDec-2021
Ramadan Get TogetherApr-2022

Eid Milan May-2022
Table Tennis JUNE-2022
Non-Mgt Annual Function

Jun-2022
Independence Day Aug-2022

Corporate Governance
MPCL Board of Directors
Roles of the Chairman applicable laws, rules and regulations. At Operations of the Board
and the MD/CEO the start of the term of newly appointed The Board is responsible for setting
The Chairman of the Board and directors, the Chairman informs them strategic objectives, overseeing the
the Managing Director/CEO of the about their roles, responsibilities, duties effective management and control of
Company have well defined, separate and powers to help them effectively the Company, and identifying significant
but complimentary roles in line with discharge their duties and responsibilities. business risks and ensuring that
the Companies Act 2017, and the policies and mechanisms are in place to
Listed Companies (Code of Corporate Managing Director/CEO adequately manage those risks.
Governance) Regulations, 2019. The Managing Director is responsible
for providing effective leadership The Board has delegated certain
Chairman MPCL Board to the management team and responsibilities to its Committees for
The Chairman is responsible for employees. He oversees the day-to- review of relevant matters and making
providing effective leadership to the day operations and management of recommendations to the Board. All
Board, particularly during the Board the Company’s business and affairs Committees operate in accordance with
and the shareholders’ meetings. He by ensuring that the executive team their TORs approved by the Board. The
sets the agenda of the Board meetings implements the policies and strategies permanent Committees of the Board are
and ensures that reasonable time approved by the Board. He keeps the Audit Committee, Human Resource
is available for discussion on each the Board updated on significant and & Remuneration Committee, Technical
agenda item. sensitive issues that might affect the Committee, and Investment Committee.
Company’s operations, reputation, or
He ensures a conducive environment financial standing. He ensures that Any agenda or matter that requires
for overall effectiveness of the Board, operational plans and control systems Board’s approval is first presented to
and facilitates and encourages the are in place, and regularly monitors the relevant Committee which, after
contribution of executive, non-executive, actual performance against plans thorough deliberations, presents its
and independent directors in carrying and takes remedial actions, where recommendations to the Board for final
out the Board’s business in line with the necessary. decision.
The Board has delegated the day to f. Strategy and direction, financial controls, legal and regulatory compliance,
day management of the affairs of risk management, related party transactions, company’s significant
the Company to the management policies, changes to the company’s capital structure, diversification
through the MD/CEO, subject to the projects, acquisition and relinquishment of working interests, major capital
agreed authority limits as provided expenditures, annual performance incentives for the employees
in the Articles of Association of the
g. Major transactions which exceed MD’s authority or which are outside the
Company, the Managing Director’s
ordinary course of business
General Power of Attorney, and the
Limits of Authority Manual, which is h. Delegation of authority to the Management
revised from time to time. [*final dividend and appointment of statutory auditors is subject to approval
by the shareholders]
However, the following matters of
Chairman’s Significant Commitments
strategic, sensitive or extraordinary
Mr. Waqar Ahmed Malik, Chairman MPCL Board of Directors is the Managing
nature are reserved for the Board to
Director of Fauji Foundation. In addition, he is the Chairman of the Boards of all
ensure the highest level of oversight
Fauji Foundation Associated and Subsidiary Companies. A list of these companies
and control in line with good
is included in the Chairman’s Profile in this Annual Report as well as on MPCL
governance practices or as required
Website.
under the relevant corporate laws or
where these exceed the thresholds
Mr. Waqar Ahmed Malik was appointed as Chairman of the Board in April 2020
set in the authority delegated to the
(re-appointed in July 2022) and since then there has been no change in his
management.
significant commitments.
Matters Reserved for the Board
Attendance at Board Meetings
a. All matters listed in Section
Seven Board meetings were held during the financial year 2021-22. The
183 of the Companies Act
attendance of directors in the meetings was as under:
2017, Clause 10 of the Listed
Companies (Code of Corporate Meetings
Sr# Name
Attended
Governance) 2019, and any other
provisions of the applicable laws, 1 Mr. Waqar Ahmed Malik 06
rules and regulations. 2 Mr. Faheem Haider 07
b. Appointment and removal of: 3 Dr. Nadeem Inayat 07

4 Syed Bakhtiyar Kazmi 071
i. Members of the Board and
its Committees including the 5 Maj Gen Ahmed Mahmood Hayat (Retd) 06
Chairman 6 Maj Gen Naseer Ali Khan (Retd) 072
7 Mr. Ali Raza Bhutta 033
ii. CFO, Head Internal Audit
and Company Secretary 8 Dr. Arshad Mehmood 04
9 Mr. Haroon-ur-Rafique 074
iii. Senior Management Staff
10 Mr. Abdul Rasheed Jokhio 07
reporting directly to the
Managing Director 11 Syed Khalid Siraj Subhani 045
12 Mr. Shahid Saleem Khan 03
iv. Statutory Auditors*
13 Mr. Ahmed Hayat Lak 07
c. Directors’ remuneration 14 Mr. Adnan Afridi 07
d. Annual review of the 15 Ms. Ayla Majid 076
performance of the Board, 16 Mr. Abid Hasan 07
Committees and individual
17 Ms. Seema Adil 08
Directors
1. Tenure completed on June 23, 2022
e. Approval of quarterly and annual 2. Tenure completed on June 23, 2022
financial statements, dividends* 3. Joined the Board in December 2021 in place of Dr. Arshad Mehmood
4. Nomination withdrawn w.e.f June 23, 2022
and bonus shares, and significant 5. Joined the Board in October 2021 in place of Mr. Shahid Salim Khan
6. Tenure completed on June 23, 2022
change in accounting policies or 7. Joined the Board in June 2022
practices 8. Joined the Board in June 2022
Other Directorships of the executive directors, including A detailed SOP is in place for security
Executive Director three independent directors who clearance and provision of security to
MD MPCL is the only executive represent the shareholding interest the foreigners coming into Pakistan
director on MPCL Board. He is the of minority shareholders. to work with the Company. Security
Chairman of the board of Foundation Section of MPCL’s Administration
Solar Energy Limited and a non- In compliance with the regulatory Department undertakes coordination
executive director on the boards of requirements, a female director with Ministry of Interior for all
Pakistan International Oil Limited and was elected on the Board in the security related matters. Supporting
Fauji Akbar Portia Marine Terminal elections held on June 22, 2022. documentation is provided by the
Limited. Corporate Affairs Department.
Directors’ Orientation and
External Search Consultancy and Trainings MD/CEO Performance Review
its Connection with the Company As on June 30, 2022, ten (10) A Performance Scorecard is in place to
The services of M/s Ward Howell were directors on MPCL Board were objectively measure the performance
used by the Fauji Foundation for head certified under SECP approved of the Managing Director and top tiers
hunting for the position of MD/CEO Directors’ Training Program (DTP). of the Management on key operational
MPCL back in 2020. M/s Ward Howell In line with the good governance and strategic parameters, and their
has no connection with MPCL. No practices, DTPs were arranged from variable pay is linked with the score
external search consultancy was used the Pakistan Institute of Corporate achieved on the Scorecard. For the
for the selection and appointment Governance for uncertified directors FY 2021-22, actual performance as
of the Chairman or any of the Non- and all of the Directors became per the Scorecard was presented to
Executive Directors on MPCL Board. certified during the year. The the Board on a quarterly basis, while
number of certified directors was performance for the whole year was
Policy for Retention of Fee by an 91% as on June 30, 2022 due to presented to the Board through the
Executive Director joining of new members after the HR&R Committee in the Board meeting
As per the Directors’ Remuneration election of directors just before held on August 04, 2022.
Policy of the Company, the executive the close of the financial year.
director is not entitled to any fee for The directors training program for In addition, MD/CEO’s report on
attending the board, committee or one newly elected director will be the Company’s operations, major
general meetings of the Company. arranged in due course. achievements, and the progress on
However, he can retain the fee outstanding issues is presented to the
received from any other company In addition to the trainings within Board of Directors as a regular agenda
where he serves as non-executive the Country, the Directors are item in each meeting for review,
director. also sent on trainings at reputable discussion and decisions, all of which
institutions abroad to acquaint are duly recorded in the minutes.
Board’s Policy on Diversity them with the latest developments
MPCL has a diverse and balanced and trends in the areas of Committees of the Board of
Board that provides a mix of governance, management and Directors
professional expertise in leadership, leadership. The Board of Directors oversees the
finance, economics, engineering, operations and affairs of the Company
legal, corporate law, oil & gas From time to time, orientation in an efficient and effective manner.
exploration and production disciplines. sessions are carried out to apprise For the sake of smooth functioning, the
The collective experience of the the Board Members about the latest Board has constituted four Committees
Board members adequately covers changes in corporate regulatory and to ensure speedy management
all aspects of MPCL’s business governance regime in the Country. decisions relating to their respective
undertakings. domains.
Security Clearance of Foreign
The Board follows the diversity Directors Audit Committee:
parameters set in the Listed MPCL has never had a foreign Role
Companies (Code of Corporate director on its Board. In case a The primary role of the Audit
Governance) Regulations, 2019. foreign director is elected on MPCL Committee is to provide oversight of
Board in future, security clearance the financial reporting process, the
Currently the Board comprises will be obtained from the Ministry audit process, the system of internal
of one executive and ten non- of Interior through the SECP. controls, compliance with applicable
MPCL Senior Management
laws, rules and regulations, and c. Review of Company’s annual k. Ascertaining that the internal
enterprise risk management of the budget, forecasts and any budget control system including
Company. re-appropriations. financial and operational
d. Review of preliminary controls, accounting system for
Composition announcements of results prior timely and appropriate recording
The Committee shall comprise of to external communication and of purchases and sales, receipts
five members. All members of the publication; and payments, assets and
Committee shall be non-executive liabilities and reporting structure
e. Facilitating the external audit and
directors, at least one of whom are adequate and effective;
discussion with external auditors
shall be an independent director. l. Review of the Company’s
of major observations arising
The Chairman of the Committee statement on internal control
from interim and final audits
shall be an independent director. systems prior to endorsement
and any matter that the auditors
may wish to highlight (in the by the Board of Directors and
Terms of Reference internal audit reports;
absence of management, where
a. Determination of appropriate necessary); m. Review significant legal,
measures to safeguard the regulatory and tax matters
f. Review of management letter
company’s assets; having a material impact on the
issued by external auditors and
b. Review of annual and interim management’s response thereto; Company
financial statements of the n. Instituting special projects,
g. Ensuring coordination between
Company, prior to their approval value for money studies or
the internal and external auditors
by the Board of Directors, other investigations on any
of the Company;
focusing on: matter specified by the Board
h. Review of the scope and extent
l major judgmental areas; of Directors, in consultation
of internal audit, audit plan,
significant adjustments with the CEO and to consider
l reporting framework, audit
resulting from the audit; remittance of any matter to the
reports significant findings,
external auditors or to any other
l going-concern assumption; and procedures and ensuring
external body;
that the internal audit function
l any changes in accounting
has adequate resources and is o. Determination of compliance
policies and practices;
appropriately placed within the with relevant statutory
l compliance with applicable Company; requirements;
accounting standards; p. Monitoring compliance with
i. Review training and development
l compliance with corporate needs and succession planning of the Corporate Governance
governance regulations the internal audit function Regulations promulgated by
and other statutory and SECP and identification of
j. Consideration of major findings
regulatory requirements significant violations thereof;
of internal investigations of
l all related party activities characterized by fraud, q. Recommending the hiring or
transactions corruption and abuse of power removal of the Chief Internal
l material off-balance sheet and management’s response Auditor and his performance
items thereto; appraisal on annual basis.
r. Review whistleblowing policy ii. Delineate Company’s overall are undertaken by the
and mechanism for staff risk appetite and tolerance Management.
and management and other level in relation to risks.
x. Evaluate special cases
stakeholders to report to audit
iii. Ensure that Company’s overall where a risk (or risks) fall
committee in confidence,
risk exposure is maintained at outside published guidelines
concerns, if any, about actual
prudent levels and consistent and thresholds and make
or potential improprieties in
with the Company’s strategy. recommendations on
financial and other matters and
appropriate action to the
recommend instituting remedial iv. Evaluate annually the
Board.
and mitigating measures;Monitor adequacy of the risk
the Company’s placement of management function,
Attendance in the Audit
funds and related policy matters including the background and
Committee Meetings
on quarterly basis. experience of key senior risk
Twelve meetings of the Audit
officers, staffing adequacy,
s. Recommend to the Board of Committee were held during the
and the independence
Directors the appointment of financial year 2021-22. The attendance
and authority of the risk
external auditors, their removal, of the directors in the meetings was as
management function.
audit fees, the provision of under:
any service permissible to be v. Review periodic reports
related to management’s Meetings
rendered to the company by the Director
Attended
external auditors in addition to assessment of the Company’s
audit of its financial statements, risk management performance, Ms. Ayla Majid 1, 2 12
measures for redressal and and any other tools or reports Syed Bakhtiyar Kazmi 2
11
rectification of non-compliances used by management to Mr. Abdul Rasheed Jokhio 12
with the Regulations. The assess and discuss the
Mr. Ahmed Hayat Lak 12
board of directors shall give categories of risk faced by
due consideration to the the Company, the exposures Mr. Adnan Afridi 12
recommendations of the audit in each category, significant 1. Ms. Ayla Majid is an independent, non-
executive director
committee and where it acts concentrations within
those risk categories, the 2. Ms. Ayla Majid and Syed Bakhtiyar Kazmi
otherwise it shall record the
both qualify as financially literate
reasons thereof; metrics used to monitor the
*Committee was reconstituted
exposures, and management’s w.e.f. July 02, 2022
t. Consideration of any other
views on the acceptable and
issue or matter of significant
appropriate levels of those risk HR and Remuneration Committee:
importance or matters as may
exposures. Role
be assigned by the Board of
Directors; vi. Review the Company’s ERM The major role of the Committee
Strategy and ERM Policy is to review HR related matters
u. Approval of resolutions for of the Company and present its
to ensure their suitability,
transfer of shares and issuance recommendation to the Board for
including adherence to
of duplicate share certificates of consideration and approval.
relevant legislation and
the Company, as per provisions
regulations.
of the Companies Act, 2017
Composition
(resolutions to be signed by any vii. Ensure that the risk
The Committee shall comprise of
two members). management function has
five members. All members of the
adequate resources and has
v. The responsibilities of the Committee shall be non-executive
a well-defined Annual Risk
Committee with regard to Directors. The Chairman of the
Management Plan.
Enterprise Risk Management, Board shall not be a member of the
inter alia, include the following: viii. Review key projects of Committee. The Chairman of the
strategic nature from risk Committee shall be an independent
i. Ensure that the Company
perspective. director.
implements sound
fundamental principles that ix. Review Audit or other findings
facilitate the identification, relating to management Terms of Reference
measurement, monitoring of the Company’s risks Terms of reference of the HR&R
and control of risks. and that follow-up actions Committee are as follows:
a. Recommend to the board for shall be known by the committee Meetings

Director
consideration and approval and a statement shall be made Attended
a policy framework for by them as to whether they have Mr. Adnan Afridi 09
determining remuneration any other connection with the
Maj Gen Ahmad Mahmood 09
of directors (both executive company;
Hayat (Retd)
and non-executive directors
h. Review managements proposals Mr. Shahid Salim Khan 06
and members of senior
for the promotion of employees
management). The definition Syed Khalid Siraj Subhani 021
as direct reports to the MD/CEO
of senior management will be Mr. Ahmed Hayat Lak 09
and make recommendations for
determined by the board which Ms. Ayla Majid 09
consideration of the Board of
shall normally include the first
Directors; 1. Joined the Board in October 2021 in
layer of management below the
i. Review management’s place of Mr. Shahid Salim Khan
chief executive officer level
proposals for changes in the * Committee was reconstituted
b. Undertaking annually a formal w.e.f. July 02, 2022
compensation policy and salary
process of evaluation of
structure of employees and
performance of the board as Technical Committee:
make recommendations for
a whole and its committees Role
consideration of the Board.
either directly or by engaging The Technical Committee shall be
external independent j. Review management’s proposals
responsible to evaluate technical
consultant and if so appointed, for strategic changes in the
aspects of all projects/matters
a statement to that effect Company’s organogram and
pertaining to the Company’s core
shall be made in the directors’ make recommendation for
business i.e. Exploration & Production
report disclosing name, consideration of the Board;
and allied services and make their
qualifications and major terms k. Evaluate the candidates and recommendations for consideration
of appointment; make recommendations for of the Board.
c. Recommending the human the appointment of senior
resource management policies management employees reporting Composition
to the board; directly to MD/CEO and their The Committee shall comprise of
succession planning. For this five members. All members of the
d. Recommending to the Board
particular function, the Managing Committee shall be non-executive
of Directors the employment,
Director will be co-opted member Directors.
evaluation, compensation
of the Committee. The Committee
(including retirement benefits),
may also co-opt any other
and succession planning of the Terms of Reference
director for this purpose; and
CEO. a. Annual Exploration, Appraisal
l. Take up any matter assigned and Development work
e. Recommending to the Board
by the Board and make its program, its budget and any re-
of Directors the employment,
recommendations to the Board appropriations in the approved
evaluation, development,
thereon. budget.
compensation (including
retirement benefits) of the b. Farm-in and Farm-out
The primary role of the Committee is
Chief Operating officer, Chief opportunities including
to review major HR related matters
Financial Officer, Company acquisition of working interest
of the Company and present its
Secretary and Head of Internal in a new block, acquisition of
recommendation to the Board for
Audit; additional working interest in
consideration and approval.
an existing block, partial or
f. Consideration and approval
complete divestment of working
on recommendations of Attendance in the HR&R
interest in an existing block.
CEO on such matters for key Committee Meetings
management positions who Nine meetings of the HR&R Committee c. Relinquishment/surrender of the
report directly to CEO or COO; were held during the financial year Company’s working interest in
2021-22. The attendance of the an existing block.
g. Where human resource and
remuneration consultants are directors in the meetings was as d. Acquisition or disposal of plant,
appointed, their credentials follows: machinery and equipment
pertaining to the Company’s core

operations and allied services,
which exceed MD’s authorized
limit.
e. Capital expenditures pertaining
to the Company’s core
operations and allied services,
not provided for in the approved
annual budget and where these
exceed MD’s authorized limit.
f. Technical aspects of the
Company’s diversification
projects.
g. Any other matter that may be Terms of Reference: Meetings
referred by the Board to the Director
a. The Committee will review Attended
Committee.
and recommend investment Dr. Nadeem Inayat 00
strategy relating to local and
Attendance in the Technical Maj Gen Naseer Ali Khan 02
international growth in core
Committee Meetings (Retd)
business and/or diversification
Three meeting of the Technical Syed Bakhtiyar Kazmi 02
projects. The Committee shall
Committee were held during ensure that such investments Mr. Adnan Afridi 02
the financial year 2021-22. The are made in accordance with Ms. Ayla Majid 02
attendance of the directors in the the Company’s approved capital * Committee was reconstituted
meetings was as under: allocation framework and in w.e.f. July 02, 2022
Meetings
line with Board’s approved
Director
Attended Strategies and policies in force Reports of the Audit Committee
Syed Bakhtiyar Kazmi 03 from time to time
In accordance with its TORs, the Audit
Maj Gen Naseer Ali Khan 03 b. Review external growth Committee reviewed the Company’s
(Retd) opportunities, potential Annual and Interim Financial
Mr. M. Haroon-ur- Rafique 03 diversification projects, Statements, including the non-
acquisitions, or divestment of financial information, prior to their
Syed Khalid Siraj Subhani 03
existing projects/ventures, as publication. The Audit Committee also
Mr. Abdul Rasheed Jokhio 03 periodically reviewed the adequacy
proposed by the Management.
* Committee was reconstituted
and appropriateness of the internal
w.e.f. July 02, 2022 c. Review Management’s
controls, the matters relating to the
proposals for strategic
accounting policies, the financial
alliances with other entities/
Investment Committee: risks and the compliance with the
companies to achieve growth or
Role applicable accounting and reporting
diversification objectives of the
The major role of the Investment standards, and statutory, legal and
Company.
Committee is to evaluate and discuss regulatory requirements. The Audit
the feasibilities of new projects to d. Any other matter that may be Committee also discussed with
ensure growth and diversification of referred by the Board to the statutory auditors the issues arising
the Company’s business. committee. from the interim and the annual
audits along with the Management
Composition Attendance in the Investment Letter issued by them and the
The Committee shall comprise of Committee Meetings management responses thereof.
five members. All members of the Two meeting of the Investment
Committee shall be non-executive Committee were held during Important findings, risks identified
Directors. The Chairman of the the financial year 2021-22. The and follow-up actions were examined
Board shall not be a member of the attendance of the directors in the thoroughly in order to allow
Committee. meetings was as follows: appropriate measures to be taken.
The Audit Committee reports were reputation, professional excellence the Company’s Internal Audit
presented in the Board meetings on and competitive fee. Department:
quarterly basis.
Presence of Chairman Audit a. Control Environment: The
Committee in AGM control environment sets
Director Designation
The Chairman Audit Committee the tone and influences the
Ms. Ayla Majid 1, 2 Chairman is present in each AGM to answer control consciousness of the
Syed Bakhtiyar Kazmi 2 Member the questions pertaining to the personnel. It is the foundation
Committee’s activities during the of all other components of
Mr. Abdul Rasheed Jokhio Member
year and other important matters the internal control, providing
Mr. Ahmed Hayat Lak Member discipline and structure.
which fall within the scope of the
Mr. Adnan Afridi Member Committee’s mandate.
1. Ms. Ayla Majid is an independent, non- b. Risk Assessment: The
executive director Internal Control Framework and Management of the Company
2. Ms. Ayla Majid and Syed Bakhtiyar Kazmi
Role of Internal Audit is responsible for ensuring
both qualify as financially literate.
adequate risk identification
In Compliance with the requirements
and analysis of the relevant
Audit Committee Views on of Listed Companies (Code of
risks to achieve Internal
Financial Statements Corporate Governance) Regulations,
Control Framework objectives.
The financial statements of the 2019, the Board of Directors has set
Company for FY 2021-22 were up an Internal Audit function, which is
headed by the Chief Internal Auditor, c. Control Activities: These are
presented to the Audit Committee
who directly reports to the Audit the policies and procedures
in its meeting held on July 29, 2022.
Committee of the Board. that help ensure that the
The Audit Committee reported to
Management directives are
the Board that the statements were
The Internal Audit function is carried out effectively.
fair, balanced and understandable.
The statements provided the an independent assurance and
consulting activity and is designed d. Information and
shareholders and other readers with
detailed information which they to add value and improve MPCL’s Communication: Pertinent
operations. It helps the Company information must be
can use to assess the Company’s
accomplish its objectives by identified, captured and
performance and financial position.
bringing a systematic and communicated in a structured
disciplined approach to evaluate form and time-frame that
Audit Committee on
and improve the effectiveness of enables people to carry out
Appointment of External
risk management, control, and their assigned responsibilities.
Auditors
governance processes. The main
Every year, the Audit Committee
objectives of MPCL’s Internal Control e. Monitoring: Internal Control
makes its recommendations to the
Framework include: Systems need to be monitored
Board regarding the appointment
by Internal Audit Department.
of statutory auditors and their fee. a. Effectiveness and efficiency of
This process assesses the
The recommendations are based the Company’s operations;
quality of Internal Control
on performance of the Auditor, b. reliability of the internal and Framework in place.
satisfactory rating under QCR external reporting;
program of ICAP, their eligibility to
c. compliance with the applicable In addition, Internal Audit also
be re-appointed (including length of
laws, rules, regulations, policies undertakes special tasks as
their term with the Company) and fee
and procedures; and and when directed by the Audit
quoted for their services.
d. safeguarding of the Company’s Committee of the Board. Internal
The Audit Committee in its meeting assets. Audit plays a central role in
held on July 29, 2022, recommended highlighting weaknesses in the
M/s A.F. Ferguson & Co., for To achieve Internal Control existing system and processes and
reappointment as statutory auditors Framework objectives, following identifying required controls needed
of the Company for FY 2022-23, Internal Control components to strengthen the overall control
based on their performance, market are assessed and evaluated by system.
Corporate Briefing Session, June 24, 2022 - MPCL Head Office, Islamabad
Access of Head of Internal Audit of the Participation and l Minority investors can also lodge
to Audit Committee Shareholders Agreement, their complaints and submit
Head of the Internal Audit has applicable corporate laws, their queries directly to the
direct and unrestricted access to rules, regulations, and Shares Department using the
the Chairman and other Members notifications, notably the conventional mail, fax, email or
of the Audit Committee to discuss Companies Act 2017, the Listed phone.
any matter related to the internal Companies (Code of Corporate l Material Information pertaining
audit function. The Audit Committee Governance) Regulations 2019, to the Company’s operations is
met the Chief Internal Auditor the PSX Rulebook, and the circulated to the Shareholders
and the staff of the Internal Audit Memorandum and Articles of through the PSX, as and when need
Department, without the presence of Association of the Company. arises.
the CFO, in its meeting held on June l Annual and Quarterly
06, 2022. Accounts of the Company Engagement with other
are placed on the Company’s Stakeholders
Engagement with Key Website while Annual Audited Customers: MPCL customers
Stakeholders to understand Accounts are also circulated are mostly corporate entities in
their Needs, Interests and to the Shareholders in CD and dedicated sectors of fertilizer,
Trends physical form (upon request). power and gas distribution with
Major stakeholders of the Company l Besides their right to appoint long term allocations. MPCL
include Shareholders (Institutional directors to oversee affairs of interactions with these customers
and Minority), Customers, Suppliers, the Company, the Shareholders are B2B in nature. The Company
Joint Venture Partners, Regulators, are invited to all the maintains constant contact with all
Banks and other Lenders, shareholders meetings (AGMs, of its customers through periodic
Media, Employees, Social Sector EOGMs) and are encouraged meetings, official correspondences,
Organizations, and Communities in to present their viewpoint on and personal visits.
MPCL Concession areas. important matters.
During FY 2021-22, MPCL arranged
Relationships with different l There is an Investor Relations a workshop with its fertilizer
stakeholders are extremely Section on the Company’s customers to brief them about
important for the Company as website which contains current and projected production
these relationships can impact important Investor specific profile of Mari Gas Field and the
MPCL’s operations, revenues and information as well as an Company’s ongoing as well as
corporate image. MPCL maintains Online Complaint Form for planned initiatives to enhance the
cordial relationships with all of its investors. production plateau and delivery
stakeholders. l The Board has approved an pressures.
Investor Relations & Grievance
Engagement with Shareholders Policy which contains the Suppliers/Vendors/Service
l Relationships with the mechanism for handling Providers: MPCL segments
shareholders are managed shareholders’ complaints and its suppliers, and employs an
in line with the provisions queries. appropriate interaction model for
each segment to maintain a Reaching out to Shareholders l Material Information pertaining

collaborative working relationship for Delivery of Unclaimed to the Company’s operations is
with them. The Company treats Dividends/Shares circulated to the PSX and the
its suppliers as strategic business Pursuant to Section 244 of SECP as and when need arises.
partners for sustainable (reliable, Companies Act 2017, the Company l The Company also participates
ethical, cost effective) sourcing. vigorously tries to reach out to its in the trainings and awareness
shareholders to deliver unclaimed sessions arranged by the
Media: A dedicated team of shares and dividends that have regulatory bodies, from time to
professionals maintains liaison been laying with the Company since time.
with print and electronic media inception. In addition to the attempts
for sustained positive coverage to contact concerned shareholders in
of the Company’s activities Business Ethics and
person, five written reminders have
and achievements through Anti-Corruption Measures
been dispatched since 2016. As a
new items, interviews, articles result, the Company has delivered MPCL conducts its business in a
in special supplements, and about 56,359 unclaimed shares, and socially responsible and ethical
advertisements. dividends amounting Rs. 42.5 million manner and in compliance with the
in the last six years. applicable laws. The Company has
prepared a Code of Conduct which,
Corporate Briefing Session
inter alia, covers the matters such as
The Company carries out periodic Understanding of Major
conflict of interest, business integrity,
briefings for the existing and Shareholders’ Views
gifts, entertainment and bribery,
potential investors and stock Major shareholders of the Company
insider trading and accountability
market participants to apprise them are Fauji Foundation, OGDCL and
etc. Members of the Board and
about the Company’s operational the Government of Pakistan who
employees, while joining and during
and financial performance and the collectively hold 80% shares in
their association with the Company,
Company’s future plans. the Company. Out of 11 directors
are required to read, acknowledge,
on MPCL Board, 8 directors are
and abide by the Code.
During FY 2021-22, two Corporate nominees of/elected by the major
Briefing Sessions were arranged at shareholders. Hence, these non-
The Board has approved a
the MPCL Head Office on November executive directors are well aware of
Whistleblower Policy to encourage
24, 2021, and June 24, 2022. The the views of the major shareholders
employees, who have concerns about
sessions were attended by a about the Company and adequately
suspected serious misconduct or any
large number of market analysts, share those views with other
breach or suspected breach of law or
members of the brokerage houses, directors and management of the
regulation that may adversely impact
shareholders, and employees in Company during the Board meetings.
the Company, to come forward and
person as well as virtually on MS
express such concerns without fear
Teams. Engagement with Regulators of punishment or unfair treatment.
l Relationship with the SECP and
Briefing to the Shareholders the PSX are managed as per the All complaints against the employees
applicable corporate laws, rules, are thoroughly investigated to
Apart from the corporate briefing
regulations, and notifications, determine the veracity of such
sessions, the Managing Director
notably the Companies Act complaints. Inquiry reports are
makes a detailed presentation
2017, the Listed Companies shared with the concerned quarters
during the Annual General Meeting
(Code of Corporate Governance) and where an employee is found
every year to brief the Shareholders
Regulations 2019, the PSX guilty, strict disciplinary action is
on the Company’s performance and
Rulebook, and the Memorandum taken, including termination from the
its future plans. The presentation
and Articles of Association of the Company service.
is followed by Q&A session
Company.
wherein the views of the minority
shareholders are solicited, their l Annual and Quarterly Accounts An independent Internal Audit
concerns are addressed and of the Company are filed with Department periodically reviews
suggestions are noted for suitable the Registrar of the Companies the conduct of the business of each
action. The briefing and Q&A and the SECP and are also department and points out the areas
session are duly minuted. circulated to the PSX. for improvement, if any.
MD’s visit to Bannu West and Zarghun Wells, KP
Conflict of Interest Interested directors and executives Last Annual General Meeting
The matter of Conflict of Interest are required to disclose their (AGM)
relating to Board members is dealt interest and withdraw themselves The 37th AGM of the Company was
with in accordance with the provisions from the discussion or decision on held on October 26, 2021, at 10:00
of the Companies Act, 2017 and the any transaction in which they are a.m., at the Registered Office of the
Articles of Association of the Company. interested. Company situated at 21-Mauve Area,
Any person intending to become a 3rd Road, Sector G-10/4, Islamabad.
Director of the Company has to submit Similarly, MPCL directors and
a declaration that he/she is aware of executives are required to disclose Agenda, Decisions and
the powers and duties of a Director buying and selling of the Company
Implementation
as envisaged in the Companies Act, shares, within the prescribed time-
Agenda Item-1: To receive,
2017 and has read the Articles of frame.
consider and adopt the Audited
Association of the Company.
Accounts of the Company for the
Share Price Sensitivity
year ended June 30, 2021 together
Further, MPCL has a Code of Conduct Analysis
with the Directors' and Auditors'
which covers this area. It is overriding Investor Relations Section on
reports thereon.
intention of the Company that all the Company’s website contains
business transitions conducted important information such as
Decision and Implementation:
by it are on an arm’s length basis. Share Price (along with market
A detailed presentation on the
Adequate internal controls have capitalization and graphical
Company’s operations during
been implemented to ensure that representation of share price
the FY 2020-21 and the future
transactions with related parties movement over the period),
plans was made by the Managing
are appropriately identified in the Financial Highlights and Indicators,
Director. After Q&A session, the
information system and disclosed in Pattern of Shareholders, EPS, P/E
audited accounts, the directors’
the financial statements. Ratio and Breakup Value etc.
and the auditors’ reports were
duly approved and adopted by the
Transactions and balances with All the material information that
members.
the related parties are reviewed might affect the share price of
and approved by the Board on the the Company is communicated to
recommendations of the Audit the PSX and the SECP in a timely Thereafter, the audited accounts,
Committee. manner. the directors’ and the auditors’
reports were filed with the applicable rates and deposited in shareholders request. Personal
Registrar of Companies and the Government Treasury. phone calls are also made to some
circulated to the SECP and the of the shareholders to inform them
PSX. Agenda Item-3: To appoint about the AGM and invite them to
auditors for the year 2021-22 and attend in person or through proxy.
Agenda Item-2: To approve, as fix their remuneration. Dedicated parking and security
recommended by the Board of arrangements are made for the
Directors, the payment of final Decision and Implementation: shareholders on the day of the
dividend @ Rs. 75/- per share (750 M/s A.F. Ferguson & Co., Chartered AGM.
%) for the financial year ended Accountants, were appointed as
June 30, 2021. This was in addition auditors to hold office until the Compliance with the Best
to the interim dividends @ Rs. 66/- conclusion of the next Annual Practices of Code of Corporate
per share (660%) already paid. General Meeting of the Company Governance
for the year ending June 30, 2022, The Company ensures full
Decision and Implementation: at the fee and other terms and compliance with the Listed
The payment of the final conditions agreed by the Board of Companies (Code of Corporate
dividend as recommended by Directors. Governance) Regulations, 2019.
the Board was approved by the Every year, the Statement of
shareholders. It was also approved Facilitation to Minority Compliance prepared by the Board
that the dividend on the 5% bonus Shareholders to Attend AGMs of Directors is reviewed and verified
shares that were sub-judice Both the companies and the by the statutory auditors of the
before the Sindh High Court be shareholders have to play a role Company.
withheld by the Company till the to make AGMs effective and
final decision of the Court in the meaningful. MPCL follows the The Statement for the year 2021-
matter. legal requirements in letter and 22 (included in the Annual Report)
spirit to encourage participation details the manner in which
Accordingly, dividend was of the minority shareholders in the Company has applied the
electronically transferred in the the AGMs. Going beyond the legal requirements of the Regulations.
designated bank accounts of the requirements, the Company even The Statement also confirms that all
eligible shareholders on November delivers Annual Reports through the material principles enshrined in the
04, 2021. Tax was deducted at the Company’s dispatch riders at the Regulations were complied with.
Good Governance Practice

beyond the Requirements of
the Regulations
Going beyond the requirements of
the Regulations, the Company has
adopted/ implemented following
good governance practices in the
Company.
l Although not mandatory under
the Regulations, the Board
has constituted an Investment
Committee, which evaluates
the feasibilities of the new
projects to ensure growth and Whistle Blowing Policy shall only be accessible to the
diversification of the Company’s Chairman.
l The Board has approved
business.
a Whistleblower Policy to l On the recommendation
l Apart from the statutory encourage employees, who of the Audit Committee, a
positions, employment of all have concerns about suspected whistleblower may be suitably
executives reporting directly serious misconduct or any awarded according to the
to the Managing Director is breach or suspected breach significance of the information
approved by the Board on of law or regulation that may he/she had provided and impact
recommendations of the HR&R adversely impact the Company, of losses averted as a result.
Committee. This practice to come forward and express The award may include cash
ensures transparency in hiring, such concerns without fear of prizes and/or increase in salary
promotion and separation of punishment or unfair treatment. and/or promotion (in case of
senior management. The Policy applies to all regular/ employees).
contractual Management and
Non-Management employees l The Policy allows anonymous
Awareness Session on of the Company, vendors, whistles/complaints.
Insider Trading contractors, customers and During the year, no complaint was
Insider trading is a serious offence consultants etc. The Policy lodged under the Whistleblowing
under the Securities Act 2015 and also includes other personnel Policy.
carries hefty financial penalties and associated in any other manner
jail time. The Company arranges in- with the Company. Salients of the Investors' Grievances Policy
house sessions to create awareness policy are as under: The Board has approved an Investor
about insider trading and related Relations & Grievance Policy which
l Audit Committee of the
matters. Management employees contains the mechanism for handling
Board shall be responsible for
from all tiers participate in the shareholders complaints and queries.
implementation of the Whistle
sessions wherein they are apprised
Blowing Policy.
about the main concepts pertaining As envisaged in the Policy, the
to insider trading, laws governing l Chairman of the Audit committee Company has a designated email ID
insider trading, responsibilities of the shall directly receive, review as well as an online Complaint Form
Company with regard to handling and decide whether a detailed at its website for the Shareholders
material insider information and investigation is needed on to lodge a complaint or query with
maintenance of inside information all whistles/complaints. The the Management. Shareholders can
register, penalties for non- whistles/ complaints may be also lodge a complaint or query using
compliance, real life case studies, and launched through dedicated telephone, fax or conventional mail.
the contents of the inside information email address (whistle@mpcl. The Policy ensures that grievances
register of MPCL. Emails pertaining to com.pk) or through other forms notified by the shareholders are
the prohibition of the insider trading like post, courier etc. directly to handled and resolved efficiently at
are also circulated from time to time the Chairman Audit Committee. appropriate level within shortest
to reinforce compliance. The aforementioned email possible time span (within 5 working
days). The Company maintains record

of all such grievances along with
actions taken for resolution and
prepares summary of unresolved/
unsettled issues on monthly basis.
Annual Evaluation of the

Performance of the Board,
Board’s Committees and
Individual Directors along with
Description of Criteria used/
Board’s Performance Evaluation
by External Consultant
In line with good governance mechanism for conducting the Committee for review at the end
practices, MPCL has hired the aforementioned evaluation. The of each quarter. After review by
services of the Pakistan Institute evaluation of the Board and Board the Committee, the transactions
of Corporate Governance (PICG) Committees will cover 10 specific were considered and approved
to independently conduct the areas including: board composition, by the Board keeping in view the
performance assessment of the strategic planning, chairman, board recommendations made by the
Board, its Committees, and Individual procedures, CEO, board committees, Committee.
Directors for FY 2021-22. The control environment, board and CEO
deliverables of the assessment compensation, risk oversight and In compliance with the requirements
exercise are: independent directors. contained in the Fourth Schedule of
the Companies Act, 2017, detailed
a. Assessment Report of the Board The evaluation was in progress at disclosure regarding related party
and Board Committees the time of the printing of this report, transactions has been presented in
after which the complete report, Note 38 of the Financial Statements.
b. Evaluation Reports of the
Individual Board Members analysis and interpretation of the
results will be presented by PICG to Investors’ Relations Section
c. Analysis of the Results the HR&R Committee of the Board. and Complete Accessibility
d. Interpretation of the Results of Annual Report on MPCL
Related Party Transactions
Website
The evaluation is divided into two All transactions with related parties
In order to promote investor
arising in the normal course of
phases: relations and facilitate access to
business are carried out on an
the Company for grievance/other
• Phase-I (Evaluation of the Board unbiased, arm’s length basis at
query registration, an Investors’
and Board Committees) normal commercial terms and
Relations section (https://mpcl.com.
conditions.
pk/investor-relations/) is maintained
• Phase-II (Evaluation of the
on MPCL website. Further, annual
Individual Directors) Any transactions with related parties,
report is also completely accessible
where majority of directors of MPCL
on the website (https://mpcl.com.pk/
The evaluation is aimed at are interested, are referred to the
investor-relations/financial-reports/)
independent assessment of the shareholders in a general meeting for
strengths and capabilities of MPCL ratification / approval.
Managing Director’s/ CEO
Board, its Committees and Individual
Directors. It will identify the areas Pursuant to the requirements of the Interview
that may not be functioning as well Companies Act 2017 and the Listed CEO’s presentation regarding MPCL’s
as they should be, thus causing Companies (Code of Corporate performance, business overview,
barriers to effectiveness, and Governance) Regulations, 2019, the strategy and outlook is placed at
recommend ways of addressing them complete details of the transactions the following link: https://mpcl.com.
in accordance with the best practices. and balances with the related pk/investor-relations/mds-video-
PICG has developed a specialized parties were placed before the Audit interview/
Board Meetings held outside

Company's Ownership Structure and
Pakistan
No Board meeting was held outside
Relationship with Associated Companies
Pakistan during the year.
General Fauji
Public Foundation
Date of Authorization of Financial
21.61% 40%
Statements
In order to timely communicate
financial results to the stakeholders,
Annual Financial Statements of the MPCL
Company for FY 2021-22 were approved
by the Board in its 202nd meeting
Govt. of
held on August 04, 2022. Necessary Pakistan OGDCL
disclosures to the PSX and the SECP 18.39% 20%
were made on the same day after the
conclusion of the Board meeting.
Reports of the Shariah Advisory

Board
Associate Associate
The Company is not required to have
a Shariah Advisory Board. However,
the Company is included in PSX KMI
All Share Index and KMI 30 Index
which track the performance of sharia
1. Fauji Foundation
compliant companies listed on the PSX.
2. Fauji Fertilizer Company Ltd
PIOL 3. Fauji Cement Company Ltd
Redressal Mechanism for 4. Askari Bank Ltd
25% 5. Fauji Fertilizer Bin Qasim Ltd
Investor’s Complaints
A dedicated “Investor Contact and 6. Pakistan Oxygen Limited
7. Rafhan Maize Products CompanyLtd
Complaints” page is being maintained
8. OGDCL
on MPCL website under the Investor 9. PSO
Relations Section. Executives of 10. Fauji Fresh n Freeze Ltd
Corporate Affairs Department are 11. FFC Energy Ltd
available from 8 am to 4 pm during 12. Askari Cement Ltd
the working days to facilitate the 13. Fauji Akbar Portia Marine Terminal Ltd
14. Fauji Trans Terminal Ltd
shareholders and address their queries,
15. Fauji Oil Terminal and Distribution Co. Ltd
complaints and issues. Queries, 16. Fauji Infraavest Foods Ltd
requests and complaints can also be 17. Foundation Wind Energy-I & II Ltd
sent in hard copies to the Corporate 18. Foundation Power Company Daharki Ltd
Affairs Department. Whatever is 19. Fauji Kabir Wala Power Company Ltd
the nature of the issue faced by a 20. FFBL Power Company Ltd
21. Foundation Solar Energy (Pvt) Ltd
shareholder, it is promptly addressed
22. Daharki Power Holdings Ltd
directly by the Company or necessary 23. Fauji Foods Ltd
instructions are issued to the Share 24. Fauji Meat
Registrar to resolve and respond. 25. Fauji Electric Power Company
Normally any issue is resolved within 26. FFBL Foods Ltd
27. Pakistan Maroc Phosphore SA
2-3 working days.
28. Noon Pakistan Ltd
During FY-2021-22, nine (09) 29. National Resources (Pvt) Limited
complaints were received from various 30. Foundation University Islamabad
shareholders. All complaints were 31. Pakistan International Oil Limited
timely settled by the Shares Section of 32. Wyeth Pakistan Limited
the Company.
Financial Capital
Adequacy of Capital Structure Equities and Liabilities Assets
2021-22 2021-22
The Company's capital is principally
financed by equity. Total equity
on June 30, 2022 was Rs 130.86
billion, a 13 percent increase over
Rs 115.53 billion at the end of the
previous year due to retained profit.
The financial projections show that

the capital structure is adequate 61.47% l Unappropriated profit 32.65% l Property, plant and equipment
for the foreseeable future. The 12.58% l Trade and other payables 19.71% l Cash and bank balances
8.49% l Other reserves 17.48% l Trade debts
Company intends to cover all of its 9.58% l Development and production assets
8.40% l Deferred liabilities
financing needs over the next year 7.79% l Provision for income tax 7.85% l Exploration and evaluation assets
5.82% l Others
through available reserves and cash 1.27% l Others
4.21% l Short term loans and advances
generated internally. 2.70% l Short term investments
Financing Arrangements external sources thus ensuring lower Statement of Unreserved

The reliance on external financing borrowing cost. During the year, an Compliance of IFRS issued by
is secondary to the Company's amount of Rs 49,400 million was IASB as applicable in Pakistan
principal source of finance, which generated from operating activities Financial statements have been
is internally generated cash. Given of the Company which was primarily prepared in accordance with
the Company's excellent financial used to undertake exploration and the accounting and reporting
position and operational cash flows, development activities, capital standards as applicable in
management believes it will have no expenditures and dividend payments. Pakistan. The accounting
trouble obtaining debt financing in and reporting standards as
the future, if necessary. Strategy to Overcome Liquidity applicable in Pakistan comprise of
Problems International Financial Reporting
Repayment of Debts and To manage liquidity, the Company Standards (IFRS), issued by
Recovery of Losses constantly examines its cash inflows the International Accounting
The Company has a strong debt and outflows along with future Standards Board (IASB) as notified
raising and repayment capability. cash projections before making any under the Companies Act, 2017
Further, strong cash position decisions. This approach of regular and provisions of and directives
provides leverage to adequately monitoring allows the Company issued under the Companies
manage loss recovery, if any. to get visibility into future liquidity Act, 2017. Where the provisions
requirements and, if necessary, bridge of and directives issued under
There have been no defaults in the gaps by taking strategic and the Companies Act, 2017 differ
repayment of any debt during the operational decisions and arranging from IFRS, the provisions of
year. financing facilities. and directives issued under the
Companies Act, 2017 have been
Liquidity and Cash Flow
Management Strategy Responsibility followed.
towards the Financial Note 2.5 of the financial

Analysis of Liquidity and statements specifies the
Cash Flows
Statements standards, amendments and
Owning to strong financial health of It is a statutory responsibility to interpretations which are yet to
the Company, the Company does adopt sound accounting policies, be effective in Pakistan and have
not have or forecast any liquidity establish and maintain a system of not been early adopted by the
issues. Internal cash generation, internal controls and prepare and Company. The Company believes
principally from hydrocarbon present the financial statements that the impact of these standards,
sales and income from deposits in conformity with the approved amendments and interpretations
adequately meets the liquidity accounting standards as applicable in are not likely to have any
requirements of the Company. Pakistan and the requirements of the material impact on the financial
Minimum reliance is placed on Companies Act, 2017. statements.
Performance Indicators
2021-22 2020-21 2019-20 2018-19 2017-18 2016-17
PROFITABILITY RATIOS
Net profit to net sales % 34.75 43.06 42.09 40.92 37.75 32.35
EBITDA margin to net sales % 56.34 67.76 63.87 64.83 60.03 49.65
Operating leverage Times 0.58 7.81 0.50 1.46 1.63 2.43
Return on equity / shareholders' funds % 26.84 30.14 38.68 46.87 46.78 42.99
Return on capital employed % 26.76 30.14 38.68 46.87 44.06 39.15
Equity / Shareholders' funds Rs in billion 130.86 115.53 93.15 63.61 40.19 25.54
LIQUIDITY RATIOS
Current ratio Times 2.26 3.61 3.71 2.98 2.77 1.92
Quick / acid test ratio Times 2.13 3.36 3.15 2.60 2.56 1.75
Cash to current liabilities Times 1.09 2.05 2.22 1.45 1.51 0.72
Cash flow from operations to net sales Times 0.52 0.41 0.44 0.34 0.49 0.25
Cash flow from operations to capital expenditures Times 1.25 1.14 2.50 2.05 3.21 1.66
Cash flow coverage ratio Times 68.22 - - - - 1.71
ACTIVITY / TURNOVER RATIOS
Debtor turnover Times 3.61 3.22 3.65 4.37 5.44 5.78
No. of days in receivables Days 101 113 100 83 67 63
Total assets turnover Times 0.57 0.53 0.66 0.79 0.77 0.68
Fixed assets turnover Times 1.24 1.44 1.91 1.88 1.51 1.13
INVESTMENT / MARKET RATIOS
Earnings per share (EPS) - basic and diluted Rupees 247.84 235.71 227.23 182.36 115.25 68.49
Price earnings Times 7.02 6.47 5.44 5.53 13.07 23.01
Price to book ratio Times 1.77 1.76 1.77 1.92 4.13 6.80
Dividend yield % 7.13* 9.25 0.49 0.59 0.40 0.33
Dividend payout % 50.03* 59.82 2.68 3.29 5.21 7.59
Dividend cover Times 2.00* 1.67 37.25 30.39 19.21 13.17
Dividend per share Rupees 124.00* 141.00 6.10 6.00 6.00 5.20
Stock dividend per share % - - 10 10 - -
Market value per share
Year end Rupees 1,739.74 1,524.39 1,236.65 1,009.33 1,506.18 1,575.64
highest during the year Rupees 1,800.13 1,692.16 1,454.50 1,589.95 1,809.41 1,750.00
lowest during the year Rupees 1,480.55 1,222.65 829.95 936.70 1,398.38 905.10
Breakup value per share / Net assets per share Rupees 980.93 866.05 698.26 524.48 364.55 231.63
Market capitalization - year end price Rupees in billion 232.09 203.36 164.97 122.41 166.06 173.71
CAPITAL STRUCTURE RATIOS
Debt to equity (as per book value) % 0.55 : 99.45 00:100 00:100 00:100 00:100 14.04:85.96
Debt to equity (as per market value) % 0.31 : 99.69 00:100 00:100 00:100 00:100 2.35:97.65
Financial leverage Times 0.01 - - - - 0.20
Interest cover Times 1,193.96 - - - 764.79 57.42
Weighted average cost of debt % 9.41 - - - 6.09 6.00
EMPLOYEE PRODUCTIVITY AND OTHER RATIOS
Production per employee MBOE 26.10 28.25 27.39 27.75 29.59 29.09
Net sales per employee Rs in million 67.28 57.49 59.04 49.06 35.41 25.42
Employee turnover ratio % 6.01 7.95 5.66 5.94 6.61 3.87
Maintenance & repairs expense as
%age of operating & administrative expenses % 7.00 7.16 5.58 5.35 7.73 9.69
Debt under interest arrangements to
market capitalization % 0.32 - - - - 2.95
Bank deposits & investments placed under
interest arrangements to market capitalization % 17.76 21.58 26.09 12.75 6.70 3.48
Revenue from bank deposits & investments placed
under interest arrangements to total revenue % 1.96 4.04 3.91 1.76 1.32 0.66
Net liquid assets per share to market value per share % 18.46 27.54 32.37 26.52 9.77 4.15
Note: Breakup value with revaluation reserves does not apply as MPCL has no revaluation reserves. Furthermore, carrying value of investment in related party
- associate approximate its fair value.
Customer satisfaction index is not applicable as oil and gas industry in Pakistan is highly regulated.
Previous years figures have been restated, wherever necessary for the purpose of comparison
* This includes final dividend of 620% for the year ended June 30, 2022 proposed by the Board of Directors for approval of members in the Annual General
Meeting to be held on September 28, 2022.
Quarterly Analysis
Total for
the year
ended June
30, 2022
QUARTER 1 QUARTER 2 QUARTER 3 QUARTER 4

Net Sales 20,725.82 21,691.86 25,199.40 27,517.40 95,134.48
(Rupees in million)
Profit
(Rupees in million) 9,098.80 7,471.14 10,889.35 5,603.72 33,063.01
without super tax: 10,811.64 without super tax: 38,270.93
Earnings Per Share

(Rupees) 68.21 56.00 81.63 42.00 247.84
without super tax: 81.04 without super tax: 286.88
Energy Produced
(MMBOE) 9.27 9.06 9.23 9.35 36.91
Gas Produced
(MMSCF) 70,406 68,789 70,985 72,993 283,173
Crude Oil Produced
(Barrels)
153,856 108,740 90,223 105,690 458,509
Analysis:
Net sales increased on quarterly basis due to increase in applicable oil and gas prices in the second half of the year. Q2
profit was decreased mainly due to 3D seismic cost incurred by an associated company, which has been charged to profit
in line with Company's accounting policy. Q4 profit would have been higher if there was no imposition of the new fiscal
regime that was enacted towards the end of the year. Lower production in Q2 is due to lower off-takes by customers owing
to their less requirements.
Net Sales Profit Energy Produced
Without
super tax
21.79% l First Quarter 23.77% 27.52% l First Quarter 25.13% l First Quarter
22.80% l Second Quarter 19.52% 22.60% l Second Quarter 24.55% l Second Quarter
26.49% l Third Quarter 28.45% 32.93% l Third Quarter 25.01% l Third Quarter
28.92% l Fourth Quarter 28.26% 16.95% l Fourth Quarter 25.31% l Fourth Quarter
Summary of the
Statement of Cash Flows
2021-22 2020-21 2019-20 2018-19 2017-18 2016-17

(Rupees in million)
Cash flows from operating activities 49,400.04 29,973.02 31,465.74 20,226.68 20,105.93 7,116.88
Cash flows from investing activities (41,012.15) (22,864.80) (7,818.32) (8,051.54) (5,543.56) (4,081.59)
Cash flows from financing activities (17,145.99) (9,001.47) (796.14) (754.96) (5,903.21) 3,262.94
(Decrease) / Increase in cash and
cash equivalents (8,758.10) (1,893.25) 22,851.28 11,420.18 8,659.16 6,298.23
Cash and cash equivalents at
beginning of year 48,605.38 50,334.40 27,335.82 15,706.26 6,927.79 626.15
Effect of exchange rate changes 1,643.84 164.23 147.31 209.37 119.31 3.41
Cash and cash equivalents at
end of year 41,491.13 48,605.38 50,334.40 27,335.82 15,706.26 6,927.79
Cash Flows from Cash Flows from Cash Flows from Cash and
Operating Activities Investing Activities Financing Activities Cash Equivalents
(Rupees in billion) (Rupees in billion) (Rupees in billion) (Rupees in billion)
50 50 20 60
40 50
15
40
30 40
10
20 30
30
5
10 20
20 0 0 10
2018
2019
2020
2021
2022
2018
2019
2020
2021
2022
2018
2019
2020
2021
2022
2018
2019
2020
2021
2022
Net cash inflows from Investing activities mainly Cash outflows from financing Cash and cash equivalents
operating activities comprise of exploration activities increased in recent increased more than 2.5
represent cash received and development activities, years mainly due to higher times from Rs 15.71 billion in
from customers netted off capital expenditures and dividend payout. 2017-18 to Rs 41.49 billion in
with payments to suppliers, investments. Cash outflows 2021-22.
employees and Government have increased over the
for levies and taxes. The years due to accelerated
increase over the years is in exploration and development
line with the activities of the activities of the Company.
Company.
Return on Equity
DuPont Analysis
Equity
Multiplier
1.36
Times
2021-22
Total Assets
Profit Margin Turnover
34.75% 0.57
Times
Return on Equity
26.84%
Equity
Multiplier
1.33
Times
2020-21
Total Assets
Profit Margin Turnover
43.06% 0.53
Times
Return on Equity
30.14%
Analysis
Major reason for decline in return on equity from 30.14% to 26.84% is lower profit margin due to
imposition of the new fiscal regime, enacted towards the end of the year.
Horizontal Analysis
Statement of Financial Position
2022 22 vs 21 2021 21 vs 20
%age %age
EQUITY AND LIABILITIES

Share capital and reserves
Share capital 1,334,025 - 1,334,025 -
Undistributed percentage return reserve - - - (100.00)
Other reserves 15,711,988 3.44 15,190,001 7.05
Unappropriated profit 113,812,754 14.95 99,009,539 28.34
130,858,767 13.26 115,533,565 24.03
Non current liabilities
Long term financing 724,126 100.00 - -
Deferred liabilities 15,544,293 39.14 11,171,723 8.02
16,268,419 45.62 11,171,723 8.02
Current liabilities
Trade and other payables 23,299,450 35.02 17,256,803 21.43
Unclaimed dividend 265,992 123.76 118,875 170.01
Unpaid dividend - - - -
Current maturity of long term financing 27,981 100.00 - -
Interest accrued on long term financing - - - -
Provision for income tax 14,419,416 128.69 6,305,167 (24.92)
38,012,839 60.52 23,680,845 4.54
185,140,025 23.11 150,386,133 19.22
ASSETS
Non current assets
Property, plant and equipment 60,441,427 60.44 37,672,536 69.64
Development and production assets 17,733,482 8.94 16,278,235 38.35
Exploration and evaluation assets 14,538,766 96.84 7,386,197 24.86
Long term investments 3,185,145 174.34 1,161,018 100.00
Long term loans and advances 43,969 29.12 34,053 2.68
Long term deposits and prepayments 124,756 (31.56) 182,274 (48.51)
Deferred income tax asset 3,057,644 38.40 2,209,320 16.98
99,125,189 52.68 64,923,633 53.97
Current assets
Stores and spares 3,424,159 19.44 2,866,855 (4.44)
Trade debts 32,359,298 15.38 28,046,706 20.02
Short term loans and advances 7,792,601 42.44 5,470,861 (22.46)
Short term prepayments 135,672 (6.38) 144,920 7.42
Other receivables 676,270 261.04 187,311 282.83
Current portion of long term investments 41,068 3.00 39,831 100.00
Short term investments 4,995,065 (87.75) 40,782,256 21.25
Interest accrued 29,853 (70.34) 100,635 175.95
Income tax paid in advance - - - -
Cash and bank balances 36,496,060 366.52 7,823,125 (53.16)
85,950,046 0.57 85,462,500 1.77
Assets classified as held for sale 64,790 100.00 - -
185,140,025 23.11 150,386,133 19.22
(Rupees in thousand)
2020 20 vs 19 2019 19 vs 18 2018 18 vs 17 2017 17 vs 16
%age %age %age %age
1,334,025 10.00 1,212,750 10.00 1,102,500 - 1,102,500 -

477,899 (20.67) 602,415 (1.74) 613,109 23.50 496,436 16.30
14,190,001 7.58 13,190,001 8.20 12,190,001 8.94 11,190,001 4.68
77,147,181 58.73 48,601,563 84.89 26,286,128 106.19 12,748,733 168.59
93,149,106 46.45 63,606,729 58.26 40,191,738 57.38 25,537,670 50.52
- - - - - - 4,172,727 317.27
10,342,139 2.83 10,057,962 26.48 7,952,336 6.26 7,483,812 13.79
10,342,139 2.83 10,057,962 26.48 7,952,336 (31.78) 11,656,539 53.85
14,211,612 10.95 12,809,483 54.86 8,271,834 (1.52) 8,399,633 (27.40)

44,026 35.20 32,563 68.10 19,371 12.14 17,274 70.36
- (100.00) 7,544 (34.48) 11,514 31.84 8,733 (24.11)
- - - - - (100.00) 955,037 529.25
- - - - - (100.00) 254,552 29.77
8,397,850 40.31 5,985,202 186.72 2,087,503 100.00 - -
22,653,488 20.27 18,834,792 81.27 10,390,222 7.84 9,635,229 (19.30)
126,144,733 36.37 92,499,483 58.03 58,534,296 24.99 46,829,438 28.36
22,207,552 37.29 16,176,231 21.93 13,266,282 4.55 12,688,670 15.11

11,766,348 (7.76) 12,755,574 7.31 11,886,872 60.42 7,409,878 146.83
5,915,531 (9.74) 6,553,548 143.67 2,689,549 (54.96) 5,972,108 (40.78)
- - - - - - - -
33,165 (16.58) 39,755 12.27 35,411 9.86 32,233 19.08
353,999 53.25 230,999 267.31 62,890 141.87 26,002 72.15
1,888,594 190.04 651,147 (64.21) 1,819,166 (15.87) 2,162,308 (19.34)
42,165,189 15.82 36,407,254 22.34 29,760,170 5.19 28,291,199 5.44
2,999,993 27.69 2,349,391 250.11 671,051 (33.89) 1,015,000 (53.17)

23,369,070 9.32 21,377,155 121.21 9,663,590 26.15 7,660,556 101.08
7,055,770 48.47 4,752,460 87.67 2,532,344 54.41 1,640,065 14.09
134,910 45.19 92,919 39.28 66,714 1.55 65,697 (18.08)
48,928 (37.86) 78,739 154.14 30,982 (22.11) 39,779 86.47
- - - - - - - -
33,634,126 62.48 20,700,000 145.34 8,437,354 134.07 3,604,596 100.00
36,469 (65.51) 105,747 2.48 103,183 119.39 47,031 1,087.35
- - - - - (100.00) 1,142,319 (24.02)
16,700,278 151.67 6,635,818 (8.71) 7,268,908 118.73 3,323,196 430.73
83,979,544 49.72 56,092,229 94.94 28,774,126 55.21 18,538,239 92.12
- - - - - - - -
126,144,733 36.37 92,499,483 58.03 58,534,296 24.99 46,829,438 28.36
Horizontal Analysis
Statement of Profit or Loss
2022 22 vs 21 2021 21 vs 20
%age %age
Net sales 95,134,477 30.29 73,018,271 1.38
Royalty (11,999,913) 28.82 (9,315,126) 5.79

Operating and administrative expenses (17,402,533) 15.71 (15,039,680) 12.96
Exploration and prospecting expenditure (10,931,573) 140.59 (4,543,689) (55.70)
Finance cost (979,809) (25.23) (1,310,476) 130.74
Other charges (3,622,588) 17.52 (3,082,462) 14.24
(44,936,416) 34.98 (33,291,433) (6.60)
50,198,061 26.36 39,726,838 9.19
Other income / (expenses) 48,235 (84.54) 311,971 (8.24)

Finance income 4,483,085 13.77 3,940,536 (13.51)
Share of loss in associate (2,613,070) 5,346.00 (47,982) 100.00
Profit before taxation 52,116,311 18.63 43,931,363 6.42
Provision for income tax (19,053,300) 52.59 (12,486,454) 13.86
Profit for the year 33,063,011 5.15 31,444,909 3.73
2020 20 vs 19 2019 19 vs 18 2018 18 vs 17 2017 17 vs 16
%age %age %age %age
72,026,368 21.14 59,457,121 46.00 40,722,698 44.19 28,242,922 29.79
(8,805,560) 16.25 (7,574,515) 46.20 (5,180,869) 44.57 (3,583,522) 30.31

(13,313,631) 13.58 (11,722,088) 16.85 (10,031,741) 33.45 (7,517,446) 29.34
(10,257,639) 138.11 (4,308,006) 29.96 (3,314,839) (14.58) (3,880,797) (39.95)
(567,952) (26.02) (767,752) 20.01 (639,728) (19.84) (798,086) 39.03
(2,698,227) 10.77 (2,435,811) 68.25 (1,447,747) 99.33 (726,290) 44.70
(35,643,009) 32.96 (26,808,172) 30.04 (20,614,924) 24.89 (16,506,141) 2.52
36,383,359 11.44 32,648,949 62.37 20,107,774 71.32 11,736,781 107.33
340,001 4.27 326,087 (156.04) (581,846) (29.07) (820,328) (246.54)

4,556,085 162.86 1,733,298 126.39 765,616 228.58 233,006 (31.62)
- - - - - - - -
41,279,445 18.93 34,708,334 71.05 20,291,544 82.00 11,149,459 69.92
(10,966,572) 5.64 (10,381,246) 111.12 (4,917,204) 144.24 (2,013,265) 294.76
30,312,873 24.61 24,327,088 58.23 15,374,340 68.28 9,136,194 50.98
Vertical Analysis
2022 % 2021 %
age age

Share capital and reserves
Share capital 1,334,025 0.72 1,334,025 0.89
Undistributed percentage return reserve - - - -
Other reserves 15,711,988 8.49 15,190,001 10.10
Unappropriated profit 113,812,754 61.47 99,009,539 65.84
130,858,767 70.68 115,533,565 76.82
Non Current Liabilities
Long term financing - secured 724,126 0.39 - -
Deferred liabilities 15,544,293 8.40 11,171,723 7.43
16,268,419 8.79 11,171,723 7.43
Current Liabilities
Trade and other payables 23,299,450 12.58 17,256,803 11.47
Unclaimed dividend 265,992 0.14 118,875 0.08
Unpaid dividend - - - -
Current maturity of long term financing 27,981 0.02 - -
Interest accrued on long term financing - - - -
Provision for income tax 14,419,416 7.79 6,305,167 4.19
38,012,839 20.53 23,680,845 15.75
185,140,025 100.00 150,386,133 100.00
ASSETS
Property, plant and equipment 60,441,427 32.65 37,672,536 25.05
Development and production assets 17,733,482 9.58 16,278,235 10.82
Exploration and evaluation assets 14,538,766 7.85 7,386,197 4.91
Long term investments 3,185,145 1.72 1,161,018 0.77
Long term loans and advances 43,969 0.02 34,053 0.02
Long term deposits and prepayments 124,756 0.07 182,274 0.12
Deferred income tax asset 3,057,644 1.65 2,209,320 1.47
99,125,189 53.54 64,923,633 43.17
Current assets
Stores and spares 3,424,159 1.85 2,866,855 1.91
Trade debts 32,359,298 17.48 28,046,706 18.65
Short term loans and advances 7,792,601 4.21 5,470,861 3.64
Short term prepayments 135,672 0.07 144,920 0.10
Other receivables 676,270 0.37 187,311 0.12
Current portion of long term investments 41,068 0.02 39,831 0.02
Short term investments 4,995,065 2.70 40,782,256 27.12
Interest accrued 29,853 0.02 100,635 0.07
Income tax paid in advance - - - -
Cash and bank balances 36,496,060 19.71 7,823,125 5.20
85,950,046 46.43 85,462,500 56.83
Assets classified as held for sale 64,790 0.03 - -
185,140,025 100.00 150,386,133 100.00
2020 % 2019 % 2018 % 2017 %
age age age age
1,334,025 1.06 1,212,750 1.31 1,102,500 1.88 1,102,500 2.35

477,899 0.38 602,415 0.65 613,109 1.05 496,436 1.06
14,190,001 11.25 13,190,001 14.26 12,190,001 20.83 11,190,001 23.90
77,147,181 61.16 48,601,563 52.54 26,286,128 44.91 12,748,733 27.22
93,149,106 73.84 63,606,729 68.76 40,191,738 68.66 25,537,670 54.53
- - - - - - 4,172,727 8.91
10,342,139 8.20 10,057,962 10.87 7,952,336 13.59 7,483,812 15.98
10,342,139 8.20 10,057,962 10.87 7,952,336 13.59 11,656,539 24.89
14,211,612 11.27 12,809,483 13.85 8,271,834 14.13 8,399,633 17.94

44,026 0.03 32,563 0.04 19,371 0.03 17,274 0.04
- - 7,544 0.02 11,514 0.02 8,733 0.02
- - - - - - 955,037 2.04
- - - - - - 254,552 0.54
8,397,850 6.66 5,985,202 6.46 2,087,503 3.57 - -
22,653,488 17.96 18,834,792 20.36 10,390,222 17.75 9,635,229 20.58
126,144,733 100.00 92,499,483 100.00 58,534,296 100.00 46,829,438 100.00
22,207,552 17.60 16,176,231 17.49 13,266,282 22.66 12,688,670 27.10

11,766,348 9.33 12,755,574 13.79 11,886,872 20.31 7,409,878 15.82
5,915,531 4.69 6,553,548 7.08 2,689,549 4.59 5,972,108 12.75
- - - - - - - -
33,165 0.03 39,755 0.04 35,411 0.06 32,233 0.07
353,999 0.28 230,999 0.25 62,890 0.11 26,002 0.06
1,888,594 1.50 651,147 0.70 1,819,166 3.11 2,162,308 4.62
42,165,189 33.43 36,407,254 39.36 29,760,170 50.84 28,291,199 60.41
2,999,993 2.38 2,349,391 2.54 671,051 1.15 1,015,000 2.17

23,369,070 18.53 21,377,155 23.11 9,663,590 16.51 7,660,556 16.36
7,055,770 5.59 4,752,460 5.14 2,532,344 4.33 1,640,065 3.50
134,910 0.11 92,919 0.10 66,714 0.11 65,697 0.14
48,928 0.04 78,739 0.09 30,982 0.05 39,779 0.08
- - - - - - - -
33,634,126 26.66 20,700,000 22.38 8,437,354 14.41 3,604,596 7.70
36,469 0.03 105,747 0.11 103,183 0.18 47,031 0.10
- - - - - - 1,142,319 2.44
16,700,278 13.24 6,635,818 7.17 7,268,908 12.42 3,323,196 7.10
83,979,544 66.57 56,092,229 60.64 28,774,126 49.16 18,538,239 39.59
- - - - - - - -
126,144,733 100.00 92,499,483 100.00 58,534,296 100.00 46,829,438 100.00
Vertical Analysis
2022 % 2021 %
age age
Net sales 95,134,477 100.00 73,018,271 100.00

Royalty (11,999,913) (12.61) (9,315,126) (12.76)
Operating and administrative expenses (17,402,533) (18.29) (15,039,680) (20.60)
Exploration and prospecting expenditure (10,931,573) (11.49) (4,543,689) (6.22)
Finance cost (979,809) (1.03) (1,310,476) (1.79)
Other charges (3,622,588) (3.81) (3,082,462) (4.22)
(44,936,416) (47.23) (33,291,433) (45.59)
50,198,061 52.77 39,726,838 54.41
Other income / (expenses) 48,235 0.05 311,971 0.43

Finance income 4,483,085 4.71 3,940,536 5.40
Share of loss in associate (2,613,070) (2.75) (47,982) (0.07)
Profit before taxation 52,116,311 54.78 43,931,363 60.16
Provision for income tax (19,053,300) (20.03) (12,486,454) (17.10)
Profit for the year 33,063,011 34.75 31,444,909 43.06
2020 % 2019 % 2018 % 2017 %
age age age age
72,026,368 100.00 59,457,121 100.00 40,722,698 100.00 28,242,922 100.00

(8,805,560) (12.23) (7,574,515) (12.74) (5,180,869) (12.72) (3,583,522) (12.69)
(13,313,631) (18.48) (11,722,088) (19.72) (10,031,741) (24.63) (7,517,446) (26.62)
(10,257,639) (14.24) (4,308,006) (7.25) (3,314,839) (8.14) (3,880,797) (13.74)
(567,952) (0.79) (767,752) (1.29) (639,728) (1.57) (798,086) (2.83)
(2,698,227) (3.75) (2,435,811) (4.10) (1,447,747) (3.56) (726,290) (2.57)
(35,643,009) (49.49) (26,808,172) (45.09) (20,614,924) (50.62) (16,506,141) (58.54)
36,383,359 50.15 32,648,949 54.91 20,107,774 49.38 11,736,781 41.56
340,001 0.47 326,087 0.55 (581,846) (1.43) (820,328) (2.90)

4,556,085 6.33 1,733,298 2.92 765,616 1.88 233,006 0.83
- - - - - - - -
41,279,445 57.31 34,708,334 58.38 20,291,544 49.83 11,149,459 39.48
(10,966,572) (15.23) (10,381,246) (17.46) (4,917,204) (12.07) (2,013,265) (7.13)
30,312,873 42.09 24,327,088 40.92 15,374,340 37.75 9,136,194 32.35
Six Years' Analysis

Horizontal Analysis, Vertical Analysis and Performance Indicators
Horizontal Analysis
Share Capital and Non Current Liabilities Current Liabilities
38.01
Reserves (Rupees in billion) (Rupees in billion)
130.86
(Rupees in billion)
16.27
115.53
93.15
23.68
11.66
22.65
11.17
10.34
10.06
18.83
63.61
7.95
40.19
10.39
9.64
2017 25.54
2018
2019
2020
2021
2022
2017
2018
2019
2020
2021
2022
2017
2018
2019
2020
2021
2022
Share Capital and Reserves Non Current Liabilities Current Liabilities
Over the years, unappropriated Deferred liabilities registered an Current liabilities increased by 60%
profit has consistently increased increase of 108% from 2016-17 in 2021-22 in comparison to 2020-
primarily on account of profit predominantly due to increase in 21, principally due to increase in
retention. Resultantly, shareholders’ provision for decommissioning provision of income tax and trade
equity rose to Rs 130.86 billion at cost over the years. During the and other payables.
the close of 2021-22 registering an year, the Company obtained long
increase of 412% in comparison to term financing under 'Temporary Current Assets
2016-17. Economic Relief Facility' (TERF) (Rupees in billion)
85.95
85.46
announced by the State Bank of 83.98
Pakistan (SBP).
56.09
Non Current Assets

99.13
28.77
(Rupees in billion)
2017 18.54
64.92
2018
2019
2020
2021
2022
42.17
36.41
Current Assets
29.76
28.29
Current assets mainly comprise of

‘trade debts’, ‘short term investments’
and ‘cash & bank balances’. Trade
2017
2018
2019
2020
2021
2022
debts increased from Rs 7.66 billion

in 2016-17 to Rs 32.36 billion at the
Non Current Assets close of 2021-22 mainly on account of
Non-current assets of the Company circular debt issue prevailing in Oil &
primarily include ‘property, plant Gas Sector in Pakistan.
& equipment’, ‘development and
production assets’ and ‘exploration In 2021-22, the Company’s ‘short
and evaluation assets’, and have term investments’ and ‘cash and bank
increased from Rs 28.29 billion in balances’ have accumulated to Rs
2016-17 to Rs 99.13 billion at the 41.49 billion registering an increase
close of 2021-22 primarily reflecting of 6 times compared to 2016-17, due
the enhancement of asset base of to retention of cash in business to
the Company. pursue its strategies and objectives.

Net Sales Exploration and Net Profit
95.13
(Rupees in billion) Prospecting Expenditure (Rupees in billion)
33.06
(Rupees in billion)
31.44
30.31
10.93
10.26
73.02
72.03
24.33
59.46
40.72
15.37
4.54
4.31
28.24
3.88
3.31
9.14
2017
2018
2019
2020
2021
2022
2017
2018
2019
2020
2021
2022
2017
2018
2019
2020
2021
2022
Net sales increased by more than 3 Exploration and prospecting end of the year. In the like-for-like
times from Rs 28.24 billion in 2016- expenses have increased comparison with the last year, the
17 to Rs 95.13 billion in 2021-22 significantly in the recent years profit was higher by 22%, however,
primarily due to enhancement of reflecting Company's aggressive due to the imposition of the new
production and better selling prices exploration efforts in terms of fiscal regime, the actual increase is
prevailed over the years. Further, seismic acquisition and drilling of 5%, which is still the highest ever
finance income has increased by exploratory wells. for the Company.
more than 19 times in comparison
to 2016-17 due to higher average The Company has reported the
bank/investment balances, interest highest ever profit despite the
rates and exchange gain on adverse change in the fiscal regime
account of rupee devaluation. that was enacted towards the
Six Years' Analysis

Vertical Analysis
Composition of Composition of Assets
Equity and Liabilities (Percentage)
(Percentage)
2017
2018
2019
2020
2021
2022
2017
2018
2019
2020
2021
2022
l Current Liabilities l Non Current Liabilities l Share Capital and Reserves l Non Current Assets l Current Assets
Share Capital and Reserves to 30% in 2021-22 primarily on Non Current Assets
Unappropriated profit as a account of increase in 'trade and ‘Property, plant and equipment’,
percentage of equity has increased other payables' and 'provision for ‘development and production
from five years’ average of 72% to income tax'. assets’ and ‘exploration and
87% at the close of 2021-22 owing to evaluation assets’ cumulatively are
profit retention in the business. Current Liabilities 94% as a percentage of non-current
‘Trade and other payables’ assets and remained in line with
Non Current Liabilities and ‘Provision for income tax’ the prior years as the Company
Non current liabilities as a cumulatively as a percentage of continued to invest in oil and gas
percentage of total liabilities current liabilities remain in line with assets.
decreased from 55% in 2016-17 prior years.
Current Assets
Trade debts as a percentage of
current assets increased in 2021-
Statement of Profit or Loss 22 vis-à-vis 2020-21 due to circular
debt issue prevailing in Oil & Gas
Composition of
Sector. ‘Short term investments’
Profit or Loss
(Percentage) and ‘cash and bank balances’
cumulatively constitute 48% of
current assets at the close of 2021-
22 and remains almost in line with
five years’ average of 51%.
2017
2018
2019
2020
2021
2022
l Royalty, Other Charges & Provision for Income Tax l Operating and Administrative Expenses
l Other Expenditure Net of Other Income and Finance Income l Profit
Net profit as a percentage of net sales is 35% in 2021-22,

which is lower than five years’ average of 39% primarily due
to the imposition of the new fiscal regime that was enacted
towards the end of the year.
Methods and Assumptions Used in Compiling the Indicators
A performance indicator is a performance indicators with peers The performance indicators
measurable value that shows in order to take decisions. presented by the Company are
how a company is performing in chosen with consideration for the
terms of profitability, operational Because these indicators are based Company's dynamics, operations
efficiency, liquidity and solvency. on historical data, trend analysis and financial structure, among
It is a tool for management and should be used in conjunction with other things.
other stakeholders to review the other information rather than as a
Company's performance over sole tool in making future strategic
time, as well as to compare its decisions.
Analysis of Performance Indicators

Profitability Ratios Liquidity Ratios
(Percentage) (Times)
80 4.0
70 3.5
60 3.0
50 2.5
40 2.0
30 1.5
20 1.0
10 0.5
0 0.0
2017 2018 2019 2020 2021 2022 2017 2018 2019 2020 2021 2022
l Net Profit to Net Sales l EBITDA Margin to Net Sales l Current Ratio l Quick / Acid Test Ratio
l Return on Equity / Shareholders’ Funds l Return on Capital employed l Cash to Current Liabilities l Cash Flow from Operations to Net Sales
Profitability Ratios Liquidity Ratios

Net profit to net sales is lower than five years’ average Cash and cash equivalents decreased compared
primarily due to the imposition of the new fiscal regime to last year due to investments in exploration and
that was enacted towards the end of the year. development assets, capital expenditures, dividend
Return on equity and return on capital employed fell payments and investment in associate, resulting in
compared to prior years due to major projects under decrease in current ratio, quick ratio and cash to
progress at year end that will yield returns in future current liabilities.
years.
Six Years' Analysis

Debtor, Total Assets and Fixed Assets Turnover
(Times) Number of Days
6 in Receivables
113
(Days)
101
100
5
83
4
67
3
63
2
1
0
2017
2018
2019
2020
2021
2022
2017 2018 2019 2020 2021 2022
l Debtor Turnover l Total Assets Turnover l Fixed Assets Turnover
Activity / Turnover Ratios resolution of the circular debt issue, which would
Debtor turnover and days in receivables registered eventually further improve debtor turnover and days
improvement from 2020-21 evidencing management’s in receivables. Further, fixed assets turnover has
efforts to recover outstanding receivables. The decreased due to major capital projects under progress
management is constantly in contact with concerned at the end of the year that will give return in future
consumers and government officials to ensure quick years.
Earnings Per Share

Investment / Market Ratios
Explanation of
Earnings per share stood at Rs
Negative Changes in
247.84
(Rupees)
235.71
247.84 for 2021-22 registering

227.23
an increase of 5% compared to Performance over the

182.36
last year on account of higher Period

profitability which combined with
115.25
increase in the market price of the All negative changes in

Company’s shares at the end of performance over the past six
68.49
the year, led to a rise in the price years; including the horizontal and
to earnings ratio of 7.02 times. vertical analysis of the statement
of financial position, statement
2017
2018
2019
2020
2021
2022
The breakup value per share of

the Company was recorded at Rs of profit or loss, statement of
980.93 for 2021-22 and is higher cash flows and ratios have been
than the five years’ historic average explained in this section.
Market Value per
Share at Year End of Rs 537.
(Rupees)
Capital Structure Ratios
1,739.74
During the year, the Company

1,575.64
1,524.39
1,506.18
obtained long term financing of Rs 1

1,236.65
billion under 'Temporary Economic

1,009.33
Relief Facility' (TERF) announced by

the State Bank of Pakistan (SBP).
Last five years’ average of equity
in overall capital structure is 97%,
2017
2018
2019
2020
2021
2022
which depicts that Company is not

reliant on external financing.
Statement of Value Added
Year 2021-22 Year 2020-21
(Rs. in million) % age (Rs. in million) % age
Revenues including Government levies and taxes 137,223.91 110.95 111,183.76 109.36
Less: Expenses netted off with other and finance income (13,539.04) (10.95) (9,512.30) (9.36)
Total value added 123,684.88 100.00 101,671.46 100.00
DISTRIBUTED AS FOLLOWS:
Employees as remuneration and benefits 8,270.10 6.69 6,631.65 6.52
Government as levies
Direct 20,777.55 16.80 13,551.43 13.33
Indirect 56,843.42 55.91 49,516.30 48.70
77,620.98 62.76 63,067.73 62.03
Shareholder as dividends 16,541.91 * 13.37 18,809.75 18.50

Social welfare and community development 4,148.80 3.35 516.25 0.51
Providers of long term finance as financial charges 43.65 0.04 - -
Retained within the business 17,059.44 13.79 12,646.08 12.44
123,684.88 100.00 101,671.46 100.00
Notes:
Previous years figures have been restated, wherever necessary for the purpose of comparison
* This includes final dividend of 620% for the year ended June 30, 2022 proposed by the Board of Directors for approval of
members in the Annual General Meeting to be held on September 28, 2022.
DISTRIBUTION DISTRIBUTION
2021-22 2020-21
62.76% l Government as levies 62.03% l Government as levies

13.79% l Retained within the business 12.44% l Retained within the business
13.37% l Shareholder as dividends 18.50% l Shareholder as dividends
6.69% l Employees as remuneration and benefits 6.52% l Employees as remuneration and benefits
3.35% l Social welfare and community development 0.51% l Social welfare and community development
0.04% l Providers of long term finance as financial charges
Free Cash Flows Economic Value Added
Rs 10,032 million Rs 12,664 million

Ten Years at a Glance
2021-22 2020-21 2019-20 2018-19 2017-18 2016-17 2015-16 2014-15 2013-14 2012-13
FINANCIAL
Net sales (Rs in million) 95,134.48 73,018.27 72,026.37 59,457.12 40,722.70 28,242.92 21,761.18 19,351.97 14,894.23 11,798.01
Profit before taxation (Rs in million) 52,116.31 43,931.36 41,279.45 34,708.33 20,291.54 11,149.46 6,561.45 6,551.87 4,377.64 3,488.49
Profit for the year (Rs in million) 33,063.01 31,444.91 30,312.87 24,327.09 15,374.34 9,136.19 6,051.46 5,650.31 3,943.30 2,421.08
Earnings per share (Rs) 247.84 235.71 227.23 182.36 115.25 68.49 45.36 42.36 29.56 18.15
Dividend per share (Rs) 124.00 * 141.00 6.10 6.00 6.00 5.20 5.10 5.22 3.78 3.71
Share price - at year end (Rs) 1,739.74 1,524.39 1,236.65 1,009.33 1,506.18 1,575.64 908.22 468.60 373.43 136.57
Contribution to
national exchequer (Rs in million) 77,620.98 63,067.73 78,287.21 77,045.51 70,409.10 74,298.34 77,328.34 73,242.31 58,599.39 55,511.89
OPERATIONAL
Balance reserves
and Resources (MMBOE) 642 612 568 573 601 612 363 388 415 439
Energy produced (MMBOE) 36.91 35.87 33.41 33.64 34.02 32.32 30.48 29.21 27.88 26.71
Energy produced (BOE per day) 101,109 98,281 91,283 92,159 93,216 88,537 83,279 80,014 76,384 73,168
Gas Production (BSCF) 283.2 269.3 249.6 257.1 257.2 243.8 232.0 224.7 217.3 211.2
Oil production (Barrels) 458,509 457,205 383,548 405,055 543,820 554,081 472,413 414,433 175,312 192,259
LPG production (Metric ton) 32 54 22 20 - 20 25 362 263 477
* This includes final dividend of 620% for the year ended June 30, 2022 proposed by the Board of Directors for approval of members in the Annual General Meeting
to be held on September 28, 2022.
Pattern of Shareholding
as at June 30, 2022
No. of Total
Shareholders Shareholding shares held
933 1 to 100 32,243
533 101 to 500 141,407
310 501 to 1,000 235,891
605 1,001 to 5,000 1,304,713
111 5,001 to 10,000 807,898
45 10,001 to 15,000 551,130
34 15,001 to 20,000 593,725
24 20,001 to 25,000 537,489
14 25,001 to 30,000 395,510
12 30,001 to 35,000 388,150
9 35,001 to 40,000 338,625
11 40,001 to 45,000 468,024
12 45,001 to 50,000 576,305
6 50,001 to 55,000 320,598
3 55,001 to 60,000 168,716
6 60,001 to 65,000 376,076
4 70,001 to 75,000 288,586
4 75,001 to 80,000 308,999
4 80,001 to 85,000 335,833
1 85,001 to 90,000 86,301
2 95,001 to 100,000 188,833
1 110,001 to 115,000 112,593
3 115,001 to 120,000 352,849
1 120,001 to 125,000 122,190
3 125,001 to 130,000 384,177
1 135,001 to 140,000 138,077
1 140,001 to 145,000 141,926
1 145,001 to 150,000 146,181
1 170,001 to 175,000 174,119
1 185,001 to 190,000 188,168
1 205,001 to 210,000 207,160
1 215,001 to 220,000 219,645
2 245,001 to 250,000 497,120
1 250,001 to 255,000 253,271
1 265,001 to 270,000 269,165
1 285,001 to 290,000 287,982
2 315,001 to 320,000 637,192
1 320,001 to 325,000 322,692
2 325,001 to 330,000 655,259
1 330,001 to 335,000 332,719
1 375,001 to 380,000 375,133
1 415,001 to 420,000 415,355
1 460,001 to 465,000 463,766
1 520,001 to 525,000 521,016
1 575,001 to 580,000 579,232
1 620,001 to 625,000 621,980
1 640,001 to 645,000 644,844
1 735,001 to 740,000 736,120
1 955,001 to 960,000 958,060
1 1,530,001 to 1,535,000 1,533,945
1 1,875,001 to 1,880,000 1,877,208
1 2,135,001 to 2,140,000 2,135,832
1 2,210,001 to 2,215,000 2,214,858
1 2,535,001 to 2,540,000 2,536,423
1 24,525,001 to 24,530,000 24,526,716
1 26,455,001 to 26,460,000 26,458,162
1 52,915,001 to 52,920,000 52,916,313
2,726 133,402,500
Pattern of Shareholding as at June 30, 2022
Categories of Shareholders
Shares Pending Total
Categories of Shareholders Numbers Held Shares * Shares %Age
Associated Companies, Undertakings And Related Parties

Oil & Gas Development Company Limited 1 26,458,162 222,338 26,680,500 20.00
Fauji Foundation 1 52,916,325 444,675 53,361,000 40.00
Mutual Funds
Trustee HBL Energy Fund 1 29,439 - 29,439 0.02
Trustee ABL Islamic Pension Fund Equity Sub Fund 1 6,261 - 6,261 0.00
Trustee ABL Pension Fund Equity Sub Fund 1 5,407 - 5,407 0.00
Trustee ABL Stock Fund 1 219,645 - 219,645 0.16
Trustee AKD Index Tracker Fund 1 6,898 52 6,950 0.01
Trustee Al Ameen Islamic Dedicated Equity Fund 1 1,290 - 1,290 0.00
Trustee Al Habib Asset Allocation Fund 1 1,800 - 1,800 0.00
Trustee Al Habib Islamic Stock Fund 1 9,000 - 9,000 0.01
Trustee Al Habib Stock Fund 1 4,300 - 4,300 0.00
Trustee Al Meezan Mutual Fund 1 329,484 1,694 331,178 0.25
Trustee Al-Ameen Islamic Asset Allocation Fund 1 75,382 - 75,382 0.06
Trustee Al-Ameen Islamic Energy Fund 1 60,301 - 60,301 0.05
Trustee Al-Ameen Shariah Stock Fund 1 644,844 - 644,844 0.48
Trustee Alfalah GHP Alpha Fund 1 21,992 - 21,992 0.02
Trustee Alfalah GHP Islamic Dedicated Equity Fund 1 9,294 - 9,294 0.01
Trustee Alfalah GHP Islamic Stock Fund 1 72,767 - 72,767 0.05
Trustee Alfalah GHP Stock Fund 1 45,279 - 45,279 0.03
Trustee Alfalah GHP Value Fund 1 9,415 65 9,480 0.01
Trustee Alhamra Islamic Stock Fund 1 129,000 - 129,000 0.10
Trustee Allied Finergy Fund 1 20,014 - 20,014 0.02
Trustee APF-Equity Sub Fund 1 18,087 - 18,087 0.01
Trustee APIF Equity Sub Fund 1 29,835 - 29,835 0.02
Trustee Atlas Islamic Dedicated Stock Fund 1 24,308 - 24,308 0.02
Trustee Atlas Islamic Stock Fund 1 207,160 121 207,281 0.16
Trustee Atlas Stock Market Fund 1 325,775 182 325,957 0.24
Trustee AWT Islamic Stock Fund 1 3,012 - 3,012 0.00
Trustee AWT Stock Fund 1 430 - 430 0.00
Trustee Faysal Islamic Dedicated Equity Fund 1 62,107 - 62,107 0.05
Trustee Faysal Islamic Stock Fund 1 17,690 - 17,690 0.01
Trustee First Capital Mutual Fund 1 12 93 105 0.00
Trustee HBL Equity Fund 1 3,500 - 3,500 0.00
Trustee HBL Growth Fund 1 18,353 - 18,353 0.01
Trustee HBL Investment Fund 1 13,966 - 13,966 0.01
Trustee HBL IPF Equity Sub Fund 1 4,546 169 4,715 0.00
Trustee HBL Islamic Asset Allocation Fund 1 2,835 - 2,835 0.00
Trustee HBL Islamic Equity Fund 1 3,771 - 3,771 0.00
Trustee HBL Multi Asset Fund 1 755 - 755 0.00
Trustee HBL PF Equity Sub Fund 1 1,834 - 1,834 0.00
Trustee JS Islamic Fund 1 13,275 - 13,275 0.01
Trustee JS Islamic Pension Savings Fund-Equity Account 1 4,075 - 4,075 0.00
Trustee JS Large Cap. Fund 1 9,860 - 9,860 0.01
Trustee JS Pension Savings Fund Equity Account 1 5,139 - 5,139 0.00
Trustee KSE Meezan Index Fund 1 86,301 398 86,699 0.06
Trustee Lakson Equity Fund 1 57,280 1,222 58,502 0.04
Trustee Lakson Islamic Tactical Fund 1 8,826 - 8,826 0.01
Trustee Lakson Tactical Fund 1 7,856 - 7,856 0.01
Trustee MCB Pakistan Asset Allocation Fund 1 43,255 - 43,255 0.03

Trustee MCB Pakistan Stock Market Fund 1 375,133 - 375,133 0.28

Trustee Meezan Asset Allocation Fund 1 55,936 - 55,936 0.04
Trustee Meezan Balanced Fund 1 77,191 363 77,554 0.06
Trustee Meezan Energy Fund 1 49,424 - 49,424 0.04
Trustee Meezan Islamic Fund 1 1,877,208 10,889 1,888,097 1.42
Trustee Meezan Tahaffuz Pension Fund Equity Sub Fund 1 332,719 1,573 334,292 0.25
Trustee NBP Balanced Fund 1 20,633 - 20,633 0.02
Trustee NBP Islamic Active Allocation Equity Fund 1 17,097 - 17,097 0.01
Trustee NBP Islamic Energy Fund 1 77,012 - 77,012 0.06
Trustee NBP Islamic Sarmaya Izafa Fund 1 138,077 - 138,077 0.10
Trustee NBP Islamic Stock Fund 1 253,271 - 253,271 0.19
Trustee NBP Sarmaya Izafa Fund 1 26,130 - 26,130 0.02
Trustee NBP Stock Fund 1 521,016 - 521,016 0.39
Trustee Pakistan Capital Market Fund 1 15,378 - 15,378 0.01
Trustee UBL Asset Allocation Fund 1 21,141 - 21,141 0.02
Trustee UBL Dedicated Equity Fund 1 1,460 - 1,460 0.00
Trustee UBL Retirement Savings Fund Equity Sub Fund 1 79,414 - 79,414 0.06
Trustee UBL Stock Advantage Fund 1 322,692 - 322,692 0.24
Trustee Unit Trust of Pakistan 1 19,260 - 19,260 0.01
Trustee Meezan Dedicated Equity Fund 1 53,588 - 53,588 0.04
Trustee Al-Ameen Islamic Ret. Sav. Fund-Equity Sub Fund 1 112,593 - 112,593 0.08
Trustee Alhamra Islamic Asset Allocation Fund 1 85,000 - 85,000 0.06
Trustee HBL Islamic Stock Fund 1 10,929 - 10,929
MC FSL - Trustee JS Growth Fund 1 71,052 - 71,052
MCBFSL - Trustee ABL Islamic Stock Fund 1 188,168 - 188,168
MCBFSL - Trustee ABL Islamic Dedicated Stock Fund 1 45,752 - 45,752
Trustee PIML Islamic Equity Fund 1 - 42 42 0.00
Trustee PIML Strategic Multi Asset Fund 1 - 30 30 0.00
Trustee First Crosby Dragon Fund 1 - 24 24 0.00
Trustee JS KSE-30 Index Fund 1 - 9 9 0.00
NIT & ICP

Investment Corporation of Pakistan 1 4,031 - 4,031 0.00
IDBL (ICP Unit) 1 964 - 964 0.00
Trustee National Investment (Unit) Trust 1 2,536,423 46,268 2,582,691 1.94
Trustee NIT Asset Allocation Fund 1 3,860 - 3,860 0.00
Trustee NIT Islamic Equity Fund 1 129,780 - 129,780 0.10
Trustee NIT-Equity Market Opportunity Fund 1 415,355 5,913 421,268 0.32
Trustee NITIPF Equity Sub-Fund 1 4,788 - 4,788 0.00
Trustee NITPF Equity Sub-Fund 1 1,326 - 1,326 0.00
Banks, Development Financial Institutions

and Non-Banking Financial Institutions
National Development Finance Corp 1 5,398 - 5,398 0.00
First Credit & Investment Bank Limited 1 1,607 - 1,607 0.00
Bank Alfalah Limited 1 269,165 - 269,165 0.20
Habib Bank Limited-Treasury Division 1 70,838 - 70,838 0.05
MCB Bank Limited - Treasury 1 146,181 - 146,181 0.11
Meezan Bank Limited 1 317,784 - 317,784 0.24
National Bank of Pakistan 1 958,060 - 958,060 0.72
Samba Bank Limited 1 23,000 - 23,000 0.02
Pattern of Shareholding as at June 30, 2022
Categories of Shareholders
Insurance & Takaful Companies

Adamjee Life Assurance Co.ltd - DGF 1 6,800 - 6,800 0.01
Adamjee Life Assurance Company Limited 1 73,929 - 73,929 0.06
Adamjee Life Assurance Company Ltd-IMF 1 319,408 - 319,408 0.24
Alfalah Insurance Company Limited 1 5,000 - 5,000 0.00
Allianz EFU Health Insurance Limited 1 1,290 - 1,290 0.00
Atlas Insurance Limited 1 24,260 - 24,260 0.02
Century Insurance Company Ltd 1 2,391 - 2,391 0.00
Dawood Family Takaful Limited 1 4,682 - 4,682 0.00
EFU Life Assurance Limited 1 621,980 - 621,980 0.47
GHAF Limited 1 2,000 - 2,000 0.00
IGI General Insurance Limited 1 3,100 - 3,100 0.00
IGI Life Insurance Limited 1 1,826 - 1,826 0.00
Jubilee General Insurance Company Limited 1 50,000 - 50,000 0.04
Jubilee General Window Takaful Fund-PTF 1 4,000 - 4,000 0.00
Jubilee General Window Takaful Operations 1 1,500 - 1,500 0.00
Jubilee Life Insurance Company Limited 1 2,214,858 - 2,214,858 1.66
State Life Insurance Corp. of Pakistan 1 1,533,945 - 1,533,945 1.15
Modarabas
B.R.R. Guardian Modaraba. 1 9,771 - 9,771 0.01
Pension Funds
Abbott Laboratories (Pakistan) Limited Staff Pension Fund 1 13,904 - 13,904 0.01
Trustee AGIPF Equity Sub-Fund 1 2,979 - 2,979 0.00
Trustee AGPF Equity Sub-Fund 1 1,381 - 1,381 0.00
Trustee NAFA Islamic Pension Fund Equity Account 1 64,898 - 64,898 0.05
Trustee NAFA Pension Fund Equity Sub-Fund Account 1 29,671 - 29,671 0.02
Trustee Pakistan Pension Fund - Equity Sub Fund 1 41,860 - 41,860 0.03
Trustee Alhamra Islamic Pension Fund - Equity Sub Fund 1 31,468 - 31,468 0.02
Engro Corp Ltd Mpt Employees Def Contr Pension Fund 1 2,473 - 2,473 0.00
HPSL Pension Fund 1 4,600 - 4,600 0.00
Indus Motor Company Limited Employees Pension Fund 1 5,100 - 5,100 0.00
Pakistan Petroleum Executive Staff Pension Fund (DC Shariah) 1 13,640 - 13,640 0.01
Pakistan Petroleum Executive Staff Pension Fund-DC Shariah 1 7,975 - 7,975 0.01
Pakistan Refinery Limited Workmen Pension Fund 1 870 - 870 0.00
Pakistan Refinery Ltd Management Staff Pension Fund 1 6,860 - 6,860 0.01
Pfizer Pakistan DC Pension Fund 1 4,526 - 4,526 0.00
Trustee National Bank of Pakistan Employees Pension Fund 1 463,766 - 463,766 0.35
Trustee Pak Tobacco Co Ltd Staff Def Contri Pen Fd 1 6,872 - 6,872 0.01
Trustee Pak Tobacco Co Ltd Staff Pension Fund 1 47,354 - 47,354 0.04
Trustee Pak. Petroleum Exec. Staff Pen. Fund DC Conventional 1 7,933 - 7,933 0.01
Trustee Pakistan Petroleum Executive Staff Pension Fund 1 93,566 - 93,566 0.07
Trustee Pakistan Petroleum Non Executive Staff Pension Fund 1 36,930 - 36,930 0.03
Trustee-ANPL Management Staff Pension Fund 1 1,573 - 1,573 0.00
Trustee-Millat Tractors Ltd. Employees Pension Fund 1 3,160 - 3,160 0.00

Trustees Nestle Pakistan Limited Employees Pension Fund 1 16,693 - 16,693 0.01
Trustees of Cresent Steel & Allied Products Ltd-Pension Fund 1 326 - 326 0.00
Trustee-Shell Pakistan DC Pension Fund 1 10,597 - 10,597 0.01
Trustee-Shell Pakistan Management Staff Pension Fund 1 9,463 - 9,463 0.01
Trustee-Shell Pakistan Staff Pension Fund 1 263 - 263 0.00
Trustees-ICI Pakistan Mngt Staff Pen.f 1 10,938 - 10,938 0.01
Unilever Pakistan DC Pension Fund (Sub Fund A) 1 9,789 - 9,789 0.01
Unilever Pakistan DC Pension Fund (Sub Fund B) 1 4,843 - 4,843 0.00
Unilever Pension Plan 1 553 - 553 0.00
Wyeth Pakistan DC Pension Fund 1 714 - 714 0.00
Trustee-The Kot Addu Power Co. Ltd. Employees Pension Fund 1 8,460 - 8,460 0.01
Local Individuals 2,370 6,277,450 - 6,277,450 4.71

Foreign Individuals 2 20,466 - 20,466 0.02
Others
- Government of Pakistan 1 24,526,716 - 24,526,716 18.39
- Federal Board of Revenue 1 54,797 - 54,797 0.04
- Joint Stock Companies 66 1,033,499 - 1,033,499 0.77
- Executives 4 3,991 - 3,991 0.00
- Foreign Companies 18 401,984 - 401,984 0.30
- Others 117 2,714,763 - 2,714,763 2.04
2,726 132,666,380 736,120 133,402,500 100
*Public Sector Companies And Corporations

Oil & Gas Development Company Limited 26,458,162 222,338 26,680,500 20.00
Shareholders Holdings 5% Or More Voting Interest
Fauji Foundation 52,916,325 444,675 53,361,000 40.00
Government of Pakistan 24,526,716 - 24,526,716 18.39
Shares Held By Sponsor Shareholders
Fauji Foundation 52,916,325 444,675 53,361,000 40.00
Government of Pakistan 24,526,716 - 24,526,716 18.39
Shares Held By Directors And Executives
Directors 518 - 518 0.00
Executives 3,991 - 3,991 0.00
During the financial year the trading in shares of the company by the Directors, CEO, CFO, Company Secretary, Executives and their spouses and minor
children is as follows:
Name Dates Purchase Sale "Rate Rs. Per Share**
Mr. Faiz Chapra 6-Jul-21 980 1,517.95
Ms. Adeela Waqar 02-Jul-21 20 1,536.01
Ms. Adeela Waqar 04-Nov-21 8 83 1,685.52
Mr. Abid Hasan 09-Jun-22 10 1,668.00
Ms. Seema Adil 07-Jun-22 500 1,664.93
Mr. Abid Hasan 19-Aug-22 490 1,699.05
* Pending shares represent bonus shares withheld by the Company and have not been issued due to pending resolution of issue relating to
deduction of withholding income tax on issuance of bonus shares.
** Average rates
Directors'
Report
The Board of Directors of Mari Petroleum Company Limited (MPCL) is pleased to
present the Directors’ Report and Audited Financial Statements of the Company
for the year ended June 30, 2022, together with the Auditors’ Report thereon.
Online Participants
MPCL Board of Director's Meeting-Head Office, Islamabad
EXECUTIVE SUMMARY value to the shareholders. Some of 101,109 BOE. This year is the first-
FY 2021 was the most successful the key highlights of the FY 2022 ever during which the Company
year ever for MPCL in terms are presented below, followed by managed to achieve six digit daily
of its operational and financial detailed sections on focus areas: average net production rate.
performance. Doing better than FY
2021 was on the cards for FY 2022 Health Safety and Environment: Financial Performance:
but never a given due to the nature The Company has HSE at the core of The Company achieved the highest-
of the E&P industry where external its values, and remains committed ever net sales of PKR 95.1 billion,
factors could have a significant to comply with all applicable HSE resulting in the highest-ever profit
bearing on the performance even standards. HSE performance during before tax of PKR 52.1 billion. The
with the delivery of the business the year remained consistent and net profit would have been PKR
plan in its entirety. sustainable; the Company achieved 38.27 billion if the super tax was not
all of its HSE related targets despite levied by the government. Even after
With our continued focus on working in challenging operational accounting for the impact of super
the core business and with the areas and spending about 17 million tax, the net profit was still the highest
blessings of Almighty Allah, FY recorded man-hours. ever, standing at PKR 33.1 billion.
2022 has proved to be another
historic year for the Company. Our Hydrocarbon Production: Contribution to
focus has been on the longer-term The Company achieved the highest- National Exchequer:
sustainability of the Company ever annual net production of With an overall contribution of
while also delivering immediate 36.91 MMBOE at a daily average of around PKR 78 billion, the Company
Vibroseis Trucks - Ziarat Block, Balochistan
remained one of the largest successful geological plays SGPC Phase-I was also
contributors to the government further towards the west of the commissioned during the year. The
exchequer in the form of taxes, Country. Phase-II to process 200 MMSCFD of
duties and levies. Goru-B gas is currently in advanced
Reserves and Resources: stages of construction and first gas
Forex Savings: The Company added 12 MMBOE is expected to be achieved during
The Company’s share of the into its 2P reserves and also Q2 of FY 2023.
hydrocarbon production resulted in achieved a remarkable increase
foreign exchange savings of around in its contingent resources Phase-III of the SGPC project
USD 3 billion for the year; assuming by adding 55 MMBOE of new (also known as HRL swing volume
crude oil price of US$ 80 per barrel. resources. The overall (2P + 2C) project) which was commissioned
reserves and resources of the with the installation of 2
Exploration Success: Company stood at 642 MMBOE compressors during FY 2021, has
The Company made a landmark on June 30, 2022. now been completed as the 3rd
gas discovery in Bannu West Block, remaining compressor has been
located in North Waziristan, KP. It is Key Development Projects: commissioned and overall export
the first-ever major discovery made The Company commissioned its capacity has been enhanced up
by the Company outside the Mari own new 20-inch, 25-km cross- to 60 MMSCFD. This project has
Field and the largest discovery in country pipeline, establishing Mari provided the Company greater
Pakistan in more than a decade. Field’s connectivity with SNGPL flexibility to divert undrawn HRL
The discovery has extended the network. volumes of power and fertilizer
Directors' Report
Sachal Gas Processing Complex - Mari Gas Field, Daharki, Sindh
customers into the SNGPL network, value chain besides pursuing Corporate Social Responsibility
if required. opportunities for investments in (CSR):
oil and gas exploration. Earning the trust of all
Portfolio Expansion: stakeholders, especially the
The Company’s international The Company is also considering communities living in the areas
footprint was established with of leveraging its core of operations of the Company,
the formal award of Offshore competencies towards clean is of the utmost importance to
Block-5 in Abu Dhabi by the UAE energy. the Company. The Company has
Government to the consortium historically supported various
of 4 leading Pakistani E&P Revamping of Mari Services social causes and followed that
Companies. This block is located in Division (MSD): proud legacy during the year.
a highly prospective basin and the MSD remains a key pillar of the
consortium plans to drill the first Company’s business. Its capability The highlight of the year was
well during 2023. of performing seismic and drilling a deposit of over PKR 3 billion
operations in remote and security (under production bonus and
Additionally, the Company was sensitive areas has enabled the social welfare obligations) for
awarded 5 new blocks in the 2022 Company to not only complete community development projects
competitive bidding round run by seismic projects in strategic in District Ghotki, Sindh.
the Government of Pakistan. blocks but also to deliver Bannu
West well successfully. Another A large number of projects are
Diversification Efforts: achievement for MSD during the under execution which shall
During the year, the Board approved year was to secure the first-ever bring meaningful change for the
the divestment of the Company’s 3rd party businesses in its history, communities upon completion.
entire 20% equity interest in worth around USD 15 million. The Company also spent PKR
National Resources (Private) 800 million over and above its
Limited, for which approvals are in MSD has saved the Country obligations on high-impact social
process. precious forex of around USD welfare projects.
35 million this year, creating job
The Company is exploring various opportunities for the locals, and Organization and Culture:
investment avenues in core and building its credibility as a key The Company continued its focus
near-core sectors in the energy market player. on enhancing its organizational
Valves Assembly - Zarghun South, Balochistan
performance by bringing
process improvements,
performance based reward
structure, inducting new talent,
introduction of international
best practices and use of new
technology to manage its
business more in-line with the
international E&P industry.
These processes have already

started to bring fruit and the
Company has developed a
robust 10-year strategy, and 5 &
3 years business plans capturing
short, medium and long-term
• Drilling of 2nd exploration and • Management of rising circular
opportunities for maximizing
2 appraisal wells in Bannu debt to have access to
production and reserves/
West block sufficient capital for aggressive
resource maturation.
exploration and development
• Drilling of the 1st exploratory
spending.
FUTURE OUTLOOK well in Block-28 in Balochistan
The Company has clear priorities
• Completion of seismic
and remains focused on ensuring Tribute to
acquisition in Ziarat and Wali
that we meet our key objectives Law Enforcement Agencies:
West blocks; kick off future
as listed below: We would like to pay special
seismic projects in new
tribute to the LEAs for their
• Safe completion and start-up acquired blocks
relentless efforts and sacrifices for
of SGPC project
• MSD capability building providing us fool-proof security and
• Installation and start-up of and effective utilisation for unprecedented support, allowing us
EWT facilities on Bannu West internal as well as 3rd party to operate in the security sensitive
well projects areas of KP and Balochistan.
Directors' Report
strategy, multiple initiatives were

launched pertaining to cultural
enrichment, developing process
safety fundamentals and studies,
and revamping of systems and
processes.
Certifications
Based on IMS/ISMS audits, MPCL
achieved re-certification on the
following ISO standards:
• ISO 9001: 2015

(Quality Management System)
• ISO 14001: 2015
(Environmental Management
System)
• ISO 45001: 2018
(Occupational Health & Safety
Management System)
• ISO 27001: 2013
(Information Security
Training on Fire Emergency Handling
- Head Office, Islamabad Covid-19 Preparedness Management System)
HEALTH, SAFETY & ENVIRONMENT Environmental Protection

The Company’s network comprises
COVID-19 Management
many sites across Pakistan mostly
Throughout the pandemic, the Company ensured effective implementation
in remote areas with barren lands.
of robust preventive measures to safeguard its employees, assets and
The teams at all these locations
working environment. The Operational sites ensured business continuity by
are conscientiously working
implementing protocols that were developed keeping in view the precarious
for improving environmental
pandemic situation. With the dedication of the employees, there were no
sustainability and mitigating
major hindrances to the operations at any site.
impact of climate change through
plantation and avoiding loss of
HSE Performance
vegetation during operational
While increasingly operating in geologically challenging and security-
activities.
sensitive areas, the Company’s HSE performance against various KPIs,
with more than 16.9 million recorded man-hours (employees and
HSE Trainings and Awareness
contractual workforce), is reflective of the management’s commitment and
Sessions
determination towards HSE.
Training and awareness are
important for implementing HSE
Criteria Target Achieved IOGP*- Overall
standards, reducing HSE incidents,
Total Recordable Case Frequency (TRCF) 0.43 0.12 0.77 and bringing risks to As Low As
Lost Time Injury Frequency (LTIF) 0.32 0.12 0.22 Reasonably Practicable.
Process Safety Event Rate (PSER) – Tier I 0.24 0.00 0.12
Process Safety Event Rate (PSER) – Tier II 0.48 0.09 0.35 Foregoing in view, more than
* International Oil and Gas Producers 42,780 training man-hours were
clocked for over 1,960 HSEQ
Mari Services Division, despite operating in difficult terrains and facing trainings and around 578 HSEQ
security challenges, posted zero recordable injuries. Crisis & Emergency Drills were
organized for employees at all
As part of the Company's HSE performance and systems improvement locations during the year.
Further, a series of awareness sessions on life-saving rules titled

"Safer MPCL", Process Safety Fundamentals, and Process Safety Event
Classification etc. were carried out across different operational sites.
HYDROCARBON PRODUCTION
The hydrocarbon production for the year is summarized below:
Year ended June 30

Increase /
2022 2021 (decrease)
Cumulative Per day Cumulative Per day Cumulative
Gas (MMBOE)
Mari Field 272,459 747 256,903 704 6%
Other Fields 10,714 29 12,354 34 (13%)
283,173 776 269,257 738 5%
Crude oil (barrels)
Mari Field 23,682 65 17,700 49 34%
Other Fields 434,827 1,191 439,505 1,204 (1%)
458,509 1,256 457,205 1,253 0.3%
Total
production 36.91 101,109 35.87 98,281 3%
in equivalent million million
BOEs
Production Operations at Mari Field

Despite consistent low gas offtakes by power customers, and emergency
shutdowns/ unplanned turnaround of the fertilizer plants, the Company was
able to achieve production above the threshold of 577.5 MMSCFD of gas
for significant part of the year. This was achieved through better production
planning and proactive coordination with the customers and regulators for
diverting undrawn volumes to other customers depending on their individual
requirements.
During the year, the production commenced from Hilal and Iqbal discoveries
with supply of gas to Pak Arab Fertilizers Limited.
Directors' Report
Trade Debts
The Company’s trade debts include
overdue receivables from power
generation and gas distribution
companies mainly on account
of prevailing inter-corporate
circular debt. In order to expedite
the recovery, the Company is
relentlessly following-up with
Fire Suppression System
the customers and the federal
Production Operations at Other Fields government for early settlement of
Commercial production commenced from the development well Togh the outstanding dues.
Bala in OGDCL operated Kohat Block, with the injection of gas into SNGPL
network. EXPLORATION, DEVELOPMENT
AND OPERATIONAL ACTIVITIES
Various available production enhancement techniques are being
Discoveries during the year
contemplated and applied in other fields to cater for natural depletion and
Bannu West: The exploratory
to address technical issues, which arise from time to time.
well Bannu West-1 was spud-in
on June 06, 2021 and successfully
FINANCIAL PERFORMANCE
drilled down to the depth of 4,915
Year ended June 30 meters, with Company’s own rig.
Increase
Description 2022 2021 Post-acid job test rates were in the
order of 50 MMSCFD of gas and
Net Sales 95,134 73,018 30%
300 barrels per day of condensate
Profit Before Tax 52,116 43,931 19% from the Lockhart formation. Hangu
Income Tax (13,845) (12,486) 11% Formation also flowed gas at the
Profit After Tax 38,271 31,445 22% rate of 1.6 MMSCFD.
Super Tax (5,208) - 100%

Kalchas Block: The exploratory
Net Profit for the Year 33,063 31,445 5% well Kaleri Shum-1 was spud-
in on December 31, 2021, and
EPS (Rs. Per Share) 247.84 235.71 5% drilled down to the depth of 1,907
meters. The well has been declared
The increase in the net sales was achieved by enhancing production, benefit a discovery and is being further
derived from the swing volume project, which enabled the Company to evaluated from a commercial point
achieve higher days of incremental production from Mari Field and higher of view. Based the on post-well
applicable oil prices and exchange rate. analysis, hydrocarbon potential
shall be finalized during the FY
Profit Appropriation (Year ended June 30, 2022) 2023.
(Rs. in million) Drilling Activities during the Year:
Unappropriated profit brought forward 99,010 Exploratory Wells

In total, nine exploratory wells were
Total comprehensive income for the year 33,079
drilled during the year. In addition to
132,089
the above mentioned discoveries,
Distribution to shareholders: drilling of exploratory well Sundha
Thal-1 (Kalchas Block) is in progress
Final cash dividend for the year ended June 30, 2021 (10,005)
@ Rs 75.00 per share and is expected to complete in
the FY 2023. Another exploratory/
Interim cash dividend for the year ended June 30, 2022 (8,271)
appraisal well Bolan South-1 (Ziarat
@ Rs 62.00 per share
Block) was drilled and is suspended
Unappropriated profit carried forward 113,813
for further evaluation.
Reserves Replacement
To ensure continuity of the
Company in the long-term, the
Company’s efforts are directed
towards reserves replacement
in addition to managing and
enhancing current production.
During the year, an estimated

12 MMBOE were added to the
proved and probable reserves,
which translates into Reserve
Replacement Ratio (RRR) of 32%.
The increase in reserves primarily
came from the movement of
contingent resources into reserves
Processing Facilities – Zarghun South, Balochistan for development activity in Hilal &
Iqbal (Mari Field), Bolan East (Ziarat
Further, exploratory wells namely Further, development well MD- Block), Togh (Kohat Block), Benari
Surghar X-1 (Karak Block), Daim- 17 in Mari Field has been drilled (Shah Bander Block) and Bashar
1 (Sujawal Block), Mian Miro and completed as a gas producer. (Hala Block) fields.
Deep-1 (Sukkur Block), Mari PKL Drilling of HRL 121 and Mari-122H
South-1 (Mari Field) and Bazil was in progress. In addition, the Company’s
X-1 (Hala Block) were drilled and net contingent resources also
declared dry or non-commercial. increased by an estimated 55
MMBOE mainly on account of the
Development wells Bannu West gas discovery and
Development well Togh Bala addition of access project into
has been completed in Kohat the MPCL portfolio. Overall, these
Block as a gas producer and is additions resulted in around 345%
currently producing ~9 MMSCFD addition to the MPCL contingent
of gas and ~100 Barrels/day of resources.
condensate.
Sujawal Gas and Condensate Field - Sujawal Block, Sindh

Directors' Report
Phase-III of the SGPC project which

was commissioned by installation of
2 compressors during FY 2021 (also
known as HRL swing volume project),
has now been completed as the last
remaining compressor has also been
commissioned by enhancing overall
export capacity up to 60 MMSCFD.
This project has provided the
Company greater flexibility to divert
undrawn HRL volumes of power and
fertilizer customers into the SNGPL
network.
Asset Integrity Management

System (AIMS): Maintenance and
Asset Integrity management of
production assets also remained a
key focus to keep them available
Sachal Gas Processing Complex (SGPC), Mari Field, Daharki for service via multiple integrity
and reliability campaigns. Multiple
Seismic Data Acquisition pipeline, establishing Mari Field’s options were applied for the
To identify and mature the connectivity with SNGPL network. incorporation of machine-learning
prospects for future exploratory and artificial intelligence into oil and
drilling, the Company has completed gas production operations. Multiple
Sachal Gas Processing Complex
the seismic data acquisition in Block reliability studies were undertaken
(SGPC): Phase I of SGPC was
28 (1,356 L.km 2D), Taung Block to shift conventional time-based
completed and around 20 MMSCFD
(340 Sq.km 3D) and Kohat Block programs to proactive/predictive
of gas from Tipu compartment of
(157 L.km 2D), while 234 Sq.km 3D based models. Pilot projects for
the “Goru B” reservoir was injected
seismic acquisition in Ziarat Block integrated performance management
into the SNGPL network at the
is in progress. Further, the crew has of compression packages, including
end of March 2022, via Company’s
been mobilized to start seismic data visualization and analytics are in
own cross-country pipeline. After
acquisition in the Wali West Block. progress.
3 weeks into the operation, the
plant’s planned shutdown was
Significant Development Projects: The development of an AIMS
brought forward by one month for
framework is in progress that shall
Early Production from Bannu ensuring optimal and sustained
provide a platform for the safe and
West Discovery production and integration of Phase
reliable operations of aged production
Fast-track early production facility I into Phase II. The company is
critical assets. The first-ever annual
(EPF) installation is envisaged working closely with the vendors for
Asset Integrity report of Mari Field has
to bring the gas online from the attaining the both.
been published. Turnarounds were
Bannu West discovery as soon as
executed safely and successfully at
practicable. High-level collaboration The Phase-II to process 200 Mari Field, Kalabagh and Zarghun
has been commenced with SNGPL MMSCFD of Goru-B gas is currently Fields for internal inspections and
to establish connectivity with the in advanced stages of construction restore inherent reliability.
national grid, while parallel activities and first gas is expected to be
for early EPF design and equipment achieved during Q2 of FY 2023. Well Integrity Management
sourcing are in progress. The project is behind schedule due System (WIMS): WIMS ensures that
to factors outside our control e.g. active wells are integral and always
Significant Projects at Mari Field shipping related delays, extremely available to operate in safe & efficient
Cross Country Pipeline: The hot weather in summer followed by manner. Loss of wells’ integrity may
Company commissioned its own unprecedented rainfall and floods cause damage in terms of people,
new 20-inch, 25-km cross-country during monsoon season. environment, asset and reputation
of the Company. Therefore, various

initiatives have been undertaken
to develop world class WIMS at
MPCL. Experienced well integrity
professionals are on-board in
newly-developed Well Integrity
Team. WIMS framework & reference
documents i.e. standards/manuals
have been developed and their
implementation is in progress.
Well integrity will be assured during

the life cycle of the wells (planning
to abandonment) capturing lessons
learned and using international best
practices.
Mari Field Sustainability Project:

The Company aims to develop,
integrate and synergize all on- Team Discussion on Geographical Map - Head Office, Islamabad
going, planned activities and new

ideas into an integrated roadmap in HRL Reservoir to improve both national and international
to maximize value from all Mari recovery. Currently, its drilling is advisors on energy sector and
Field reservoirs. In addition, we are in progress. mergers & acquisitions experts to
focused on effectively managing evaluate available opportunities for
• Successful development well
late-life uncertainties and risks its possible participation.
MD-17 in Goru-B reservoir
of Mari. Moreover, there are
tested at ~25 MMSCFD provided
several potential opportunities and International Expansion – PIOL
additional deliverability.
options to improve operational MPCL along with OGDCL, PPL and
efficiency, enhance production and • Assessed suitable formation GHPL has incorporated a new
maximize ultimate recovery from for produced water disposal company by the name of Pakistan
the existing reservoirs, which are in Mari Field and successful International Oil Limited (PIOL) in
under evaluation. Following are completion of a new well for Abu Dhabi Global Market (ADGM).
key highlights of the project during produced water disposal in an MPCL, OGDCL, PPL and GHPL
2021-22: environment-friendly manner. each have 25% equity stake in the
• Identified and assessed • Initiated development of Goru-B company. PIOL has entered into
reserves acceleration and and SML-SUL high quality 3D the concession agreement with
additional opportunities to reservoir simulation models to Abu Dhabi National Oil Company
achieve HRL reservoir plateau improve reservoir performance (ADNOC) for the Offshore Block-5
extension. prediction. which was awarded to the
Consortium in August 2021. At
• Developed production • Developed SML-SUL Integrated
present, PIOL is carrying out the
guidelines to optimize Production Model (IPM) and
approved work program, which
production and recovery from evaluated long-term production
includes the exploration and
HRL Reservoir. Production outlook. Identified potential
appraisal activities.
management model has been opportunities for further
developed for continuous development and resource
Local Expansion
monitoring and optimizing HRL additions.
During the year, the Government
production and recovery.
of Pakistan offered 14 blocks in
• Application of new technology: PORTFOLIO EXPANSION AND the Bid Round 2021 for the grant
Technical evaluation and DIVERSIFICATION of new exploration licenses. The
recommendation of first-ever As part of its long term strategy, the Company actively participated
horizontal well Mari-122H Company is working closely with and successfully secured five
Directors' Report
Pipeline Pigging
blocks - two (Dadhar and Mach) as

an operator and three (Kalat West,
Sui-North, and Meeranpur) as a non-
operating partner with other E&P
companies. Execution of ELs/PCAs of
said blocks is expected shortly.
During the year, the Company

executed PCAs of two blocks (Nareli
and North Dhurnal), which were
awarded to MPCL in Bid Round 2020.
One of the JV partners in Bela West

Block surrendered its 35% working
interest. The Company acquired an
additional 14% working interest, thus
enhancing its working interest in the
block to 39%.
The Company has also executed

a farm-in agreement with MOL
Pakistan for the acquisition of
a significant working interest in
Margala Block. The assignment of
the said working interest is under
government approval.
Hay methodology, a new grading education. Ms. Abia is a differently-
Divestment structure was designed, and existing abled girl ranked among the top
Pursuant to the GoP’s decision to employees were aligned with 100 most inspirational women
bring in SOEs as local investors in the new structure based on their shortlisted by BBC globally.
the Reko Diq project, the Company respective job sizes.
has decided to divest its entire 20% In addition to discharging its
equity interest in National Resources CORPORATE SOCIAL contractual and statutory
(Private) Limited, for which approvals RESPONSIBILITY (CSR) obligations, the Company voluntarily
are in process. During the FY 2022, the focus committed itself to social
was on the provision of quality investment projects across Pakistan.
ORGANIZATION AND CULTURE education, health and clean drinking Some of the major CSR initiatives
The Company will continue to water to the people living in the supported by the Company during
develop its human resource capital, areas of operations, especially in the year include: MPCL-IBA Sukkur
bring-in new talent and develop the new blocks. Scholarship Program, Sarbuland
technical skills of all staff in line with Micro Loans Scheme, Roshan
the best international practices par Mandatory Social Welfare Ehd Solarization Program for
excellence. Various initiatives in this Obligations: The Company underprivileged communities, Mari
regard are underway. discharged its mandatory social Mobile Dastarkhawan, Distribution
welfare obligations by depositing of dry ration bags and Ramadan
A scorecard based pay-for- the social welfare obligations into packages, support for the victims of
performance system has been joint bank accounts maintained with Murree snowfall incident, Miyawaki
implemented for all tiers of the respective District Coordination forestation at Mari Field and tree
management to improve employees’ Officers. plantation drives at different
efficiency and productivity. With locations, Light & Sound Show at
the help of roll-out partners, the Voluntary CSR: MPCL has Pakistan Monument on August
job descriptions were re-designed, appointed Ms. Abia Akram as its 14, 2021, 1st MPCL Azadi Hockey
job evaluations were conducted on first CSR Ambassador for inclusive Tournament in Rawalpindi, and
Directors' Report
financial assistance to a number of enterprise-wide risk management Due to its strategic position in the
charities for social causes. methodology, in line with ISO national economy, the oil and gas
31000:2018, to ensure a proactive, remains a highly regulated sector,
INTERNAL CONTROL SYSTEM adequate and integrated approach making it vulnerable to changes
The Board has set up an effective to risk management. in government regulations and
Internal Audit function, headed by policies. There were no significant
Chief Internal Audit and staffed A dedicated ERM department changes during the year with
with qualified professionals, which centrally coordinates risk respect to petroleum related
functionally reports to the Board’s management activities, ensures policies and regulations and thus
Audit Committee. smooth and streamlined adoption stability prevailed in this area.
of ERM practices across the
Detailed Management System organisation, and provides risk- INDUSTRIAL RELATIONS
Procedures are in place to ensure related advice, guidance and The Company is committed to
effective and efficient operations. support to the departments. provide a healthy work environment
All major policies are approved by to all its employees. It maintains
the Board and reviewed periodically. Principal Risks and Uncertainties cordial relations with the Collective
The SAP ERP solution has in-built The Company’s internal risks are Bargaining Agent that represents
authorization and other controls, mostly within the tolerable limits its unionized staff, and endeavors
which augment the overall control as these have been adequately to protect the workers’ interests,
environment. A Whistleblowing mitigated through effective controls. improve their economic condition
Policy is in place to address any On the other hand, the external and resolve their issues.
malpractices at workplace. risks, being uncontrollable in nature,
form a significant portion of the The Company has revamped its
Based on the work performed by Company’s emerging risk inventory. graduate trainee program SEED
the internal and external auditors, (Skill Enhancement & Employee
and the reviews conducted by the Major risks and uncertainties Development), and inducted young
relevant Board Committees, the in recent times have emanated graduates from top universities
Board is of the opinion that the primarily from the challenging across Pakistan to hone their
Company’s internal controls are security situation, Country’s macro- professional skills. To make the
sound in design and were effectively economic troubles, and lingering program more inclusive, 24% female
implemented and monitored during effects of COVID-19 on the supply engineers were inducted in the
the FY 2022. chain. Adequate controls are SEED program 2022.
employed to mitigate the identified
ENTERPRISE RISK MANAGEMENT risks. The residual exposure of INFORMATION TECHNOLOGY
In order to enable the Board in the principal risks is actively The IT governance is an integral
discharging its responsibilities monitored and reported in line with part of the Company’s overall
relating to the governance of risks, the approved risk management governance framework and
the Company has adopted an framework. demonstrates its ability to create
SEED 2022 Programme Participants with MPCL Team

value using IT infrastructure. The strategies. DRP is periodically tested and improved to help enhance
Company keeps cyber security the efficacy of recovery procedures and ensure improvement of the
and various elements of its IT infrastructure readiness to minimize system down-time in disaster
infrastructure aligned with each situations.
other.
CORPORATE GOVERNANCE
The focus of the Company is on
Board structure
implementation of automated
MPCL has a highly effective Board, having an appropriate mix of core
systems and digital transformation
competencies and diversity of backgrounds, skills, knowledge and
initiatives. This approach provides
experience. The Board comprises seven elected directors and four nominee
greater integration amongst cross-
directors (two each representing Government of Pakistan and OGDCL).
functional teams to induce effective
Current composition of the Board is as follows:
planning, coordination and decision-
making during various E&P-related S.
activities. No Director Category
Representing Fauji Foundation

The Company uses industry leading
1. Mr. Waqar Ahmed Malik Non-executive director
G&G interpretation, reservoir
2. Dr. Nadeem Inayat Non-executive director
modeling and corporate risk/
3. Maj Gen Ahmad Mahmood Hayat (Retd) Non-executive director
prospect assessment software suites
4. Mr. Faheem Haider Executive director
developed by renowned companies.
Representing Government of Pakistan

In addition to the available systems,
the Company has initiated an 5. Mr. Ali Raza Bhutta Non-executive director
Enterprise Data Management 6. Mr. Abdul Rasheed Jokhio Non-executive director
and Analytics project for data-
driven decisions. Various Business Representing OGDCL
Intelligence dashboards have been 7. Syed Khalid Siraj Subhani Non-executive director
developed to make the analytical 8. Mr. Ahmed Hayat Lak Non-executive director
data available to the management
for decision-making. Representing General Public
9. Mr. Adnan Afridi Independent, non-executive director
The Company’s Disaster Recovery 10. Mr. Abid Hasan Independent, non-executive director
Plan (DRP) provides a structured 11. Ms. Seema Adil Independent, non-executive director
approach to respond to unexpected
Male Directors: 10
incidents that may threaten the
Female Director: 01
Company’s IT infrastructure.
Priorities and recovery time
objectives for critical systems Positions of Chairman of the Board and CEO are
have been developed in the light Held by Two Different Individuals
of business impact analysis with Mr. Waqar Ahmed Malik is the Chairman of the Board, while Mr. Faheem
consistent immutable back-up Haider is the Managing Director/CEO of the Company.
Directors' Report
The names of the persons who, at any time during the financial year,
were directors of the company
1) Maj Gen Naseer Ali Khan (Retd)

2) Syed Bakhtiyar Kazmi
3) Dr. Arshad Mehmood
4) Mr. Haroon-ur-Rafiq
5) Mr. Shahid Salim Khan
6) Ms. Ayla Majid
Committees of the Board of Directors

The Board has constituted four committees to assist the Board in its
operations. These committees consider important matters relating to their
respective domains in depth and present their recommendations to the
Board for consideration and final decision.
Audit Committee:
Audit Committee of the Board currently comprises of the following
directors:
Mr. Abid Hasan Chairman (independent,

non-executive director)
Dr. Nadeem Inayat Member
Mr. Ali Raza Bhutta Member
Mr. Ahmed Hayat Lak Member
Mr. Adnan Afridi Member
HR and Remuneration Committee

HR and Remuneration Committee of the Board currently comprises of the
following directors:
Mr. Adnan Afridi Chairman (independent,

non-executive director)
Maj Gen Ahmad Mahmood Hayat (Retd) Member
Mr. Abid Hasan Member
Technical Committee:
Technical Committee of the Board currently comprises of the following
directors:
Maj Gen Ahmad Mahmood Hayat (Retd) Chairman

Syed Khalid Siraj Subhani Member
Ms. Seema Adil Member
Investment Committee No fee is paid to the Non-Executive

Investment Committee of the Board currently comprises of the following Directors for attending General
directors: Meetings of the Company. Further,
they are not entitled to receive
Director Designation any bonuses and post-retirement
benefits.
Dr. Nadeem Inayat Chairman
Maj Gen Ahmad Mahmood Hayat (Retd) Member There is no stock option scheme in
Syed Khalid Siraj Subhani Member place for any category of directors.
Ms. Seema Adil Member Details of remuneration paid to
executive and non-executive
Annual evaluation of the performance of the board, board’s directors during the year are given
committees and individual directors in note 36 of the attached financial
The Board has decided to hire the services of Pakistan Institute of Corporate statements.
Governance (PICG) to carry out the evaluation for the FY 2022.
Pattern of shareholding
PICG is the premier governance institute in Pakistan, promoting good A statement showing the pattern of
corporate governance practices and is involved in training and education, shareholding as at June 30, 2022 is
undertaking research, publishing guidelines and other resource material. attached in the Annual Report.
PICG has also developed a specialized mechanism for conducting the
aforementioned evaluation. CODE OF CORPORATE
GOVERNANCE
The evaluation was in progress and once completed, the PICG will submit The Company proactively
its evaluation report to the Board’s HR&R Committee, which will present the undertakes to achieve full
report along with its recommendations to the Board. compliance with the Listed
Companies (Code of Corporate
Directors’ remuneration policy Governance) Regulations, 2019,
In compliance with Clause 16 of the Listed Companies (Code of Corporate issued by the SECP. The Statement
Governance) Regulations, 2019, a formal Directors’ Remuneration Policy is in of Compliance by the Board of
place. Directors is reviewed by the
Statutory Auditors and their Review
Executive Director: The Managing Director/ Chief Executive Officer is the Report to the Members is included
only executive director on the Board. He is entitled to salary and other in the Annual Report every year.
benefits as per his employment contract approved by the Board and
Company Policies. No fee is paid to the Managing Director to attend Board, Directors’ Compliance Statement
Board Committees and general meetings. The Directors of the Company
hereby confirm the following:
Non-Executive Director: Non-executive directors are entitled to receive a
fixed fee for attending Board and Board Committee meetings. The fee is in a) The financial statements
line with the approved policy. When on Company’s business, all directors are prepared by the management
also entitled to allowances as per approved Company Policy. present fairly the Company’s
Directors' Report
DIVIDEND
During the year, the Company paid
final cash dividend of Rs 75 per
share (750%) for the year ended
June 30, 2021, and also paid an
interim cash dividend of Rs 62 per
share (620%) for the year ended
June 30, 2022.
Further, the Board of Directors in

its meeting held on August 4, 2022,
has proposed final cash dividend of
Rs 62 per share (620%) for the year
ended June 30, 2022, for approval
of the shareholders in the Annual
General Meeting.
FUTURE OUTLOOK OF THE

COMPANY
Exploration Team - Head Office The Company is steadily expanding
its operations and building its
state of affairs, the result of its operations, cash flows and changes in human, technical, financial and
equity. social capitals to fuel and sustain
its growth. The Company intends to
b) Proper books of account of the Company have been maintained. enhance its production and increase
its existing exploration acreage both
c) There are no significant doubts regarding the Company’s ability to
locally as well as internationally.
continue as going concern.
d) Appropriate accounting policies have been consistently applied in The Company will remain focused
preparation of financial statements, except for changes as detailed on HRL plateau extension and
in financial statements, and accounting estimates are based on enhancement of production from
reasonable and prudent judgment. deeper reservoirs of Mari Field. The
Company also plans to carry out
e) International Financial Reporting Standards, as applicable in Pakistan,
exploration activities in existing and
have been followed in preparation of the financial statements.
prospective blocks to supplement
f) Directors are responsible and have adequately ensured that the system production from Mari Field by
of internal controls including financial controls is sound in design and discovering more hydrocarbon
has been effectively implemented and monitored. resources. Infrastructure-led
investments in the exploration and
g) There has been no material departure from the best practices of development projects in other fields
corporate governance, as detailed in the Listed Companies (Code of will also add significant value to the
Corporate Governance) Regulations, 2019. Company.
h) Key operating and financial data of the last ten years is annexed.
All efforts are underway to expedite
i) Value of investments including bank deposits and accrued income of early gas production from Bannu
various funds as at June 30, 2021, based on their respective audited West discovery and safe completion
accounts, is as under: of Sachal Gas Processing Complex.
Contributory provident fund Rs 1,336 million
In total, nine exploratory, three
Management staff gratuity fund Rs 3,115 million
appraisal, four development and
Non-management staff gratuity fund Rs 1,077 million
three work-over wells are planned
j) Information regarding outstanding taxes and levies is disclosed in the in FY 2023 in various operated and
notes to the financial statements. non-operated blocks.
The Company is pursuing with the

GoP for grant of ELs and signing
of PCAs for newly-awarded five
blocks, so that exploration activities
can be commenced without any
delay. The Company is expediting
its exploratory efforts in Sharan and
Nareli Block that were won in the
bidding round held in 2021.
The Services Division of the

Company is enhancing its capacity
to cater to the needs of the
Company, its Joint Venture Partners
and 3rd parties that will add value
to the Company and save foreign
exchange for the Country.
The Company is continuously

evaluating farm-in opportunities in
exploration as well as producing Skill Enhancement and Employee Development Program - Head Office, Islamabad
assets with upside potential. On
internationalization front, the appointment of M/s A.F. Ferguson & Co., Chartered Accountants as external
award of offshore Block-5 in Abu auditors of the Company for the FY 2023. The recommendation of the Audit
Dhabi will augment the Company’s Committee was endorsed by the Board of Directors and the matter will be
reserve-led growth strategy. tabled at the upcoming AGM.
The Company intends to enhance ACKNOWLEDGEMENT

its social impact through stronger The Board of Directors would like to express its appreciation for the efforts
and sustainable CSR footprint and dedication of all employees which resulted in uninterrupted production
across Pakistan by adopting the and supply of hydrocarbons to its customers.
triple bottom-line approach of
developing people, securing profits The Board also wishes to express its appreciation for continued assistance
and saving the planet. and cooperation received from Local Administrations, Provincial Governments,
various departments of Federal Government especially the Ministry of
The Company will continue Energy (Petroleum Division), Ministry of Finance, OGRA, DGs of (Petroleum
the implementation of its HSE Concessions, Oil and Gas), Fauji Foundation, OGDCL, FBR and Law
management system that are Enforcement Agencies, its suppliers and other stakeholders.
compliant with international
standards for its seismic, drilling
and production activities. For and on behalf of the Board
EXTERNAL AUDITORS
The present auditors, M/s A.F.
Ferguson & Co., Chartered
Accountants, will retire at the
conclusion of the upcoming AGM
and have offered themselves for
re-appointment as external auditors Faheem Haider Waqar Ahmed Malik (SI)
of the Company. Managing Director/CEO Chairman
The Audit Committee considered Islamabad

this matter and recommended August 04, 2022
MPCL's Operated Blocks

and Development & Production (D&P) Leases
MARI SUJAWAL SUJJAL AQEEQ

(D&P Lease) (D&P Lease) (D&P Lease) (D&P Lease)
100% MPCL 100% MPCL 100% MPCL 100% MPCL
ZARGHUN SOUTH KALABAGH HALINI NARELI BLOCK

(D&P Lease) (D&P Lease) (D&P Lease)

40% l SPUD 40% l MOL 40% l MOL 32% l POL
17.5% l GHPL 29% l SPUD
7.5% l ALHAJ
HANNA BLOCK SUKKUR BLOCK SUJAWAL BLOCK WALI WEST BLOCK PESHAWAR EAST BLOCK
100% MPCL 100% MPCL 100% MPCL 95% MPCL 98.19% l MPCL
2.50% l GHPL 1.81% l KPOGCL
2.50% l KPOGCL
MACH BLOCK DADHAR BLOCK BLOCK 28 GHAURI BLOCK KARAK BLOCK
40% MPCL 40% MPCL 95% MPCL 65% MPCL 60% MPCL
30% l PPL 30% l PPL 05% l OGDCL 35% l PPL 40% l MOL
30% l UEP 30% l UEP
HARNAI BLOCK ZIARAT BLOCK TAUNG BLOCK BANNU WEST BLOCK SHARAN BLOCK
60% MPCL 60% MPCL 60% MPCL 55% MPCL 60% MPCL
40% l PPL EUROPE 40% l PPL EUROPE 40% l POL 35% l OGDCL 40% l OGDCL
10% l ZPCPL
MPCL's Non-Operated Blocks
and D&P Leases
ADAM X ADAM WEST BASHAR FAZL

Operator: PPL (D&P Lease) Operator: PPL (D&P Lease) Operator: PPL (D&P Lease) Operator: PPL (D&P Lease)

65% l PPL 65% l PPL 65% l PPL 65% l PPL
BENARI TOGH & TOGH BALA HALA BLOCK KOHLU BLOCK KOHAT BLOCK
Operator: PPL (D&P Lease) (D&P Lease) Operator: PPL Operator: OGDCL Operator: OGDCL
32% MPCL 50% OGDCL 35% MPCL 30% MPCL 33.33% MPCL
63% l PPL 33.33% l MPCL 65% l PPL 30% l OPL 16.67% l SEL
2.5% l GHPL 16.67% l SEL 40% l OGDCL 50% l OGDCL
2.5% l SEHCL
KALCHAS BLOCK
BELA WEST BLOCK SHAH BANDAR BLOCK KILLA SAIFULLAH BLOCK Operator: OGDCL
Operator: PPL Operator: PPL Operator: OGDCL
50% MPCL
39% MPCL 32% MPCL 40% MPCL 50% l OGDCL
58.5% l PPL 63% l PPL 60% l OGDCL
2.5% l GHPL 2.5% l GHPL
2.5% l SEHCL
NORTH DHURNAL BLOCK OFFSHORE-5 BLOCK (ABU DHABI) MARGALA BLOCK KALAT WEST
Operator: POL Operator: PPL Operator: MOL Operator: PPL
60% POL 25% PPL 40% MOL 50% PPL

40% l MPCL 25% l MPCL 30% l MPCL 50% l MPCL
25% l OGDCL 30% l POL
25% l GHPL
MEERANPUR SUI NORTH

Operator: UEPL Operator: PPL
50% UEP 50% PPL

50% l MPCL 50% l MPCL
Geographical Presence
MPCL Concessions and Working Interest
BLOCK- PESHAWAR EAST

OPERATOR: MPCL
MPCL 98.19%
KPOGCL 1.81%
BLOCK- NORTH DHURNAL

OPERATOR: POL
D&PL- TOGH & TOGH BALA POL 60%
BLOCK- MARGALA
OPERATOR: MOL *
OPERATOR: OGDCL MPCL 40%
MOL 40%
OGDCL 50%
MPCL 30%
BLOCK- KARAK MPCL 33.33%
POL 30%
OPERATOR: MPCL SEL 16.67%
MPCL 60%
MOL 40% BLOCK- KOHAT
BLOCK- KALAT WEST OPERATOR: OGDCL
OPERATOR: PPL OGDCL 50% TAJIKISTAN
C
MPCL 50% MPCL 33.33% H
PPL 50%
BLOCK- WALI WEST SEL 16.67% I
GI N
OPERATOR: MPCL LG
IT A
MPCL 95.0% -B
GILGIT AL
GHPL 2.5% TI
BLOCK- BANNU WEST ST
AN
A
KPOGCL 2.5%
HW
OPERATOR: MPCL Karakoram Pass
BLOCK- MACH MPCL 55%

BLOCK- HARNAI
NK
OPERATOR: MPCL OGDCL 35%
OPERATOR: MPCL N
TU
MPCL 40% ZPCPL 10% MUZAFFARABAD
MPCL 60%
KH
A SRINAGAR
PPL 30% PPL Europe 40% INDIAN ILLEGALLY OCCUPIED JAMMU & KASHMIR
UEP 30%
BLOCK- SHARAN T PA
ISLAMABAD
(DISPUTED TERRITORY - FINAL STATUS TO BE DECIDED
IN LINE WITH RELEVANT UNSC RESOLUTIONS)
D&PL- ZARGHUN SOUTH OPERATOR: MPCL S

PESHAWAR
ER
OPERATOR: MPCL MPCL 60%

BLOCK- DADHAR MPCL 35.00%
I
YB
OGDCL 40%
OPERATOR: MPCL SPUD 40.00% N D&PL- KALABAGH
KH
MPCL 40% Al-Haj 7.50% OPERATOR: MPCL

A
PPL 30% GHPL 17.50% B MPCL 60%
UEP 30% H
BLOCK- HANNA MOL 40%
A
G
OPERATOR: MPCL QUETTA D&PL- HALINI
BLOCK- ZIARAT
J
MPCL 100% F
OPERATOR: MPCL
OPERATOR: MPCL A N MPCL 60%
N
MPCL 60% MOL 40%

A
PPL Europe 40%
BLOCK- KILLA SAIFULLAH
U
T
OPERATOR: OGDCL
I
P
S
OGDCL 60%
BLOCK- TAUNG
D
I MPCL 40%
OPERATOR: MPCL BLOCK- NARELI
N
H
MPCL 60% OPERATOR: MPCL
BLOCK- KALCHAS
I
D&PL- MARI MPCL 39%

A
POL 40% C
OPERATOR: OGDCL
OPERATOR: MPCL POL 32%
O OGDCL 50%
BLOCK- BELA WEST MPCL 100% SPUD ENERGY 29%
R
MPCL 50%
OPERATOR: PPL L
BLOCK- KOHLU BLOCK- MEERANPUR
I
PPL 58.5%
MPCL 39%
A OPERATOR: OGDCL BLOCK- SUI NORTH OPERATOR: UEP
OGDCL 40% OPERATOR: PPL UEP 50%
GHPL 2.5% B
MPCL 30% PPL 50% MPCL 50%
OPL 30% MPCL 50%
S I N D H BLOCK- 28
BLOCK- SUKKUR OPERATOR: MPCL
D&PL- SUJJAL BLOCK- HALA OPERATOR: MPCL MPCL 95%
OPERATOR: MPCL
Astola Island OPERATOR: PPL MPCL 100% OGDCL 05%
MPCL 100%
KARACHI PPL 65%
MPCL 35%
Churna Island
D&PL- ADAM WEST
BLOCK- SHAH BANDAR OPERATOR: PPL
OPERATOR: PPL D&PL- FAZL D&PL- ADAM-X
OPERATOR: PPL PPL 65%
PPL 63.0% OPERATOR: PPL
A R A B I A N S E A PPL 65% MPCL 35%
MPCL 32.0% PPL: 65%
GHPL 2.5% MPCL 35% MPCL 35%
SEHCL 2.5% D&PL- BASHAR
D&PL- BENARI
D&PL- AQEEQ D&PL- SUJAWAL OPERATOR: PPL
OPERATOR: PPL
OPERATOR: MPCL OPERATOR: MPCL PPL 63.0%
BLOCK- SUJAWAL PPL 65%
MPCL 100% MPCL 100% OPERATOR: MPCL MPCL 35%
MPCL 32.0%
MPCL 100%
GHPL 2.5%
SEHCL 2.5%
BLOCK - ABU DHABI OFFSHORE BLOCK-5
OPERATOR: PPL
PPL 25%
MPCL 25%
OGDCL 25% LEGEND
GHPL 25% Won in bid round 2022
l OPERATOR E.L’s = 02
l NON - OPERATED E.L’s = 03
l OPERATED E.L’s
l OPERATED D&PL’s
l NON - OPERATED E.L’s
l NON - OPERATED D&PL’s
Statement of Compliance
with Listed Companies (Code of Corporate Governance) Regulations, 2019
Mari Petroleum Company limited

For the year ended June 30, 2022
The Company has complied with the requirements of the Regulations in the following manner:-
1. The total number of Directors is eleven as per the following detail:

a. Male: 10
b. Female: 01
2. The composition of the Board is as follows:

As at June 30, 2022:
Category Names
Independent Directors* (Excluding Female Director) Mr. Adnan Afridi

Mr. Abid Hasan
Executive Director Mr. Faheem Haider
Non-executive Directors Mr. Waqar Ahmed Malik
Dr. Nadeem Inayat
Maj. Gen Ahmad Mahmood Hayat (Retd)
Mr. Ali Raza Bhutta
Mr. Abdul Rasheed Jokhio
Syed Khalid Siraj Subhani
Mr. Ahmed Hayat Lak
Female Director (Independent Director) Ms. Seema Adil
*The Company has elected 3 independent directors, while the fraction of 0.67 was not rounded up as one. The Participation and
Shareholders Agreement (PSA) among the principal shareholders and the Articles of Association (AoA) of the Company require that the
representation on the Board shall be proportionate to, as closely as possible, the shareholding of the sponsors. Currently, 4 out of 11
directors are nominees of the Government of Pakistan and OGDCL,while Fauji Foundation has 4 directors.
3. The directors have confirmed that none of them is serving as a director on more than seven listed companies,
including MPCL;
4. The Company has prepared a code of conduct and has ensured that appropriate steps have been taken to
disseminate it throughout the Company along with its supporting policies and procedures;
5. The Board has developed a Vision / Mission Statement, overall corporate strategy and significant policies
of the Company. The Board has ensured that complete record of particulars of the significant policies along
with their date of approval or updating is maintained by the Company;
6. All the powers of the Board have been duly exercised and decisions on relevant matters have been taken
by the Board! shareholders as empowered by the relevant provisions of the Act and the Regulations;
7. The meetings of the Board were presided over by the Chairman and, in his absence, by a director elected
by the Board for this purpose. The Board has complied with the requirements of the Act and the Regulations
with respect to frequency, recording and circulating minutes of meetings of the Board;
8. The Board has a formal policy and transparent procedures for determining the remuneration of directors in
accordance with the Act and the Regulations;
9. The following Directors were certified under SECP approved Directors' Training Program as at June 30, 2022:
S# Directors
1. Mr. Waqar Ahmed Malik

2. Dr. Nadeem Inayat
3. Maj Gen Ahmad Mahmood Hayat (Retd)
4. Mr. Faheem Haider
5. Mr. Ali Raza Bhutta
6. Mr. Abdul Rasheed Jokhio
7. Syed Khalid Siraj Subhani
8. Mr. Ahmed Hayat Lak
9. Mr. Adnan Afridi
10. Mr. Abid Hasan
The directors training program for one newly elected director will be arranged in due course.
A Directors' Training Program from SECP approved institution was arranged during the year, which was
attended by the following:
Directors:
- Mr. Haroon-ur- Rafique - Non-Executive Director
Executives:
- Mr. Nabeel Rasheed - Chief Financial Officer
- Ms. Fauzia Ahmad - Chief Human Resource Officer
10. The Board has approved appointment of chief financial officer, company secretary and head of internal
audit, including their remuneration and terms and conditions of employment and complied with relevant
requirements of the Regulations;
11. Chief Financial Officer and the Chief Executive Officer duly endorsed the financial statements before
approval of the Board;
12. The Board has formed the following committees comprising of the members as given below:
a) Audit Committee
Mr. Abid Hasan Chairman (independent Director)

Dr. Nadeem Inayat Member
Mr. Ali Raza Bhutta Member
Statement of Compliance with the Code of Corporate Governance
b) HR and Remuneration Committee

Mr. Adnan Afridi Chairman (Independent Director)

Mr. Abid Hasan Member
c) Investment Committee
Dr. Nadeem Inayat Chairman

d) Technical Committee
Maj Gen Ahmad Mahmood Hayat (Retd) Chairman

13. The terms of reference of the aforesaid committees have been formed, documented and advised to the
committees for compliance;
14. The frequency of meetings (quarterly / half / yearly) of the committees was as given below:
Committee Frequency of meeting
a) Audit Committee: At least Quarterly/Required basis

b) HR and Remuneration Committee: At least once in a year/Required basis
c) Investment Committee: Required basis
d) Technical Committee: Required basis
15. The Board has set up an effective internal audit function staffed with personnel who are considered
suitably qualified and experienced for the purpose and are conversant with the policies and procedures of
the Company;
16. The statutory auditors of the Company have confirmed that they have been given a satisfactory rating
under the Quality Control Review program of the Institute of Chartered Accountants of Pakistan and
registered with Audit Oversight Board of Pakistan, that they and all their partners are in compliance with
International Federation of Accountants (IFAC) guidelines on code of ethics as adopted by the Institute of
Chartered Accountants of Pakistan and that they and the partners of the firm involved in the audit are not a
close relative (spouse, parent, dependent and non-dependent children) of the chief executive officer, chief
financial officer, head of internal audit, company secretary or director of the Company;
17. The statutory auditors or the persons associated with them have not been appointed to provide other
services except in accordance with the Act, the Regulations or any other regulatory requirement and the
Auditors have confirmed that they have observed IFAC guidelines in this regard;
18. We confirm that all requirements of Regulations 3, 6, 7, 8, 27, 32, 33 and 36 of the Regulations have been
complied with.
19. Explanations pertaining to the regulations other than 3, 6, 7, 8, 27, 32, 33 and 36 are below:
S.No Requirement Explanation Reg. No.
i. Constitution of Nomination The responsibilities as prescribed for the Nomination 29

Committee Committee are being taken care of at the Board level as
and when needed. Therefore, a separate committee is not
currently considered to be necessary.
ii. Constitution of Risk The functions of the risk management committee are 30
Management Committee currently performed by the Audit Committee and are
included in its ToRs. Hence a separate risk management
committee is currently not needed.
Waqar Ahmed Malik (SI) Faheem Haider

Chairman Chief Executive Officer
August 04, 2022
Pipe Rack - Zarghn South, Balochistan

Financial Statementsfor the year ended June 30, 2022
Independent Auditors’ Report to the Members 182

Statement of Financial Position 188
Statement of Profit or Loss 190
Statement of Comprehensive Income 191
Statement of Changes in Equity 192
Statement of Cash Flows 193
Notes to and Forming Part of the Financial Statements 194

As at June 30, 2022
2022 2021
Note (Rupees in thousand)
SHARE CAPITAL AND RESERVES

Share capital 4 1,334,025 1,334,025
Other reserves 5 15,711,988 15,190,001
Unappropriated profit 113,812,754 99,009,539
130,858,767 115,533,565
NON CURRENT LIABILITIES

Long term financing 6 724,126 -
Deferred liabilities 7 15,544,293 11,171,723
16,268,419 11,171,723
CURRENT LIABILITIES
Trade and other payables 8 23,299,450 17,256,803
Current maturity of long term financing 27,981 -
Unclaimed dividend 9 265,992 118,875
Provision for income tax 14,419,416 6,305,167
38,012,839 23,680,845
CONTINGENCIES AND COMMITMENTS 10
185,140,025 150,386,133
The annexed notes 1 to 41 form an integral part of these financial statements.
Nabeel Rasheed Faheem Haider

Chief Financial Officer Managing Director / CEO
2022 2021
ASSETS
NON CURRENT ASSETS

Property, plant and equipment 11 60,441,427 37,672,536
Development and production assets 12 17,733,482 16,278,235
Exploration and evaluation assets 13 14,538,766 7,386,197
Long term investments 14 3,185,145 1,161,018
Long term loans and advances 15 43,969 34,053
Long term deposits and prepayments 16 124,756 182,274
Deferred income tax asset 17 3,057,644 2,209,320
99,125,189 64,923,633
CURRENT ASSETS
Stores and spares 18 3,424,159 2,866,855
Trade debts 19 32,359,298 28,046,706
Short term loans and advances 20 7,792,601 5,470,861
Short term prepayments 135,672 144,920
Other receivables 676,270 187,311
Current portion of long term investments 41,068 39,831
Short term investments 21 4,995,065 40,782,256
Interest accrued 29,853 100,635
Cash and bank balances 22 36,496,060 7,823,125
85,950,046 85,462,500
Assets classified as held for sale 14 64,790 -
185,140,025 150,386,133
Abid Hasan Waqar Ahmed Malik

Director Chairman

for the year ended June 30, 2022
2022 2021
Gross sales 108,969,625 82,692,664
General sales tax (11,788,450) (7,668,767)

Excise duty (2,046,698) (2,005,626)
(13,835,148) (9,674,393)
Net sales 23 95,134,477 73,018,271
Royalty (11,999,913) (9,315,126)

Operating and administrative expenses 24 (17,402,533) (15,039,680)
Exploration and prospecting expenditure 25 (10,931,573) (4,543,689)
Finance cost 26 (979,809) (1,310,476)
Other charges 27 (3,622,588) (3,082,462)
(44,936,416) (33,291,433)
50,198,061 39,726,838
Other income 48,235 311,971
Finance income 28 4,483,085 3,940,536
Share of loss in associate 14.3 (2,613,070) (47,982)
Profit before taxation 52,116,311 43,931,363
Provision for income tax 29 (19,053,300) (12,486,454)
Profit for the year 33,063,011 31,444,909
Earnings per share - basic and diluted
Earnings per ordinary share (Rupees) 30 247.84 235.71
Nabeel Rasheed Faheem Haider Abid Hasan Waqar Ahmed Malik

Chief Financial Officer Managing Director / CEO Director Chairman
Statement of Comprehensive Income
2022 2021
Profit for the year 33,063,011 31,444,909
Other comprehensive income:

Items that will not be subsequently reclassified to
statement of profit or loss:
Remeasurement gains of defined benefit plans 32 23,761 23,399
Income tax effect related to remeasurement of
defined benefit plans
- Current tax credit / (charge) 2,851 (14,911)
- Deferred tax (charge) / credit (10,265) 2,432
16,347 10,920
Items that will be subsequently reclassified to

statement of profit or loss:
Effect of translation of investment in a foreign
associated company 521,987 -
Total comprehensive income for the year 33,601,345 31,455,829

Statement of Changes in Equity

Other Reserves
Undistributed Capital Foreign
percentage redemption Self currency
Share return reserve insurance translation Unappropriated
capital reserve fund reserve reserve profit Total
Balance as at July 1, 2020 1,334,025 477,899 10,590,001 3,600,000 - 77,147,181 93,149,106
Total comprehensive income for the year:

Profit for the year - - - - - 31,444,909 31,444,909
Other comprehensive income - - - - - 10,920 10,920
- - - - - 31,455,829 31,455,829
Final cash dividend for the year ended

June 30, 2020 @ Rs 2.00 per share * - (266,805) - - - - (266,805)
First interim cash dividend for the year ended
June 30, 2021 @ Rs 6.00 per share * - (188,891) - - - (611,524) (800,415)
Transfer from undistributed percentage return
reserve to unappropriated profit - (22,203) - - - 22,203 -
Second interim cash dividend for the year ended
June 30, 2021 @ Rs 60.00 per share * - - - - - (8,004,150) (8,004,150)
Transfer from unappropriated profit to self
insurance reserve - - - 1,000,000 - (1,000,000) -
Balance as at June 30, 2021 1,334,025 - 10,590,001 4,600,000 - 99,009,539 115,533,565
Total comprehensive income for the year:

Profit for the year - - - - - 33,063,011 33,063,011
Other comprehensive income - - - - 521,987 16,347 538,334
- - - - 521,987 33,079,358 33,601,345
Final cash dividend for the year ended

June 30, 2021 @ Rs 75.00 per share * - - - - - (10,005,188) (10,005,188)
Interim cash dividend for the year ended
June 30, 2022 @ Rs 62.00 per share * - - - - - (8,270,955) (8,270,955)
Balance as at June 30, 2022 1,334,025 - 10,590,001 4,600,000 521,987 113,812,754 130,858,767
* Distribution to owners - recorded directly in equity

Statement of Cash Flows
2022 2021
Cash flows from operating activities

Cash receipts from customers 136,602,088 104,653,433
Cash paid to the Government for Government levies (62,501,082) (46,949,087)
Cash paid to suppliers, employees and others (12,906,173) (12,754,214)
Income tax paid (11,794,789) (14,977,114)
Cash generated from operating activities 49,400,044 29,973,018
Cash flows from investing activities

Property, plant and equipment (24,772,074) (17,842,585)
Development and production assets (1,986,030) (5,694,829)
Exploration and evaluation assets (12,699,851) (2,657,742)
Proceeds from disposal of property, plant and equipment 15,248 702,813
Investment in associate (4,180,000) (209,000)
Investment in Term Finance Certificates - (1,000,000)
Dividend from mutual funds 498,468 169,889
Interest received 2,112,086 3,666,650
Cash utilized in investing activities (41,012,153) (22,864,804)
Cash flows from financing activities

Proceeds from long term financing 1,000,000 -
Redemption of preference shares - (3,490)
Finance cost paid (16,964) (1,455)
Dividend paid (18,129,026) (8,996,521)
Cash utilized in financing activities (17,145,990) (9,001,466)
Decrease in cash and cash equivalents (8,758,099) (1,893,252)
Cash and cash equivalents at beginning of year 48,605,381 50,334,404
Effect of exchange rate changes 1,643,843 164,229
Cash and cash equivalents at end of year 31 41,491,125 48,605,381

Notes to and Forming Part of the Financial Statements

1. LEGAL STATUS AND OPERATIONS

1.1 Mari Petroleum Company Limited ("the Company") is a public limited company incorporated in Pakistan on
December 4, 1984 under the repealed Companies Ordinance, 1984 (replaced by the 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 sale of hydrocarbons. The registered office of the Company is situated
at 21 Mauve Area, 3rd Road, G-10/4, Islamabad.
1.2 Geographical location of blocks/fields is as under:
Block/Fields Location
Mari Field, Sujawal block, Sukkur block, Taung block,

Hala block, Shah Bandar block and Khetwaro block Sindh
Zarghun South Field, Kohlu block, Ziarat block, Harnai block,

Block 28, Bela West block, Killa Saifullah block, Nareli block,
Sharan block and Hanna block Balochistan
Bannu West block, Kohat block and Wali West block Khyber Pakhtunkhwa (KPK)
Ghauri block and North Dhurnal block Punjab
Karak block, Peshawar East block and Zindan block KPK and Punjab
Kalchas block Balochistan and Punjab
The Company's largest field is Mari Field which is located at Daharki, District Ghotki, Sindh.
1.3 Mari Wellhead Gas Pricing Agreement
1.3.1 Previously, gas price mechanism for Mari field was governed by Mari Gas Wellhead Price Agreement ("the
Agreement") dated December 22, 1985 between the President of Islamic Republic of Pakistan and the
Company. Effective July 1, 2014, the Agreement was replaced with revised Mari Wellhead Gas Price Agreement
dated July 29, 2015 ("Revised Agreement 2015") in line with the Economic Coordination Committee (ECC)
decision, whereby the wellhead gas pricing formula was replaced with a crude oil price linked formula, which
provides a discounted wellhead gas price. The Revised Agreement 2015 provided dividend distribution to be
continued for ten years upto June 30, 2024 in line with the previous cost plus formula, according to which the
shareholders were entitled to a minimum return of 30% per annum, net of all taxes, on shareholders' funds,
to be escalated in the event of increase in the Company's gas or equivalent oil production beyond the level
of 425 MMSCFD at the rate of 1%, net of all taxes, on shareholder's funds for each additional 20 MMSCFD of
gas or equivalent oil produced, prorated for part thereof on an annual basis, subject to a maximum of 45% per
annum.
1.3.2 Effective July 1, 2020, dividend distribution cap has been removed vide ECC decision in the meeting held on
February 3, 2021, which has also been ratified by the Federal Cabinet on February 9, 2021. Accordingly, the
Company is allowed to distribute dividend in accordance with provisions of the Companies Act 2017 and rules
made thereunder, without any lower or upper limit as mentioned in para 1.3.1. Subsequently, an Amendment
Agreement to Revised Agreement 2015 has been executed between the Government of Pakistan and the
Company on April 17, 2021, giving effect to the ECC decision.
2. BASIS OF PREPARATION
2.1 Statement of compliance

These financial statements have been prepared in accordance with the accounting and reporting standards
as applicable in Pakistan. The accounting and reporting standards as applicable in Pakistan comprise of
International Financial Reporting Standards (IFRS), issued by the International Accounting Standards Board
(IASB) as notified under the Companies Act, 2017 and provisions of and directives issued under the Companies
Act, 2017. Where the provisions of and directives issued under the Companies Act, 2017 differ from IFRS, the
provisions of and directives issued under the Companies Act, 2017 have been followed.
2.2 Basis of measurement

These financial statements have been prepared under the historical cost convention except as otherwise
disclosed.
2.3 Functional and presentation currency

These financial statements are presented in Pakistan Rupees (Rupees), which is the functional currency of the
Company. All figures are rounded off to the nearest thousands of Rupees.
2.4 Significant accounting judgements, estimates and assumptions

The preparation of these financial statements in conformity with the approved accounting and reporting
standards as applicable in Pakistan requires management to make judgements, estimates and assumptions
that affect the application of policies and reported amounts of assets and liabilities, income and expenses.
The estimates and associated assumptions are based on historical experience and other factors that are
believed to be reasonable under the circumstances, the results of which form the basis of making judgment
about carrying amounts of assets and liabilities that are not readily apparent from other sources. Actual
results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting
estimates are recognized in the period in which estimates are revised if the revision affects only that period,
or in the period of revision and future periods if the revision affects both current and future periods.
In the process of applying the Company's accounting policies, the management has made the following
estimates, assumptions and judgements which are significant to these financial statements:
a) Estimation of oil and gas reserves - note 3.8 and note 12

Oil and gas commercial reserves i.e. proved and probable developed reserves, are an important element in
calculation of amortization charge and for impairment testing of development and production assets of the
Company. Reserve estimates involve some degree of uncertainty, require the application of judgement and
are subject to future revision. Reserves are estimated by reference to available reservoir and well information,
including production and pressure trends for producing reservoirs and, in some cases, subject to definitional
limits, to similar data from other producing reservoirs. All reserve estimates are subject to revision, either
upward or downward, based on new information, such as from development, drilling and production activities
or from changes in economic factors, including contract terms or development plans.
b) Exploration and evaluation expenditure - note 3.7 and note 13

The Company’s accounting policy for exploration and evaluation expenditure results in certain items of
expenditure being capitalized for an area of interest where it is considered likely to be recoverable by future
exploration or sale or where the activities have not reached a stage which permits a reasonable assessment
of the existence of commercial reserves. This policy requires management to make certain estimates and
assumptions as to future events and circumstances, in particular whether an economically viable extraction
operation can be established. Any such estimates and assumptions may change as new information becomes
available. If, after having capitalized the expenditure under the policy, a judgement is made that recovery of
the expenditure is unlikely, the relevant capitalized amount is charged to the statement of profit or loss in the
period when such judgement is made.

c) Development and production expenditure - note 3.8 and note 12

Development and production activities commence after project sanctioning by the appropriate approving
authority. Judgement is applied by the management in determining whether a project is economically viable
before obtaining project sanction approval. In exercising this judgement, management is required to make
certain estimates and assumptions similar to those described above for capitalized exploration and evaluation
expenditure. Any such estimates and assumptions may change as new information becomes available. If,
after having commenced development activity, a judgement is made that a development and production
asset is impaired, the appropriate amount is charged to the statement of profit or loss in the period when
such judgement is made.
d) Provision for decommissioning cost - note 3.3 and note 7.1

Provision is recognized for the future decommissioning and restoration of oil and gas wells, production
facilities and pipelines at the end of their economic lives. The timing of recognition requires the application of
judgement to existing facts and circumstances, which can be subject to changes. Estimates of the amounts
of provision are based on current legal and constructive requirements, technology and price levels. Provision
is based on best current estimates, however, because actual outflows may differ from estimates due to
changes in laws, regulations, public expectations, technology, prices and conditions, and can take place many
years in the future, the carrying amount of provision is reviewed periodically and adjusted to take account of
significant changes.
e) Property, plant and equipment - note 3.5 and note 11

The Company reviews the appropriateness of useful lives, method of depreciation and residual values of
property, plant and equipment at each reporting date. Any change in the estimates may affect the carrying
amounts of respective items of property, plant and equipment with a corresponding effect on the depreciation
charge and impairment, if any.
f) Employee benefits - note 3.4 and note 32

Certain actuarial assumptions have been adopted as disclosed in note 32 to the financial statements for
determination of present value of defined benefit obligations and fair value of plan assets.
g) Income taxes - note 3.1 and note 29

In making the estimates of income taxes currently payable by the Company, the management takes into
account the income tax law applicable to the Company and guidance based on the decisions of appellate
authorities in the past. This involves judgement on the future tax treatment of certain transactions. Deferred
tax is recognized based on the expectation of the tax treatment of these transactions.
h) Measurement of the expected credit loss allowance - note 3.16 and note 33
The measurement of the Expected Credit Loss (“ECL”) allowance for financial assets measured at amortised
cost is an area that requires the use of complex models and significant assumptions about future economic
conditions and credit behavior (e.g. the likelihood of counter parties defaulting and the resulting losses).
Elements of the ECL models that are considered accounting judgments and estimates include various formulas
and choice of inputs, macroeconomic scenarios and economic inputs alongwith their effect on Probability of
Default (PDs), Exposure At Default (EADs) and Loss Given Default (LGDs).
As referred in note 2.6 to these financial statements, the Securities and Exchange Commission of Pakistan
(SECP) has deferred applicability of ECL model in respect of financial assets due from the Government of
Pakistan (GoP) till June 30, 2022. Accordingly, the Company reviews the recoverability of its financial assets
that are due directly / ultimately from GoP to assess whether there is any objective evidence of impairment
as per requirements of IAS 39 ‘Financial Instruments: Recognition and Measurement’ at each reporting date.
i) Stores and spares - note 3.10 and note 18

The Company reviews the stores and spares for possible impairment on a periodic basis, which may affect the
carrying amounts of the respective items of stores and spares with a corresponding effect on the provision.
j) Contingencies - note 3.20 and note 10

The assessment of the contingencies inherently involves the exercise of significant judgment as the outcome
of the future events cannot be predicted with certainty. The Company, based on the availability of the latest
information, estimates the value of contingent assets and liabilities, which may differ on the occurrence /
non-occurrence of the uncertain future event(s).
k) Joint arrangements - note 3.15

The Company participates in several joint arrangements. Judgment is required in order to determine their
classification as a joint venture where the Company has rights to the net assets of the arrangement or a joint
operation where the Company has rights to the assets and obligations for the liabilities of the arrangement.
In making this judgment, consideration is given to the legal form of the arrangement, the contractual terms
and conditions as well as other facts and circumstances.
2.5 Standards, amendments to published standards and interpretations that are not yet effective and
have not been early adopted by the Company
The following standards, amendments and interpretations are only effective for accounting periods, beginning
on or after the date mentioned against each of them.
- Amendments to IAS 1 and IFRS Practice Statement 2 Disclosure of Accounting Policies (effective for
annual reporting periods beginning on or after January 1, 2023). The amendments aim to help entities
provide accounting policy disclosures that are more useful by replacing the requirement for entities to
disclose their ‘significant’ accounting policies with a requirement to disclose their ‘material’ accounting
policies and adding guidance on how entities apply the concept of materiality in making decisions about
accounting policy disclosures.
- Amendment to IAS 1 ‘Presentation of Financial Statements' - Classification of Liabilities as Current or Non-

current (effective for annual reporting periods beginning on or after January 1, 2023). The amendments
provide more general approach to the classification of liabilities under IAS 1 based on the contractual
arrangements in place at the reporting date.
- Amendments to IAS 8 ‘Accounting Policies, Changes in Accounting Estimates and Errors’- Definition
of Accounting Estimates (effective for annual reporting periods beginning on or after January 1, 2023).
The amendments introduce a new definition for accounting estimates clarifying that they are monetary
amounts in the financial statements that are subject to measurement uncertainty. The amendments
also clarify the relationship between accounting policies and accounting estimates by specifying that a
company develops an accounting estimate to achieve the objective set out by an accounting policy. The
amendments will apply prospectively to changes in accounting estimates and changes in accounting
policies occurring on or after the beginning of the first annual reporting period in which the company
applies the amendments.
- Amendments to IAS 12 ‘Income Taxes’- Deferred Tax related to Assets and Liabilities arising from a Single
Transaction (effective for annual reporting periods beginning on or after January 1, 2023 with earlier
application permitted). The amendments narrow the scope of the initial recognition exemption (IRE) so

that it does not apply to transactions that give rise to equal and offsetting temporary differences. As a
result, companies will need to recognise a deferred tax asset and a deferred tax liability for temporary
differences arising on initial recognition of a lease and a decommissioning provision. For leases and
decommissioning liabilities, the associated deferred tax asset and liabilities will need to be recognised
from the beginning of the earliest comparative period presented, with any cumulative effect recognised
as an adjustment to retained earnings or other components of equity at that date.
- Amendment to IAS 16 ‘Property, plant and equipment’ (effective for annual reporting periods beginning
on or after January 1, 2022). The amendments clarify the prohibition on an entity from deducting from
the cost of an item of property, plant and equipment any proceeds from selling items produced while
bringing that asset to the location and condition necessary for it to be capable of operating in the manner
intended by management. Instead, an entity recognizes the proceeds from selling such items, and the
cost of producing those items, in statement of profit or loss.
- Amendment to IAS 37 ‘Provisions, Contingent Liabilities and Contingent Assets’ - Onerous Contracts:
Cost of Fulfilling a Contract (effective for annual reporting periods beginning on or after January 1, 2022).
The amendments specify the costs a company should include as the cost of fulfilling a contract when
assessing whether a contract is onerous.
- On May 14, 2020, the IASB issued 'Annual Improvements to IFRS Standards 2018-2020' (Amendments to
IAS 41, IFRS 1, IFRS 9, and IFRS 16)'. The amendments are effective for annual periods beginning on or
after January 1, 2022.
- Amendment to IFRS 3 ‘Business Combinations’ (effective for annual reporting periods beginning on or
after January 1, 2022). The amendment updates a reference in IFRS 3 to the Conceptual Framework for
Financial Reporting without changing the accounting requirements.
The above standards, amendments to approved accounting standards and interpretations are not likely
to have any material impact on the Company's financial statements.
Other than the aforesaid standards, interpretations and amendments, IASB has also issued the following
standards and interpretation, which have not been notified locally or deferred by the SECP as at June 30,
2022:
- IFRS 1 (First Time Adoption of International Financial Reporting Standards)

- IFRS 17 (Insurance Contracts)
- IFRIC 12 (Service concession arrangements)
2.6 Exemption from application of IFRS 9 'Financial Instruments’

The Securities and Exchange Commission of Pakistan (SECP) through S.R.O. 1177 (I)/2021 dated September
13, 2021 has notified that in respect of companies holding financial assets due from the Government of
Pakistan (GoP), the requirements contained in IFRS 9 with respect to application of Expected Credit Loss
(ECL) model shall not be applicable till June 30, 2022, provided that such companies shall follow relevant
requirements of IAS 39 ‘Financial Instruments: Recognition and Measurement’ in respect of above referred
financial assets during the exemption period.
Consequently, the Company has not recorded impact of application of ECL model on the financial assets due
directly/ultimately from the GoP in these financial statements.
2.7 Exemption from application of IFRS 2 'Share Based Payment'

On August 14, 2009, the Government of Pakistan (GoP) launched Benazir Employees’ Stock Option Scheme (the
Scheme) for eligible employees of certain State Owned Enterprises (SOEs) and non-State Owned Enterprises
(non-SOEs) where GoP holds significant investments. To administer the Scheme, the GoP transferred 12% of
its investment to BESOS Trust Fund (the Trust) created for the purpose by each of such entities.
Keeping in view the difficulties that may be faced by the entities covered under the Scheme, SECP on receiving
representation from some of the entities covered under the scheme and after having consulted the Institute
of Chartered Accountants of Pakistan vide their letter number CAIDTS/PS& TAC/2011-2036 dated February 2,
2011 granted exemption to such entities from the application of IFRS 2 (Share based payment) to the Scheme
vide SRO 587 (I)/2011 dated June 7, 2011.
The Supreme Court of Pakistan (SCP), vide its detailed judgment dated December 22, 2021, has declared the
BESOS Scheme ultra vires. Accordingly, the appropriate measures in collaboration with relevant stakeholders
are being taken by the Company to implement the decision of the SCP.
3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The principal accounting policies applied in the preparation of these financial statements are set out below.
These policies have been consistently applied to all the years presented in these financial statements except
for reporting of the Company's operations as one reportable segment. Further, the Company has adopted the
accounting policy for government grant as disclosed in note 3.22 to these financial statements.
3.1 Income tax

Income tax comprises current and deferred tax and it is recognized in profit or loss except to the extent that
it relates to items recognized outside of profit or loss (whether in other comprehensive income or directly in
equity), if any, in which case the tax amounts are recognized outside of profit or loss.
Current
Provision for current income tax is based on taxable income at the applicable tax rates after taking into
account tax credits and tax rebates, if any.
Deferred
The Company accounts for deferred tax using the 'liability method' in respect of all temporary differences
between carrying amounts of assets and liabilities in the financial statements and the corresponding tax
bases. Deferred tax liabilities are recognized for all taxable temporary differences and deferred tax assets
are recognized to the extent, it is probable that taxable profits will be available against which deductible
temporary differences, unused tax losses and unused tax credits can be utilized.
Deferred tax assets are reviewed at each reporting date and are reduced to the extent that it is no longer
probable that the related tax benefit will be realized. Deferred tax has been calculated at the estimated
effective tax rate of 36% after taking into account the availability of depletion allowance and royalty. The tax
rate is reviewed periodically and significant adjustments are incorporated, where required.
Deferred tax assets and liabilities are offset if there is a legally enforceable right to offset current tax liabilities
and assets and they relate to income taxes levied by the same tax authority.
3.2 Provisions
Provisions are recognized when the Company has a present legal or constructive obligation as a result of past
events, it is probable that an outflow of resources embodying economic benefits will be required to settle the
obligation and a reliable estimate can be made of the amount of obligation. Provisions are reviewed at each
reporting date and significant adjustments are made to reflect the current best estimate.

3.3 Decommissioning cost

The activities of the Company normally give rise to obligations for site restoration, which may include
abandonment and removal of wells, facility decommissioning and dismantling, removal or treatment of waste
materials, land rehabilitation and site restoration.
Liabilities for decommissioning cost are recognized when the Company has an obligation for site restoration
and a reliable estimate of that liability can be made. The amount recognized is the estimated cost of
decommissioning based on current requirements, technology and price levels and is discounted to its present
value over the useful economic life of the reserves. The associated decommissioning cost asset is capitalized
to the cost of property, plant and equipment, development and production assets and exploration and
evaluation assets, as the case may be. The recognized amount of decommissioning cost asset is subsequently
amortized/depreciated as part of the capital cost of the development and production assets and property,
plant and equipment.
While the provision is based on the best estimates, there is uncertainty regarding both the amount and
timing of incurring these costs. Any change in the present value of the estimated expenditure is dealt with
prospectively and reflected as an adjustment to the provision and a corresponding adjustment to property,
plant and equipment, development and production assets and exploration and evaluation assets, as the
case may be. The unwinding of discount on decommissioning provision is recognized as finance cost in the
statement of profit or loss.
The decommissioning cost has been discounted at a real discount rate of 1.30% (2021: 1.30%) per annum.
3.4 Employee benefits

The Company operates following plans for its eligible employees:
i) Defined benefit funded and unfunded plans:
a) The Company makes contributions to funded plans and records liability for funded and unfunded
plans on the basis of actuarial valuations, carried out annually by independent actuaries using the
"Projected Unit Credit Method" and the latest valuation was carried out as at June 30, 2022. The
results of the valuation are summarized in note 32 to these financial statements.
The Company’s net obligation in respect of defined benefit plans is calculated separately for each
plan by estimating the present value of the future benefit that employees have earned in return for
their service in the current and prior periods. Past service cost and curtailments are recognized in
statement of profit or loss, in the period in which change takes place.
Remeasurement gains and losses arising from experience adjustments and changes in actuarial
assumptions are charged or credited in other comprehensive income in the year in which they arise.
b) The Company has the policy to provide for compensated absences of its employees in accordance
with respective entitlement on cessation of service; related expected cost thereof has been
recognized in the statement of profit or loss.
ii) Defined contribution provident fund, for which Rs 196,106 thousand (2021: Rs 101,521 thousand) are
charged to statement of profit or loss for the year. The contributions to the fund are made by the Company
at the rate of 10% of the basic salary.
3.5 Property, plant and equipment

Property, plant and equipment except freehold land are stated at cost less accumulated depreciation and
accumulated impairment losses, if any. Freehold land is stated at cost. Cost in relation to property, plant
and equipment comprises acquisition and other directly attributable costs to bring the asset to the location
and condition necessary for it to be capable of operating in the manner intended by the management and
decommissioning cost as referred in note 3.3 to these financial statements. The cost of self constructed
assets also includes the cost of materials, direct labour and any other costs directly attributable to bringing
the assets to working condition for their intended use.
Depreciation on property, plant and equipment is charged to statement of profit or loss using the straight line
method at rates specified in note 11 to these financial statements except for decommissioning cost which
is charged on unit of production basis, so as to write off the cost of property, plant and equipment over their
estimated useful lives.
Depreciation on additions to property, plant and equipment is charged from the month in which an asset is
available for use while no depreciation is charged for the month in which the asset is derecognized.
Subsequent costs are included in the assets' carrying amounts when it is probable that future economic
benefits associated with the item will flow to the Company and the cost of the item can be measured reliably.
Carrying amount of parts so replaced, if any, is derecognized. All other repairs and maintenance are charged
to statement of profit or loss as and when incurred. Gains and losses on disposals are credited or charged to
statement of profit or loss in the year of disposal.
Capital work in progress is stated at cost less impairment loss, if any, and transferred to respective item of
property, plant and equipment when available for intended use.
The carrying amounts of the Company's assets are reviewed at each reporting date to determine whether
there is any indication of impairment loss. If any such indication exists, the recoverable amount of such assets
is estimated and impairment losses are recognized in the statement of profit or loss. Where an impairment
loss subsequently reverses, the carrying amount of the asset is increased to the revised recoverable amount
but limited to the extent of the carrying amount that would have been determined (net of depreciation)
had no impairment loss been recognized for the asset in prior years. A reversal of the impairment loss is
recognized as income in the statement of profit or loss.
3.6 Intangible assets

An intangible asset is recognized if it is probable that future economic benefits that are attributable to the
asset will flow to the Company and that the cost of such asset can also be measured reliably. Intangible
assets having definite useful life are stated at cost less accumulated amortization. Intangible assets which
have indefinite useful life are not amortized and tested for impairment annually, if any.
3.7 Exploration and evaluation assets

The Company applies the “successful efforts” method of accounting for Exploration and Evaluation (E&E)
expenditures. Under this method of accounting, all property acquisitions and exploratory/evaluation drilling
expenditures are initially capitalized as E&E assets in cost centers by well, field or exploration area, as
appropriate, till such time that technical feasibility and commercial viability of extracting gas and oil are
demonstrated.
Major costs capitalized include material, chemical, fuel, well services, rig costs, cost of recognizing provisions
for future site restoration and decommissioning and any other cost directly attributable to a particular well.
All other exploration costs including cost of technical studies, seismic acquisition and processing, geological
and geophysical activities are charged against income as exploration and prospecting expenditure. Costs

incurred prior to having obtained the legal rights to explore an area are charged directly to the statement of
profit or loss as and when incurred.
Tangible assets used in E&E activities including the Company’s vehicles, drilling rigs and other property, plant
and equipment used by the Company’s exploration function are classified as property, plant and equipment.
However, to the extent that such a tangible asset is consumed in developing an E&E asset, the amount
reflecting that consumption is recorded as part of the cost of the E&E asset. Such costs include directly
attributable overheads, together with the cost of other materials consumed during the exploration and
evaluation phases.
E&E assets relating to each exploration license/field are carried forward, until the existence or otherwise of
commercial reserves have been determined subject to certain limitations including review for indications of
impairment. If commercial reserves have been discovered, the carrying value after any impairment loss of
the relevant E&E assets is then reclassified as development and production assets. Otherwise, the capitalized
costs are written off as dry hole costs. E&E assets are not amortized.
E&E assets are assessed for impairment when facts and circumstances indicate that carrying amounts may
exceed the recoverable amounts of these assets. Such indicators include, the point at which a determination
is made as to whether or not commercial reserves exist, the period for which the Company has right to
explore has either expired or will expire in the near future and is not expected to be renewed, substantive
expenditure on further exploration and evaluation activities is not planned or budgeted and any other event,
that may give rise to indication that such assets are impaired.
Where an impairment loss subsequently reverses, the carrying amount of the E&E assets is increased due
to the revised recoverable amount but limited to the extent of the carrying amount that would have been
determined had no impairment loss being recognized for the E&E assets in prior years. A reversal of the
impairment loss is recognized as income in the statement of profit or loss.
3.8 Development and production assets

Development and production assets represent the cost of developing the discovered commercial reserves,
together with the capitalized E&E expenditures transferred from E&E assets as outlined in note 3.7 above.
The cost of development and production assets also includes the cost of acquisitions of such assets, directly
attributable overheads, production bonus and the cost of recognizing provisions for future site restoration and
decommissioning. Development and production assets are amortized on a unit of production basis, which is
the ratio of oil and gas production in the year to the estimated quantities of commercial reserves at the end
of the year plus the production during the year.
Changes in the estimates of commercial reserves are dealt with prospectively. Acquisition cost of leases,
where commercial reserves have been discovered, are capitalized and amortized on unit of production basis.
Impairment test of development and production assets is also performed whenever events and circumstances
arising during the development and production phase indicate that carrying amounts of the development and
production assets may exceed their recoverable amount. Such circumstances depend on the interaction
of a number of variables, such as the recoverable quantities of hydrocarbons, the production profile of the
hydrocarbons, the cost of the development of the infrastructure necessary to recover the hydrocarbons,
the production costs, the contractual duration of the production concession and the net selling price of the
hydrocarbons produced.
The carrying amounts are compared against expected recoverable amounts of the oil and gas assets,
generally by reference to the present value of the future net cash flows expected to be derived from such
assets. The cash generating unit applied for impairment test purpose is generally field by field basis, except
that a number of fields may be grouped as a single cash generating unit where the cash flows of each field
are inter-dependent.
Where an impairment loss subsequently reverses, the carrying amount is increased due to the revised
recoverable amount but limited to the extent of the carrying amount that would have been determined had
no impairment loss being recognized in prior years. A reversal of the impairment loss is recognized as income
in the statement of profit or loss.
3.9 Investment in associates

An associate is an entity over which the Company has significant influence and that is neither a subsidiary nor
an interest in a joint venture. Significant influence is the power to participate in the financial and operating
policy decisions of the investee but is not control or joint control over those policies. The results, assets
and liabilities of the associate are incorporated in these financial statements using the equity method of
accounting.
Under this method, investment in associates is carried in the statement of financial position at cost as
adjusted for post acquisition changes (net of tax) in the Company’s share of net assets of the associate, less
any impairment in the value of investment. Dividend distribution by the associate is adjusted against the
carrying amount of investment. Unrealized gains on transactions between the Company and its associate
are eliminated to the extent of Company's interest in the associate. Losses of an associate in excess of the
Company’s interest in that associate (which includes any long term interest that, in substance, form part of
the Company’s net investment in the associate) are recognized only to the extent that the Company has
incurred legal or constructive obligation or made payment on behalf of the associate. The Company’s share
of post-acquisition profit or loss is included in statement of profit or loss, its share of post-acquisition other
comprehensive income or loss is included in statement of comprehensive income and its share of post-
acquisition movements in reserves is recognised in reserves.
3.10 Stores and spares

These are valued at the lower of cost and net realizable value less allowance for obsolete and slow moving
items. Material in transit is valued at cost. Cost is determined on the moving average basis and comprises
cost of purchases and other costs incurred in bringing the items to their present location and condition. Net
realizable value signifies the estimated selling price in the ordinary course of business less costs necessarily
to be incurred in order to make the sale.
When stores and spares meet the definition of property, plant and equipment, they are classified as stores
and spares held for capital expenditure under property, plant and equipment.
3.11 Foreign currencies
Foreign currency transactions and translations

Transactions in foreign currencies are recorded at the rate of exchange prevailing on the date of the
transaction. All monetary assets and liabilities in foreign currencies are translated into Rupees at the rate
of exchange prevailing at the statement of financial position date. All exchange differences are taken to the
statement of profit or loss.

Foreign operation
The transactions of foreign operation are translated at the rate of exchange prevailing on the date of
transaction. All monetary and non-monetary assets and liabilities of foreign operation are translated into
Rupees at exchange rate prevailing at the date of statement of financial position and the resulting currency
translation differences are recognized in other comprehensive income and accumulated as a separate
reserve in equity until the disposal of the foreign operation, upon which these are reclassified from equity to
statement of profit or loss when gain or loss on disposal is recognised.
3.12 Revenue recognition

Revenue from contracts with customers is recognized when or as the Company satisfies a performance
obligation by transferring of promised good or service to a customer. In case of goods, the Company
principally satisfies its performance obligations at a point in time. The transfer of control of hydrocarbons
usually coincides with the delivery of the same to customers.
When, or as, a performance obligation is satisfied, the Company recognizes as revenue the amount of the
transaction price that is allocated to that performance obligation. The transaction price is the amount of
consideration to which the Company expects to be entitled. Effect of adjustment, if any, arising from revision
in sale price is reflected as and when the prices are finalized with the customers and/or approved by the
Government.
Amounts billed or received prior to being earned, are deferred and recognized as deferred income. The
Company recognizes revenue on take or pay arrangements with the customers only to the extent that it is
highly probable that a significant reversal in the amount recognized will not occur when the uncertainty, if any,
associated with the revenue is subsequently resolved. The Company considers such uncertainty as resolved
when such revenue is received by the Company and customer cannot adjust the unused paid volumes in the
future.
3.13 Finance income and finance cost

Interest income on financial assets at amortized cost is calculated using the effective interest method
and is recognized in statement of profit or loss as part of finance income. Interest income is calculated by
applying the effective interest rate to gross carrying amount of a financial asset except for financial assets
that subsequently become credit impaired. For credit impaired financial assets, the effective interest rate is
applied to the net carrying amount of the financial assets. Dividend income is recognized when the right to
receive is established. Foreign currency gains and losses are reported on a net basis. The Company recognizes
interest on delayed payments from counter parties on probability of receipt basis.
Mark up, interest and other charges on borrowings are charged to profit or loss in the period in which they
are incurred. Borrowing costs which are directly attributable to the acquisition, construction or production
of a qualifying asset are capitalised as part of the cost of that asset. The Company suspends capitalization of
borrowing costs during extended period when active development of a qualifying asset is suspended.
3.14 Borrowings
Borrowings are recognized initially at fair value, net of transaction costs incurred. Borrowings are subsequently
carried at amortized cost using the effective interest method.
Preference shares, which are mandatorily redeemable by the Company are classified as liabilities. The profit
on these preference shares is recognized in the statement of profit or loss as finance cost.
3.15 Joint operations

Investments in joint arrangements are classified as either joint operations or joint ventures depending on
contractual rights and obligations of the parties to the arrangement. The Company has assessed the nature
of its arrangements and determined them to be joint operations.
The Company has recognized its share of assets, liabilities, revenues and expenses jointly held or incurred
under the joint operations on the basis of latest available audited financial statements of the joint operations
and where applicable, the cost statements received from the operator of the joint venture, for the intervening
period up to the statement of financial position date. Unrealized gains on transactions between the Company
and its joint operations are eliminated to the extent of Company's interest in the joint operations.
3.16 Financial instruments

A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability
or equity instrument of another entity.
a) Financial assets
Financial assets are recognized initially at fair value, normally being the transaction price. In the case of
financial assets not classified at fair value through profit or loss, directly attributable transaction costs are
also included. The subsequent measurement of financial assets depends on their classification, as set out
below. The Company derecognizes financial assets when the contractual rights to the cash flows expire.
The Company classifies its financial assets as measured at amortized cost, fair value through other
comprehensive income or fair value through profit or loss. The classification depends on the business model
for managing the financial assets and the contractual cash flow characteristics of the financial asset. The
Company determines the classification of financial asset at initial recognition.
(i) Financial assets measured at amortized cost

Financial assets are classified as measured at amortized cost when they are held in a business model the
objective of which is to collect contractual cash flows and the contractual cash flows represent solely
payments of principal and interest. Such assets are carried at amortized cost using the effective interest
method if the time value of money is significant. Gains and losses are recognized in statement of profit or
loss when the assets are derecognized or impaired and when interest is recognized using the effective
interest method.
(ii) Financial assets measured at fair value through other comprehensive income
Financial assets are classified as measured at fair value through other comprehensive income when they
are held in a business model the objective of which is both to collect contractual cash flows and sell the
financial assets, and the contractual cash flows represent solely payments of principal and interest. Such
assets are carried on the statement of financial position at fair value with gains or losses recognized in
the other comprehensive income.
(iii) Financial assets measured at fair value through profit or loss

Financial assets are classified as measured at fair value through profit or loss when the asset does not
meet the criteria to be measured at amortized cost or fair value through other comprehensive income.
Such assets are carried on the statement of financial position at fair value with gains or losses recognized
in the statement of profit or loss.

b) Financial liabilities
The measurement of financial liabilities depends on their classification, as follows:
(i) Financial liabilities measured at fair value through profit or loss

Financial liabilities that meet the definition of held for trading are classified as measured at fair value
through profit or loss. Such liabilities are carried on the statement of financial position at fair value with
gains or losses recognized in the statement of profit or loss.
(ii) Financial liabilities measured at amortized cost

All other financial liabilities are initially recognized at fair value, net of directly attributable transaction
costs.
After initial recognition, other financial liabilities are subsequently measured at amortized cost using the
effective interest method.
c) Fair value measurement

Fair value is the price that would be received from sale of an asset or paid to transfer a liability in an orderly
transaction between market participants. The Company categorizes assets and liabilities measured at fair
value into one of three levels depending on the ability to observe inputs employed in their measurement.
Level 1 inputs are quoted prices in active markets for identical assets or liabilities. Level 2 inputs are inputs
that are observable, either directly or indirectly, other than quoted prices included within level 1 for the asset
or liability. Level 3 inputs are unobservable inputs for the asset or liability reflecting significant modifications
to observable related market data or Company’s assumptions about pricing by market participants.
d) Off-setting of financial assets and liabilities

A financial asset and a financial liability is offset and the net amount is reported in the statement of financial
position if the Company has a legally enforceable right to set-off the recognised amounts and intends either
to settle on a net basis or to realise the asset and settle the liability simultaneously.
e) Impairment of financial assets

The Company assesses on a forward looking basis the expected credit losses associated with financial assets
classified as measured at amortized cost at each statement of financial position date. Expected credit losses
are measured based on the maximum contractual period over which the Company is exposed to credit risk.
Since this is typically less than 12 months there is no significant difference between the measurement of
12-month and lifetime expected credit losses for the Company's in-scope financial assets. The measurement
of expected credit losses is a function of the probability of default, loss given default and exposure at default.
The expected credit loss is estimated as the difference between the asset’s carrying amount and the present
value of the future cash flows the Company expects to receive discounted at the financial asset’s original
effective interest rate. The carrying amount of the asset is adjusted, with the amount of the impairment gain
or loss recognized in the statement of profit or loss.
A financial asset or group of financial assets classified as measured at amortized cost is considered to
be credit-impaired if there is reasonable and supportable evidence that one or more events that have a
detrimental impact on the estimated future cash flows of the financial asset (or group of financial assets) have
occurred. Financial assets are written off where the Company has no reasonable expectation of recovering
amounts due.
3.17 Cash and cash equivalents

For the purpose of statement of cash flows, cash and cash equivalents comprise cash on hand, bank
instruments and balances with banks and include short term highly liquid investments that are readily
convertible to the known amounts of cash and are subject to an insignificant risk of change in value.
3.18 Dividend distribution

Dividend is recognized as a liability in the financial statements in the period in which it is declared.
3.19 Leases
Right of use asset

The Company assesses whether a contract is or contains a lease at the inception of the contract. If a contract
contains a lease and meets requirements of IFRS 16, the Company recognises a right-of-use asset and a
lease liability at the lease commencement date. The right-of-use asset is initially measured at cost, which
comprises the initial amount of the lease liability adjusted for any lease payments made at or before
the commencement date, plus any initial direct costs incurred and an estimate of costs to dismantle and
remove the underlying asset or to restore the underlying asset or the site on which it is located, less any lease
incentives received.
The right-of-use asset is subsequently depreciated using the straight-line method from the commencement
date to the earlier of the end of the useful life of the right-of-use asset or the end of the lease term. The
estimated useful lives of right-of-use assets are determined on the same basis as those of property, plant
and equipment. In addition, the right-of-use asset is periodically reduced by impairment losses, if any, and
adjusted for certain remeasurements of the lease liability.
Where the Company determines that the lease term of identified lease contracts are short term in nature i.e.
with a lease term of twelve months or less at the commencement date, right of use assets is not recognized
and payments made in respect of these leases are expensed in the statement of profit or loss.
Lease liability
The lease liability is initially measured at the present value of the lease payments that are not paid at the
commencement date, discounted using the interest rate implicit in the lease or if that rate cannot be readily
determined, the Company’s incremental borrowing rate. Generally, the Company uses its incremental
borrowing rate as the discount rate.
Lease payments in the measurement of the lease liability comprise the following:
a. fixed payments, including in-substance fixed payments;
b. variable lease payments that depend on an index or a rate, initially measured using the index or rate as
at the commencement date;
c. amounts expected to be payable under a residual value guarantee; and
d. the exercise price under a purchase option that the Company is reasonably certain to exercise, lease
payments in an optional renewal period if the Company is reasonably certain to exercise an extension
option, and penalties for early termination of a lease unless the Company is reasonably certain not to
terminate early.

The lease liability is measured at amortised cost using the effective interest method. It is remeasured when
there is a change in future lease payments arising from a change in an index or rate, if there is a change in
the Company’s estimate of the amount expected to be payable under a residual value guarantee, or if the
Company changes its assessment of whether it will exercise a purchase, extension or termination option.
When the lease liability is remeasured in this way, a corresponding adjustment is made to the carrying
amount of the right-of-use asset, or is recorded in profit or loss if the carrying amount of the right-of-use asset
has been reduced to zero.
3.20 Contingent liabilities and assets

A contingent liability is disclosed when the Company has a possible obligation as a result of past events, whose
existence will be confirmed only by the occurrence or non-occurrence, of one or more uncertain future events
not wholly within the control of the Company; or the Company has a present legal or constructive obligation
that arises from past events, but it is not probable that an outflow of resources embodying economic benefits
will be required to settle the obligation, or the amount of the obligation cannot be measured with sufficient
reliability.
A contingent asset is disclosed, which is a possible asset that arises from past events and whose existence
will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not
wholly within the control of the entity.
3.21 Non-current assets classified as held for sale

Non current assets are classified as assets held for sale and carried at the lower of carrying amount and fair
value less cost to sell if their carrying amount is recoverable principally through a sale transaction rather than
through continuing use. These assets are not depreciated or amortised while they are classified as held for
sale. Any impairment loss on initial classification and subsequent measurement is recognised as an expense.
Any subsequent increase in fair value less cost to sell (not exceeding the accumulated impairment loss that
has been previously recognised) is recognised in the statement of profit or loss.
3.22 Government grant

Government grant is recognised where there is reasonable assurance that the grant will be received and all
attached conditions will be complied with. The benefit provided by the government under a loan arrangement
at a below-market rate of interest is treated as a government grant. The loan obtained at below-market rate
of interest is recognised and measured in accordance with IFRS 9 ""Financial Instruments"" and the benefit
of the below-market rate of interest is government grant, which is measured as the difference between the
initial carrying value of the loan determined in accordance with IFRS 9 and the proceeds received. Government
grants related to assets are presented in the statement of financial position as a reduction to the carrying
amount of the relevant assets and are recognised as a reduction to depreciation expense in the statement of
profit or loss over the same period and in the same proportions as the relevant assets.
3.23 Operating segments

Operating segments are reported in a manner consistent with the internal reporting provided to the chief
operating decision-maker. The chief operating decision-maker, who is responsible for allocating resources and
assessing performance of the operating segments, has been identified as the Board of Directors that makes
strategic decisions. The management has determined that the Company has a single reportable segment as
the Board of Directors views the Company’s operations as one reportable segment.
2022 2021
4. SHARE CAPITAL
Authorized capital
1,309,000,100 (2021: 250,000,000)
ordinary shares of Rs 10 each 13,090,000 2,500,000
Issued, subscribed and paid up capital

24,850,007 (2021: 24,850,007) ordinary shares of
Rs 10 each issued for cash 248,500 248,500

Rs 10 each issued for consideration other than cash 4.1 119,000 119,000

Rs 10 each issued as bonus shares 4.2 966,525 966,525
1,334,025 1,334,025
4.1 This represents shares allotted to the Government of Pakistan (GoP) and Fauji Foundation in consideration
for transfer of assets and liabilities of Pak Stanvec Petroleum Project.
4.2 736,120 bonus shares have not been issued as at June 30, 2022 due to pending resolution of issue
relating to deduction of withholding income tax on issuance of bonus shares (2021: 736,120 bonus
shares).
4.3 Major shareholding of the Company is as follows:
2022 2021
(Percentage)
Fauji Foundation 40.00 * 40.00 *

Oil and Gas Development Company Limited (OGDCL) 20.00 * 20.00 *
Government of Pakistan 18.39 ** 18.39 **
* Shareholding includes 444,675 and 222,338 bonus shares (2021: 444,675 and 222,338 bonus shares) of Fauji
Foundation and OGDCL respectively, which have not been issued as at year end due to pending resolution of
issue as referred to in note 4.2 to these financial statements.
** It excludes shares transferred to BESOS Trust Fund in prior years as referred to in note 2.7 to these financial
statements.

4.4 Distribution of shareholders
2022 2021
Category (Number of shares)
Sponsor shareholders 104,568,216 104,568,216

Directors 518 510
Executives 3,991 1,199
Others 28,829,775 28,832,575
133,402,500 133,402,500
There are no foreign shareholders including natural persons who hold more than 5% of the shareholding.
4.5 Rights and privileges in the Participation and Shareholders Agreement (PSA)
A Participation and Shareholders Agreement (PSA) was signed among sponsor shareholders i.e. Fauji
Foundation, the GoP and OGDCL on June 3, 1985 which contained the rights and privileges of the parties.
PSA was later amended through a Supplemental PSA dated July 25, 1992.
Right of First Refusal

If any of the sponsor shareholders desires to sell or transfer its shares in the Company in whole or in
part, the remaining sponsor shareholders shall have the first right to purchase such shares, subject to
the conditions and in the manner prescribed in the PSA.
Board Selection
The membership of the Board of Directors of the Company shall reflect as closely as possible the
proportion in which shares of the Company are held by the sponsor shareholders and others.
Management Right
The management of the affairs and the business of the Company shall vest in and be conducted by Fauji
Foundation through a Managing Director exclusively nominated by Fauji Foundation.
2022 2021
5. OTHER RESERVES
Capital redemption reserve fund 5.1 10,590,001 10,590,001

Self insurance reserve 5.2 4,600,000 4,600,000
Foreign currency translation reserve 5.3 521,987 -
15,711,988 15,190,001
5.1 This reserve was created for redemption of redeemable preference shares in the form of cash to the
preference shareholders.
5.2 The Company has set aside a specific capital reserve for self insurance of assets which have not been
insured, for uninsured risks and for deductibles against insurance claims.
5.3 This reserve represents accumulated balance of effect of translation of a foreign operation into Rupees
as per the Company's accounting policy.
6. LONG TERM FINANCING
Under 'Temporary Economic Relief Facility' (TERF) announced by the State Bank of Pakistan (SBP), the
Company has secured financing of Rs 1 billion for installation of stand-alone processing facilities at Mari
field for low BTU gas from Tipu, Goru-B and HRL Reservoirs ('Sachal Gas Processing Complex', formerly
known as GTH project) for enhancement of production from Mari Field. TERF is obtained through a
commercial bank with quarterly repayments. Tenor of the facility is 10 years including two years of grace
period for principal repayments. Security under TERF facility is first pari passu hypothecation charge over
all present & future fixed assets of the Company (excluding land and building) with 25% margin.
Long term financing has been recognised at amortized cost, which is calculated using effective interest
rates on various drawdown dates ranging from 7.90% to 10.43% per annum. The differential mark-up
has been recognised as 'deferred government grant' and has been deducted from the carrying value of
related asset.
2022 2021
Proceeds of TERF loan announced by the SBP 1,000,000 -

Less: Deferred government grant deducted from
carrying value of property, plant and equipment (275,874) -
724,126 -
Borrowing costs capitalized in property, plant and equipment 43,650 -
Borrowing costs paid (15,669) -
752,107 -
Less: Current maturity of long term financing (27,981) -
Long term financing 724,126 -
7. DEFERRED LIABILITIES
Provision for decommissioning cost 7.1 14,525,961 10,149,673
Provision for employee benefits - unfunded 7.2 1,018,332 1,022,050
15,544,293 11,171,723
7.1 Provision for decommissioning cost

Balance at beginning of the year 10,149,673 9,235,085
Provision made during the year 1,931,147 364,680
Revision due to change in estimates 1,478,604 (323,597)
Cost incurred during the year (11,977) (25,792)
Unwinding of discount 26 978,514 899,297
Balance at end of the year 14,525,961 10,149,673
The above provision is analysed as follows:

Wells 11,829,552 8,934,927
Production facilities including gathering lines 2,696,409 1,214,746
14,525,961 10,149,673
Wholly owned 11,269,051 7,801,716

Joint operations 3,256,910 2,347,957
14,525,961 10,149,673
It is expected that cash outflows resulting from decommissioning will occur between 2023 to 2050.

2022 2021
7.2 Provision for employee benefits - unfunded
Post retirement leaves 32.2 585,149 595,633

Post retirement medical 32.2 66,365 90,009
Compensated leave absences 366,818 336,408
1,018,332 1,022,050
8. TRADE AND OTHER PAYABLES
Creditors 776,886 502,045

Accrued liabilities 14,450,616 9,598,734
Joint operating partners 2,530,208 628,380
Retention money and performance bonds payable 318,780 405,662
Provident fund 46,160 226
Gas Development Surcharge (GDS) 8.1 1,544,777 1,961,337
General sales tax 612,352 441,374
Excise duty 165,591 153,737
Gas Infrastructure Development Cess (GIDC) 8.1 390,373 300,464
Royalty 1,259,199 2,319,172
Redeemable preference shares 8.2 107,783 107,783
Profit accrued on redeemable preference shares 9,953 9,953
Workers' Welfare Fund 868,514 731,770
Workers' Profit Participation Fund 19,361 50,691
Others 198,897 45,475
23,299,450 17,256,803
8.1 These represent GDS and GIDC received from customers upto June 30, 2022, that will be deposited with the
GoP in July 2022 as per their respective rules and regulations. Furthermore, GDS and GIDC and their related
sales tax recoverable from customers as of June 30, 2022 and payable to the GoP when collected from
customers amounting to Rs 156,570,018 thousand (2021: Rs 160,260,783 thousand) are not reflected in these
financial statements in accordance with the Company's accounting policy.
On August 13, 2020, the Supreme Court of Pakistan has decided the matter of GIDC, which has restrained the
charging of GIDC from August 1, 2020 onwards and ordered gas consumers to pay GIDC arrears due upto July
31, 2020 in installments. The fertilizer companies have obtained stay orders against recovery from the Sindh
High Court, where the matter is subjudice.
8.2 5,335,946 (2021: 5,335,946) preference shares have not been issued as at June 30, 2022 due to pending
resolution of issue relating to deduction of withholding income tax on issuance of bonus shares. Further,
5,442,384 (2021: 5,442,384) preference shares have not been claimed/redeemed by certain minority
shareholders as at June 30, 2022.
2022 2021
9. UNCLAIMED DIVIDEND
Fauji Foundation 103,315 42,395

Oil and Gas Development Company Limited 51,658 21,198
Others 111,019 55,282
265,992 118,875
9.1 This includes dividend amounting to Rs 171,029 thousand (2021: Rs 70,181 thousand) due to pending
resolution of issue as referred to in note 4.2 to these financial statements.
10. CONTINGENCIES AND COMMITMENTS

10.1 Contingencies
a) There are no legal cases and claims, which warrant disclosure in these financial statements.
b) The Company has given corporate guarantees to the GoP under various Petroleum Concession Agreements
(PCAs) for the performance of obligations.
c) As part of the arrangement, as disclosed in note 14.2 of these financial statements, each of the consortium
companies has also provided, joint and several, parent company guarantees to ADNOC and Supreme Council
for Financial and Economic Affairs Abu Dhabi, UAE, to guarantee the obligations of Pakistan International Oil
Limited (PIOL), a related party.
2022 2021
10.2 Commitments
a) Commitments for capital expenditure:
Wholly owned 5,705,766 17,627,701

11,642,422 28,603,126
b) The Company’s share in outstanding minimum work

commitments under various PCAs aggregating to
US$ 60.83 million (2021: US$ 87.85 million) 12,509,977 13,906,655
c) The Company has entered into a Shareholders Agreement with the consortium partners as referred to in note
14.2 to these financial statements, under which the Company has committed to invest upto US$ 100 million
in PIOL during the next five years, out of which US$ 25 million have been invested upto June 30, 2022. The
remaining amount of US$ 75 million (Rs 15,423 million) will be invested in subsequent years.
11. PROPERTY, PLANT AND EQUIPMENT
Decommissioning
Cost–Mari field
and Joint Operations’ Stores and
Buildings on Buildings on Drilling rig, Equipment Computers production facilities spares held for Capital
214
Freehold Leasehold freehold leasehold Roads and tools and and general and allied Gathering Furniture Vehicles - Vehicles - including gathering capital work in
DESCRIPTION land land land land bridges equipment plant equipment lines and fixtures heavy light lines (note 3.5) expenditure progress Total
As at July 1, 2020
Cost 700,467 102,224 1,711,516 832,227 210,235 3,784,814 13,823,390 622,336 4,250,946 230,602 1,356,973 935,425 551,037 2,909,563 3,787,885 35,809,640
Accumulated depreciation - (20,412) (668,062) (271,898) (169,086) (2,317,158) (5,383,649) (516,748) (2,484,331) (96,088) (898,771) (539,191) (236,694) - - (13,602,088)
Net book value 700,467 81,812 1,043,454 560,329 41,149 1,467,656 8,439,741 105,588 1,766,615 134,514 458,202 396,234 314,343 2,909,563 3,787,885 22,207,552
Year ended June 30, 2021

Opening net book value 700,467 81,812 1,043,454 560,329 41,149 1,467,656 8,439,741 105,588 1,766,615 134,514 458,202 396,234 314,343 2,909,563 3,787,885 22,207,552
Additions / transfers from
capital work in progress - - 212,993 17,135 14,732 672,220 1,112,151 74,884 1,697,332 17,346 320,196 176,872 10,385 - 15,671,535 19,997,781
Additions - net of transfers - - - - - - - - - - - - - 2,581,672 - 2,581,672
Revision due to change in estimates of
provision for decommissioning cost - - - - - - - - - - - - (12,722) - - (12,722)
Disposals
Cost (450,290) - - - - (4,935) (839) (10,822) - (202) - (6,351) - - - (473,439)
Accumulated depreciation - - - - - 4,435 736 10,677 - 202 - 2,024 - - - 18,074

(450,290) - - - - (500) (103) (145) - - - (4,327) - - - (455,365)
Transfers - - - - - - - - - - - - - - (4,315,861) (4,315,861)
Depreciation charge - (1,487) (82,311) (38,800) (10,895) (192,245) (1,285,480) (48,076) (277,874) (19,456) (212,545) (118,653) (42,699) - - (2,330,521)
Net book value 250,177 80,325 1,174,136 538,664 44,986 1,947,131 8,266,309 132,251 3,186,073 132,404 565,853 450,126 269,307 5,491,235 15,143,559 37,672,536
As at July 1, 2021
Cost 250,177 102,224 1,924,509 849,362 224,967 4,452,099 14,934,702 686,398 5,948,278 247,746 1,677,169 1,105,946 548,700 5,491,235 15,143,559 53,587,071
Accumulated depreciation - (21,899) (750,373) (310,698) (179,981) (2,504,968) (6,668,393) (554,147) (2,762,205) (115,342) (1,111,316) (655,820) (279,393) - - (15,914,535)
Net book value 250,177 80,325 1,174,136 538,664 44,986 1,947,131 8,266,309 132,251 3,186,073 132,404 565,853 450,126 269,307 5,491,235 15,143,559 37,672,536

Opening net book value 250,177 80,325 1,174,136 538,664 44,986 1,947,131 8,266,309 132,251 3,186,073 132,404 565,853 450,126 269,307 5,491,235 15,143,559 37,672,536
Additions / transfers from
capital work in progress - - 32,202 45,616 2,450 441,966 6,894,705 143,397 3,327,326 33,692 12,264 84,582 1,416,933 - 23,584,060 36,019,193
Additions - net of transfers - - - - - - - - - - - - - 955,790 - 955,790
Revision due to change in estimates of
provision for decommissioning cost - - - - - - - - - - - - 37,471 - - 37,471
Disposals
Cost - - - - - - (80,376) (2,970) - - (14,502) (53,916) - - - (151,764)
Accumulated depreciation - - - - - - 80,209 2,878 - - 14,502 53,916 - - - 151,505
- - - - - - (167) (92) - - - - - - - (259)
Transfers - - - - - - - - - - - - - - (11,018,200) (11,018,200)
Depreciation charge - (1,487) (86,112) (40,155) (11,974) (291,150) (1,680,983) (100,366) (534,511) (20,637) (279,406) (149,049) (29,274) - - (3,225,104)
Net book value 250,177 78,838 1,120,226 544,125 35,462 2,097,947 13,479,864 175,190 5,978,888 145,459 298,711 385,659 1,694,437 6,447,025 27,709,419 60,441,427
As at June 30, 2022

Cost 250,177 102,224 1,956,711 894,978 227,417 4,894,065 21,749,031 826,825 9,275,604 281,438 1,674,931 1,136,612 2,003,104 6,447,025 27,709,419 79,429,561
Accumulated depreciation - (23,386) (836,485) (350,853) (191,955) (2,796,118) (8,269,167) (651,635) (3,296,716) (135,979) (1,376,220) (750,953) (308,667) - - (18,988,134)
Net book value 250,177 78,838 1,120,226 544,125 35,462 2,097,947 13,479,864 175,190 5,978,888 145,459 298,711 385,659 1,694,437 6,447,025 27,709,419 60,441,427
Rates of depreciation (%) - 1-3 5 5 10 5-33.33 10 33.33 10 10 30 20

2022 2021
11.1 Net book value at year end represents:

Wholly owned 55,807,772 33,270,771
Joint operations 11.2 4,633,655 4,401,765
60,441,427 37,672,536
11.2 It includes assets having net book value amounting to Rs 1,561,391 thousand (2021: Rs 1,332,725 thousand),
being Company's share in joint operations operated by OGDCL and PPL (assets not in the possession of the
Company).
11.3 The depreciation charge has been allocated as follows:

2022 2021
Development and production assets 49,724 69,997

Exploration and evaluation assets 141,766 22,467
Operating and administrative expenses 2,114,028 1,764,210
Exploration and prospecting expenditure 489,429 391,967
Other income 430,157 81,880
3,225,104 2,330,521
11.4 The aggregate net book value of assets disposed off during the year is not more than Rs 5,000 thousand.
11.5 Particulars of the Company's significant immovable fixed assets (i.e. land and buildings) as at June 30, 2022
are as follows:
Approximate
Description Location Area of Land
Wells, production / processing facilities, residential area, field office and warehouse Sindh 2,799.24 acres
Land and head office building Islamabad 0.96 acres
Wells, production / processing facilities, field office and warehouse Balochistan 80.97 acres
Wells, production / processing facilities and guest house KPK 56.64 acres
Wells, production / processing facilities and field office Punjab 23.37 acres
Wells, production / processing facilities and field office Punjab/KPK 68.88 acres

12. DEVELOPMENT AND PRODUCTION ASSETS
Development Decommissioning
expenditure cost Total
As at July 1, 2020
Cost 20,265,891 1,930,057 22,195,948
Accumulated amortization (9,059,624) (1,369,976) (10,429,600)
Net book value 11,206,267 560,081 11,766,348

Opening net book value 11,206,267 560,081 11,766,348
Additions 5,739,034 308,423 6,047,457
Transferred from exploration and evaluation assets 770,943 69,410 840,353
Left over inventory transferred to stores and
spares held for capital expenditure (143,560) - (143,560)
Revision due to change in estimates of provision for
decommissioning cost (125,280) 86,851 (38,429)
Impairment loss (200,000) - (200,000)
Amortization charge (1,821,875) (172,059) (1,993,934)
Closing net book value 15,425,529 852,706 16,278,235
As at July 1, 2021
Cost 26,507,028 2,394,741 28,901,769
Accumulated impairment losses (200,000) - (200,000)
Net book value 15,425,529 852,706 16,278,235

Additions 2,023,777 148,490 2,172,267
decommissioning cost - 1,232,639 1,232,639
Amortization charge (1,778,078) (171,581) (1,949,659)
Closing net book value 15,671,228 2,062,254 17,733,482
As at June 30, 2022

Cost 28,530,805 3,775,870 32,306,675
Accumulated impairment losses (200,000) - (200,000)
Net book value 15,671,228 2,062,254 17,733,482
2022 2021
Net book value at year end represents:

Wholly owned 13,513,135 11,253,538
17,733,482 16,278,235
13. EXPLORATION AND EVALUATION ASSETS
Exploration and
evaluation Decommissioning
expenditure cost Total
As at July 1, 2020
Cost 6,893,001 552,299 7,445,300
Accumulated impairment losses (1,457,852) (71,917) (1,529,769)
Net book value 5,435,149 480,382 5,915,531

Additions 2,680,209 45,872 2,726,081
Transferred to development and production assets (770,943) (69,410) (840,353)
Left over inventory transferred to stores and spares
held for capital expenditure (267,062) - (267,062)
decommissioning cost - (96,087) (96,087)
Cost of dry and abandoned wells (51,913) - (51,913)
As at July 1, 2021
Cost 8,483,292 432,674 8,915,966
Net book value 7,025,440 360,757 7,386,197

Additions 12,841,617 365,724 13,207,341
decommissioning cost - 183,389 183,389
Cost of dry and abandoned wells (6,220,247) (17,914) (6,238,161)
As at June 30, 2022

Cost 15,104,662 963,873 16,068,535
Net book value 13,646,810 891,956 14,538,766
2022 2021
Net book value at year end represents:

Wholly owned 303,603 525,617
14,538,766 7,386,197

2022 2021
14. LONG TERM INVESTMENTS
Investment in related party - associate (Un-quoted) 14.1 2,185,145 161,018

Term Finance Certificates (TFCs) (Quoted) 14.5 1,000,000 1,000,000
3,185,145 1,161,018
14.1 Investment in related party - associate (Un-quoted)
National Resources (Pvt) Limited

Opening carrying value 161,018 -
Cost of investment - 209,000
Share of loss for the year (96,228) (47,982)
Closing carrying value 64,790 161,018
Pakistan International Oil Limited - foreign operation

Opening carrying value - -
Cost of investment 14.2 4,180,000 -
Share of loss for the year 14.2 (2,516,842) -
Effect of translation of investment 521,987 -
Closing carrying value 2,185,145 -

Total closing carrying value - at equity method 2,249,935 161,018
Less: Long term investments classified as held for sale

shown as current assets 14.4 (64,790) -
2,185,145 161,018
14.2 During the year, the Company has made investment in Pakistan International Oil Limited (PIOL), a company
engaged in the business of extraction of oil and natural gas and registered as a limited liability company in the
Emirates of Abu Dhabi and incorporated in Abu Dhabi Global Market on July 15, 2021, with 25% shareholding
by each consortium partners namely MPCL, OGDCL, PPL and GHPL. The concession agreement between
PIOL and Abu Dhabi National Oil Company (ADNOC) was signed on August 31, 2021 and following the award
of Offshore Block-05 in Abu Dhabi on August 31, 2021, the Company has subscribed to 2.5 million ordinary
shares of PIOL by paying US$ 25,000 thousand (Rs 4,180,000 thousand).
Share of loss of PIOL is based on the audited financial statements for the period from inception to December
31, 2021, adjusted for transactions and events upto June 30, 2022 based on management accounts.
2022 2021
Summarized financial information is as follows:
Summarized statement of financial position

Current assets 3,009,309 -
Non-current assets 6,349,723 -
Current liabilities (618,453) -
Net assets 8,740,579 -
Company's shareholding 25% -
Share of net assets reconciled with carrying value of investment 2,185,145 -
Summarized statement of comprehensive income

Total comprehensive (loss) for the period (10,067,368) -
Company's shareholding 25% -
Share of comprehensive (loss) (2,516,842) -
14.3 Total share of loss of associates for the year amount to Rs 2,613,070 thousand (2021: Rs 47,982 thousand).
This mainly represents 3D seismic cost amounting to Rs 2,375,606 thousand (2021: Nil) incurred by PIOL that
is charged to statement of profit or loss as per the Company's accounting policy.
14.4 The Board of Directors in its meeting held on April 14, 2022 has approved the divestment of entire 20%
shareholding in an associated company, National Resources (Pvt) Limited, comprising of 20.9 million shares
on book value basis effective from February 28, 2022 subject to execution of share purchase agreement and
obtaining of requisite approvals. The share purchase agreement has been signed by all shareholders and is
submitted for requisite approval.
2022 2021
14.5 Term Finance Certificates (TFCs) (Quoted)
At amortised cost
Term Finance Certificates 1,041,068 1,039,831
Less: Current portion classified under current assets (41,068) (39,831)
1,000,000 1,000,000
This represents investment in TFCs having maturity of three years and are rated AAA by PACRA. TFCs are
secured by 105% lien over GoP securities and have earned profit at 9.03% per annum.

2022 2021
15. LONG TERM LOANS AND ADVANCES
Considered good
Loans and advances to employees 74,932 63,879
Less: Current portion classified under current assets (30,963) (29,826)
43,969 34,053
15.1 Loans and advances to employees are for house rent advance, purchase of vehicle, emergency and purchase
of household appliances as per Company's Human Resource policy. These are recoverable in 12 to 60 equal
monthly instalments. Interest free loans to employees have not been discounted as the effect is immaterial.
15.2 Loans and advances to employees exceeding Rs 1 million are as follows:
2022 2021
Number Rupees Number Rupees
of employees in thousand of employees in thousand
Rs 1 million to Rs 2 million 3 4,111 2 2,626

Exceeding Rs 2 million upto Rs 3 million 1 2,280 - -
Exceeding Rs 3 million upto Rs 6 million - - 1 5,363
4 6,391 3 7,989
2022 2021
16. LONG TERM DEPOSITS AND PREPAYMENTS
Deposits 123,515 181,818

Prepayments 1,241 456
124,756 182,274
17. DEFERRED INCOME TAX ASSET
Balance at beginning of the year 2,209,320 1,888,594

Credit / (charge) for the year:
Statement of profit or loss 858,589 318,294
Statement of comprehensive income (10,265) 2,432
848,324 320,726
Balance at end of the year 3,057,644 2,209,320
17.1 The balance of deferred income tax asset is in respect of following

temporary differences:
Exploration expenditure charged to statement of profit or loss but

to be claimed in future years against tax liabilities 7,832,559 6,268,399
Accounting and tax depreciation / amortization (5,012,604) (4,316,515)
Provision for employee benefits - unfunded 366,600 327,383
Others (128,911) (69,947)
3,057,644 2,209,320
17.2 The deferred tax asset has been recognised taking into account the availability of future taxable profits and it
is probable that the Company will be able to earn these profits.
2022 2021
18. STORES AND SPARES
Wholly owned 2,989,595 2,651,268

Joint operations 434,564 215,587
3,424,159 2,866,855
19. TRADE DEBTS
Due from associated companies * - considered good

Fauji Fertilizer Company Limited 999,994 593,739
Foundation Power Company Daharki Limited 647,637 642,569
Fauji Cement Company Limited - 19,836
Foundation Gas 11,290 6,290
1,658,921 1,262,434
Due from others - considered good

Central Power Generation Company Limited 15,927,606 9,876,297
Engro Fertilizer Limited 1,736,940 5,908,553
Pak Arab Fertilizers Limited 1,969,414 2,280,767
Fatima Fertilizer Company Limited 393,452 238,060
Sui Southern Gas Company Limited 6,002,876 5,379,293
Sui Northern Gas Pipelines Limited 3,952,035 2,169,520
Others 718,054 931,782
32,359,298 28,046,706
* These companies are associated companies by virtue of common directorship.
19.1 As detailed in note 8.1 to these financial statements, GDS and GIDC amounts and their related sales tax billed
to customers but not received are not included in these financial statements.
19.2 The maximum aggregate amount due from associated companies at the end of any month during the year
was Rs 1,815,520 thousand (2021: Rs 1,538,318 thousand).

2022 2021
19.3 The ageing of trade debts is as follows:
Neither past due nor impaired

Due from associated companies 1,322,543 937,346
Due from others 8,932,202 18,392,568
10,254,745 19,329,914
Past due but not impaired
Due from associated companies
Past due 0-30 days 5,001 -
Past due 30-60 days - -
Past due 60-90 days - -
Over 90 days 331,377 325,087
Due from others

Past due 0-30 days 2,428,392 1,352,988
Past due 30-60 days 3,750,840 1,103,290
Past due 60-90 days 340,072 705,361
Over 90 days 15,248,871 5,230,066
19.4 22,104,553 8,716,792
32,359,298 28,046,706
19.4 'Past due but not impaired' trade debts include amounts receivable directly/ultimately from the GoP
amounting to Rs 20,519,884 thousand (2021: Rs 8,469,842 thousand). Due to exemption provided by SECP
from application of ECL model on financial assets receivable from the GoP upto June 30, 2022, the Company
has not recorded the impact of application of ECL model on trade debts due directly/ultimately from GoP for
impairment assessment.
2022 2021
20. SHORT TERM LOANS AND ADVANCES
Considered good
Current portion of long term loans and advances 15 30,963 29,826
Advances to employees against expenses 151,531 105,185
Advances to suppliers and contractors 1,363,169 2,639,687
Receivables from joint operating partners 5,671,110 1,815,367
Management Gratuity Fund 575,828 880,796
7,792,601 5,470,861
21. SHORT TERM INVESTMENTS
At amortised cost
Local currency term deposits with banks 21.1 - 36,044,931
At fair value through profit or loss
Mutual funds 21.2 4,995,065 4,737,325
4,995,065 40,782,256
21.1 These had a maximum maturity period of 6 months, carrying profit ranging from 7.00% to 8.15% per annum.
21.2 Fair value has been determined using quoted repurchase prices, being net asset value of units as of June 30,
2022.
2022 2021
22. CASH AND BANK BALANCES
Cash on hand and bank instruments 1,155,564 2,877
Balances with banks on:

Deposit accounts 22.1 35,305,266 7,790,641
Current accounts 35,230 29,607
35,340,496 7,820,248
36,496,060 7,823,125
22.1 These include US$ 43,797 thousand (2021: US$ 28,651 thousand) having mark-up of 0.50% (2021: 0.50%) per
annum. The mark-up for local currency accounts ranges from 2.47% to 13.00% (2021: 3.25% to 7.70%) per
annum.
2022 2021
23. NET SALES
Product wise breakup of net sales is as follows:

Natural gas 89,877,313 69,943,982
Crude oil 5,253,043 3,070,658
Liquefied Petroleum Gas (LPG) 4,121 3,631
95,134,477 73,018,271
24. OPERATING AND ADMINSTRATIVE EXPENSES
Salaries, wages and benefits 24.1 7,742,893 5,888,423

Rent, rates and taxes 24.2 745,707 341,097
Legal, professional and support services 493,502 414,830
Fuel, light, power and water 260,929 174,710
Maintenance and repairs 1,217,588 1,077,395
Insurance 152,657 190,044
Depreciation 2,114,028 1,764,210
Amortization and impairment loss 1,974,765 2,017,574
Employees medical and welfare 527,210 428,223
Field and other services 2,320,476 2,054,345
Travelling 160,186 107,978
Licences and equipment maintenance 353,770 103,070
Auditor's remuneration and tax services 24.3 27,456 21,785
Mobile dispensary and social welfare 857,621 935,000
Training 147,688 94,037
Directors' fee and expenses 68,434 61,167
Reservoir study and production logging 149,034 105,502
Freight and transportation 561,364 130,803
Others 282,541 478,191
20,157,849 16,388,384
Less: Allocation of expenses to activities 2,755,316 1,348,704
17,402,533 15,039,680

24.1 These include operating lease rentals amounting to Rs 161,472 thousand (2021: Rs 131,116 thousand) in
respect of leased vehicles provided to eligible employees as per Company's policy.
24.2 These include expense amounting to Rs 359,389 thousand (2021: Rs 223,362 thousand) relating to short-term
leases.
2022 2021
24.3 Auditor's remuneration and tax services

Annual audit fee 3,386 3,150
Review of half yearly accounts and other certifications 1,815 1,349
Tax services 21,820 16,864
Out of pocket expenses 435 422
27,456 21,785
25. EXPLORATION AND PROSPECTING EXPENDITURE
Prospecting expenditure 4,693,412 4,491,776

Cost of dry and abandoned wells 6,238,161 51,913
10,931,573 4,543,689
26. FINANCE COST
Unwinding of discount on provision for decommissioning cost 978,514 899,297

Bank charges 1,295 1,384
Exchange loss - 409,795
979,809 1,310,476
27. OTHER CHARGES
Workers' Profit Participation Fund 2,754,074 2,350,692

Workers' Welfare Fund 868,514 731,770
3,622,588 3,082,462
28. FINANCE INCOME
Interest income on long term investments - TFCs 91,537 52,696

Interest income on short term investments 1,096,073 2,486,821
Income on mutual funds 498,468 169,889
Interest income on bank deposits 854,931 1,231,130
Exchange gain 1,942,076 -
4,483,085 3,940,536
29. PROVISION FOR INCOME TAX
Current - charge for the year 19,911,889 12,804,748

Deferred - credit for the year (858,589) (318,294)
19,053,300 12,486,454
2022 2021
(Percentage)
29.1 Reconciliation of effective tax rate
Applicable tax rate 58.3 48.1
Effect of:
- depletion allowance and royalty payments (21.6) (19.7)
- amounts not admissible for tax purposes 2.4 -
- change in tax rate (0.5) -
Others (1.9) -
Effective tax rate 36.7 28.4
29.2 The management has assessed that tax provision carried in the Company’s financial statements is sufficient.
Income tax liability as per financial statements for the last three tax years is adequate considering latest tax
assessments for the said years.
2022 2021
30. EARNINGS PER SHARE - BASIC AND DILUTED
Profit for the year (Rupees in thousand) 33,063,011 31,444,909

Number of ordinary shares outstanding (in thousand) 133,403 133,403
Earnings per ordinary share (in Rupees) 247.84 235.71
There is no dilutive effect on the basic earnings per ordinary share of the Company.
2022 2021
31. CASH AND CASH EQUIVALENTS
Cash and bank balances 36,496,060 7,823,125

Short term investments 4,995,065 40,782,256
41,491,125 48,605,381

32. EMPLOYEE BENEFITS
The results of the actuarial valuations carried out as at June 30, 2022 and June 30, 2021 are as follows:
32.1 Funded benefits
2022 2021
Non- Non-
Management Management Management Management
Gratuity Gratuity Gratuity Gratuity
Reconciliation of net defined benefit plan

Present value of defined benefit obligations 2,342,579 1,106,030 2,165,588 981,299
Fair value of plan assets (2,918,407) (1,106,030) (3,046,384) (981,299)
(Asset) / liability recognized in
statement of financial position (575,828) - (880,796) -
Movement in net defined benefit plan

Balance as at beginning of year (880,796) - - -
Expense / (credit) for the year 304,968 126,539 (604,232) 18,033
(575,828) 126,539 (604,232) 18,033
Contribution to fund during the year - (126,539) (276,564) (18,033)
Balance as at end of year (575,828) - (880,796) -
Movement in the present value of

defined benefit obligation
Present value at beginning of the year 2,165,588 981,299 2,960,596 1,088,659
Current service cost 250,808 44,112 316,827 45,638
Past service cost / (credit) 207,763 - (880,796) (40,389)
Interest cost 200,069 87,445 252,791 86,734
Benefits during the year (400,571) (116,053) (379,090) (163,179)
Remeasurement (gain) / loss on obligation (81,078) 109,227 (104,740) (36,164)
Present value at end of the year 2,342,579 1,106,030 2,165,588 981,299
Movement in fair value of plan assets

Balance as at beginning of year 3,046,384 981,299 2,960,596 1,088,659
Contributions during the year - 126,539 276,564 18,033
Interest income on plan assets 275,997 87,445 249,387 86,617
Remeasurement (loss) / gain on plan assets (3,403) 26,800 (61,073) (48,831)
Benefits during the year (400,571) (116,053) (379,090) (163,179)
Balance as at end of year 2,918,407 1,106,030 3,046,384 981,299
Plan assets comprise of:

Deposit with banks 2,918,407 1,106,030 3,046,384 981,299
Expense / (credit) for the year:
Recognized in statement of profit or loss

Past service cost / (credit) 207,763 - (880,796) (40,389)
Interest cost 200,069 87,445 252,791 86,734
Interest income on plan assets (275,997) (87,445) (249,387) (86,617)
382,643 44,112 (560,565) 5,366
2022 2021
Non- Non-
Management Management Management Management
Gratuity Gratuity Gratuity Gratuity
Recognized in statement of comprehensive income

Remeasurement loss / (gain) on obligations:
Due to change in financial assumptions 22,669 7,237 67,556 25,942
Due to change in experience adjustments (103,747) 101,990 (172,296) (62,106)
Remeasurement loss / (gain) on plan assets 3,403 (26,800) 61,073 48,831
(77,675) 82,427 (43,667) 12,667
Total expense / (credit) for the year 304,968 126,539 (604,232) 18,033
Actual return on plan assets 272,594 114,245 188,314 37,786
32.2 Un-funded benefits
2022 2021
Post Post Post Post
Retirement Retirement Retirement Retirement
Leaves Medical Leaves Medical
Present value of defined benefit obligations 585,149 66,365 595,633 90,009
Movement in un-funded defined benefit plan

Balance at beginning of the year 595,633 90,009 576,915 79,698
Expense / (credit) for the year 9,493 (19,339) 92,950 15,241
605,126 70,670 669,865 94,939
Benefits paid during the year (19,977) (4,305) (74,232) (4,930)
Balance at end of the year 585,149 66,365 595,633 90,009
Expense / (credit) for the year:

Recognized in statement of profit or loss
Interest cost 55,107 7,812 49,038 6,540
Remeasurement (gain) / loss (116,023) - (20,946) -
9,493 9,174 92,950 7,640
Recognized in statement of comprehensive income

Remeasurement (gain) / loss on obligations
(experience adjustment) - (28,513) - 7,601
Total expense / (credit) for the year 9,493 (19,339) 92,950 15,241

32.3 The principal actuarial assumptions used in the actuarial valuations are as follows:
2022 2021
(Per annum)
- Discount rate 13.50% 9.0%

- Expected rate of salary increase 13.5% - 17.0% 9.0% - 15.0%
- Increase in cost of medical benefits 13.50% 9.0%
- Mortality rates SLIC (2001-05)-1
- Employee turnover rate Moderate
32.4 Weighted average duration and projected payments
Non-
Management Management
Gratuity Gratuity
Weighted average duration of the obligation

as at June 30, 2022 (in years) 9.51 5.01
Projected benefit payments (undiscounted) are as follows: Rupees in thousand
For the year 2023 104,333 132,158

For the year 2024 208,502 148,851
For the year 2025 185,353 215,631
For the year 2026 138,775 245,430
For the year 2027 262,845 196,163
For the years 2028-32 2,125,943 959,477
32.5 Sensitivity analysis of the obligation:

Effect on present value of obligation
Non-
Management Management
Gratuity Gratuity
Discount rate:
0.5% point increase (68,868) (27,684)

0.5% point decrease 74,422 29,057
Salary / Medical rate:

0.5% point increase 70,618 26,434
0.5% point decrease (65,990) (25,421)
2022 2021
33. FINANCIAL INSTRUMENTS
33.1 Financial assets and liabilities
Financial assets
Maturity up to one year

Trade debts at amortized cost 32,359,298 28,046,706
Short term loans and advances at amortized cost 5,702,073 1,845,193
Other receivables at amortized cost 676,270 187,311
Current portion of long term
investments at amortized cost 41,068 39,831
Short term investments at amortized cost - 36,044,931
Short term investments at fair value through profit or loss 4,995,065 4,737,325
Interest accrued at amortized cost 29,853 100,635
Cash and bank balances at amortized cost 36,496,060 7,823,125
Maturity after one year

Long term investments at amortized cost 1,000,000 1,000,000
Long term loans and advances at amortized cost 43,969 34,053
Long term deposits at amortized cost 123,515 181,818
81,467,171 80,040,928
Financial liabilities
Maturity up to one year

Trade and other payables at amortized cost 18,076,490 11,134,821
Current maturity of long
term financing at amortized cost 27,981 -
Maturity after one year
Long term financing at amortized cost 724,126 -
18,828,597 11,134,821
33.2 Credit quality of financial assets
The credit quality of Company's financial assets have been assessed below by reference to external credit
ratings of counterparties determined by the Pakistan Credit Rating Agency Limited (PACRA), VIS Credit Rating
Company Limited (VIS) and Moody's. The counterparties for which external credit ratings were not available
have been assessed by reference to internal credit ratings determined based on their historical information
for any defaults in meeting obligations.

2022 2021
Rating (Rupees in thousand)
Trade debts
Counterparties with external credit rating A1+ 4,434,088 8,074,750
A1 3,952,035 7,548,813
A2 8,012,487 2,496,182
Counterparties without external credit rating
Customers with no default in the past 15,960,688 9,926,961
32,359,298 28,046,706
Short term loans and advances

Counterparties with external credit rating A1+ 1,608,409 642,982
A2 835,166 184,595
Counterparties with no default in the past 3,258,498 1,017,616
5,702,073 1,845,193
Other receivables
Counterparties with no default in the past 676,270 187,311
Current portion of long term investments

Counterparties with external credit rating AAA 41,068 39,831
Short term investments

Counterparties with external credit rating AAA (f) 2,990,719 2,236,244
AA+ (f) 1,503,694 2,000,877
AA(f) 500,652 500,204
A1+ - 34,544,931
A1 - 1,500,000
4,995,065 40,782,256
Interest accrued
Counterparties with external credit rating A1+ 29,853 100,057
A1 - 578
29,853 100,635
Bank balances / instruments

Counterparties with external credit rating A1+ 36,493,951 7,786,592
A1 25 33,656
36,493,976 7,820,248
Long term investments

Counterparties with external credit rating AAA 1,000,000 1,000,000
Long term loans and advances

Receivable from employees with no default in the past 43,969 34,053
Long term deposits

Deposits with counter parties with no default in the past 123,515 181,818
33.3 Financial risk management
33.3.1 Financial risk factors

The Company’s activities expose it to a variety of financial risks: credit risk, liquidity risk and market risk
(including currency risk, interest rate risk and price risk). The Company’s overall risk management policy
focuses on identification and analysis of risks faced by the Company, setting appropriate risk limits and
controls and monitoring thereof. Risk management policies and systems are reviewed regularly in the light of
changes in Company's activities and business environment.
a) Credit risk
Credit risk is the risk of financial loss to the Company on a financial asset if counterparty fails to meet its
contractual obligations and principally arises from trade debts, investments and bank balances. To manage
credit risk, the Company maintains procedures covering the function for credit approvals, granting and
renewal of counterparty limits and monitoring of exposures against these limits. As part of these processes,
the financial viability of all counterparties is regularly monitored and assessed.
Financial assets are considered to be credit-impaired when there is reasonable and supportable evidence that
one or more events that have a detrimental impact on the estimated future cash flows of the financial asset
have occurred. This includes observable data concerning significant financial difficulty of the counterparty;
a breach of contract; it becoming probable that the counterparty will enter bankruptcy or other financial re-
organization because of financial difficulties. Where the Company has no reasonable expectation of recovering
a financial asset in its entirety or a portion thereof for example where all legal avenues for collection of
amounts due have been exhausted, the financial asset (or relevant portion) is impaired.
The Company has not recorded impact of application of ECL model on the financial assets due directly/
ultimately from the GoP in these financial statements. For other financial assets, the management believes
that the impact of ECL is not material as outstanding balances are receivable from counter parties who have
high credit ratings with no history of default.
The carrying amount of financial assets represents the maximum credit exposure. The Company conducts
transactions with the following major types of counterparties:
Customers
Trade debts are essentially due from fertilizer companies, power generation companies, gas distribution
companies and refineries and the Company does not expect these companies to fail to meet their obligations.
Payment terms are agreed with customers which vary from 7 to 45 days.
An impairment analysis is performed at each reporting date in accordance with impairment requirements of
IFRS 9 read with S.R.O. 1177 (I)/2021 dated September 13, 2021 issued by SECP, which has exempted financial
assets due from the GoP from application of IFRS 9 till June 30, 2022. While evaluating the concentration of
risk with respect to trade debts, the Company takes into account that the oil and gas industry in Pakistan is
highly regulated, supported by the GOP and there is no history of default by any of the customers in the past.
The Company considers current and forward looking information on macro economic factors affecting the
ability of the customers to settle the receivables and applies the IFRS 9 simplified approach, read with S.R.O.
1177 (I)/2021 dated September 13, 2021 issued by SECP, to measure the expected credit losses which uses a
lifetime expected loss allowance for trade debts.
Banks, mutual funds and long term investments

The Company limits its exposure to credit risk by placing funds only with approved counterparties that have
a high credit rating. Investments of surplus funds are made in a safe and secure manner while ensuring
optimum return and liquidity. Given these high credit ratings, strict regulations by the State Bank of Pakistan
and no history of default, management does not expect any counterparty to fail to meet its obligations and
accordingly, credit risk is considered very low.

Others
The relationship with the joint operating partners is governed under Petroleum Concession Agreements
(PCAs) signed by the Government of Pakistan, the Company and its respective joint operating partners with
the prior approval of the Ministry of Petroleum and Natural Resources, the Government of Pakistan. Various
avenues are available for the recovery of dues from joint operating partners including engaging the regulator,
right to forfeit working interest, assignment of invoices etc. Based on above and considering there is no
history of default by any counter party, management considers the risk of default as very low. In respect of
deposits, the management does not expect any counterparty to fail to meet its obligations and accordingly,
credit risk is considered very low.
b) Liquidity risk
Liquidity risk is the risk that an entity will encounter difficulty in meeting obligations associated with financial
liabilities.
The Company's approach to managing liquidity risk is to ensure, as far as possible, that it will have sufficient
liquidity to meet its liability when due under both normal and stress conditions, without incurring unacceptable
losses or risking damage to the Company's reputation. The Company maintains sufficient cash and cash
equivalents and the Company's financial assets are in excess of financial liabilities by Rs 62,638,574 thousand
(2021: Rs 68,906,107 thousand).
c) Market risk
Market risk is the risk that changes in market prices will affect the Company’s profit or the value of its
holdings of financial instruments. The objective of market risk management is to manage and control market
risk exposures within acceptable parameters, while optimizing the return on financial instruments.
i) Currency risk
Currency risk is the risk that changes in foreign exchange rates will affect the Company’s profit or the value
of its holdings of financial instruments. The objective of currency risk management is to manage and control
currency risk exposures within acceptable parameters, while optimizing the return on financial instruments.
Exposure to foreign currency risk
The Company’s exposure to currency risk is as follows:
2022 2021 2022 2021

(Rupees in thousand) (US$ in thousand)
Cash and bank balances 9,006,883 4,535,417 43,797 28,651

Other receivables 5,671,110 1,815,367 27,577 11,468
Trade and other payables (5,699,845) (5,103,654) (27,716) (32,240)
Net financial assets 8,978,148 1,247,130 43,658 7,879
The following are significant exchange rates:
Average rate Closing rate

2022 2021 2022 2021
(Rupees) (Rupees)
US$ 1 179.71 160.27 205.65 158.30

Foreign currency sensitivity analysis

A 10 percent variation of the Pak Rupee against the US$ at June 30, would have affected profit or loss after
tax by the amounts shown below. This analysis assumes that all other variables, in particular interest rates,
remain constant.
Change in foreign Effect Effect

exchange on profit on equity
rates after tax
2022
US$ +10% 466,864 466,864
-10% (466,864) (466,864)
2021
US$ +10% 64,726 64,726
-10% (64,726) (64,726)
ii) Interest rate risk

Interest rate risk represents the risk that the fair value or future cash flows of a financial instrument will
fluctuate because of changes in market interest rates.
At the reporting date, the interest rate profile of the Company’s interest-bearing financial instruments was:
2022 2021
Financial assets
Long term investments 1,000,000 1,000,000
Current portion of long term investments 41,068 39,831
Short term investments 4,995,065 40,782,256
Bank balances 35,305,266 7,790,641
41,371,252 49,713,363
Financial liabilities
Long term financing 724,126 -
Current maturity of long term financing 27,981 -
752,107 -
The effective interest rates for the financial assets are mentioned in respective notes to the financial
statements.
Interest rate sensitivity analysis

At June 30, 2022 if interest rates had been 50 basis points higher/ lower and all other variables were held
constant, the Company’s profit after tax for the year ended June 30, 2022 would increase/ decrease by
Rs 1,029,030 thousand (2021: increase/ decrease by Rs 1,263,078 thousand).

iii) Price risk

Price risk represents the risk that the fair value or future cash flows of a financial instrument will fluctuate
because of changes in market prices (other than those arising from interest rate risk or currency risk), whether
those changes are caused by factors specific to the individual financial instrument or its issuer, or factors
affecting all similar financial instruments traded in the market.
The Company does not have any material financial assets and liabilities whose fair value or future cash flows
will fluctuate because of changes in market prices (other than those arising from interest rate risk or currency
risk).
33.3.2 Capital risk management

The Company’s objective when managing capital is to safeguard the Company’s ability to remain a going
concern and continue to provide returns to shareholders and benefits to other stakeholders.
In order to achieve the above objectives, the Company may issue new shares through right issue or raise
financing from financial institutions.
33.4 Fair value of financial instruments

The carrying values of financial assets and liabilities approximate their fair values except for financial assets
due directly/ultimately from GoP for which ECL model has not been applied due to exemption provided by
SECP upto June 30, 2022. Had the exemption not been granted, carrying value of said financial assets would
approximate their fair value.
Fair value hierarchy

Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities
Level 2: inputs other than quoted prices included within Level 1 that are observable for the asset or liability,
either directly (i.e. as prices) or indirectly (i.e. derived from prices)
Level 3: inputs for the asset or liability that are not based on observable market data (unobservable inputs).
The Company has the following financial assets at fair value:
Level 1 Level 2 Level 3 Total

Short term investments - at fair value through

profit or loss
June 30, 2022 4,995,065 - - 4,995,065
June 30, 2021 4,737,325 - - 4,737,325

34. INFORMATION ABOUT JOINT OPERATIONS
The Company's working interests in Pakistan are as follows:

2022 2021
Working interest (%)
OPERATED BLOCKS / FIELDS

Zarghun Field 35.0 35.0
Ziarat Block 60.0 60.0
Karak Block 60.0 60.0
Wali West Block 95.0 95.0
Taung Block 60.0 60.0
Harnai Block 60.0 60.0
Ghauri Block 65.0 65.0
Peshawar East Block 98.2 98.2
Bannu West Block 55.0 55.0
Block 28 95.0 95.0
Khetwaro Block * 51.0 51.0
Sharan Block 60.0 60.0
Nareli Block 39.0 39.0
NON - OPERATED BLOCKS

Hala Block 35.0 35.0
Kohat Block 33.3 33.3
Kohlu Block 30.0 30.0
Kalchas Block 50.0 50.0
Shah Bandar Block 32.0 32.0
Bela West Block 39.0 25.0
North Dhurnal Block 40.0 40.0
Killa Saifullah Block 40.0 40.0
Zindan Block * 35.0 35.0
* The Company has applied for the relinquishment of these blocks and GoP's approval is awaited.

35. DISCLOSURE REQUIREMENTS FOR SHARIAH COMPLIANT COMPANIES AND THE COMPANIES LISTED
ON ISLAMIC INDEX
Description Explanation Rupees in thousand
i) Balance as at June 30, 2022:
Assets
Long term investments including Placed under interest arrangement 1,041,068
current portion - TFCs Placed under Shariah permissible arrangement -
1,041,068
Interest accrued Placed under interest arrangement 28,778

Placed under Shariah permissible arrangement 1,075
29,853
Short term investments Placed under interest arrangement 4,744,365

4,995,065
Bank balances / instruments Placed under interest arrangement 35,425,196

Placed under Shariah permissible arrangement 1,068,780
36,493,976
Liabilities
Long term financing including current portion Obtained under interest arrangement 752,107
Obtained under Shariah permissible arrangement -
752,107
ii) Transactions for the year ended June 30, 2022
Interest income on long term investments - TFCs Placed under interest arrangement 91,537
Placed under Shariah permissible arrangement -
91,537
Interest income on short term investments Placed under interest arrangement 877,925
1,096,073
Income on mutual funds Placed under interest arrangement 470,156

498,468
Interest income on bank deposits Placed under interest arrangement 825,633

854,931
Borrowing costs paid on long term financing Obtained under interest arrangement 15,669
Obtained under Shariah permissible arrangement -
15,669
iii) Names of Company's shariah compliant banks

1. Askari Bank Limited (Islamic)
2. Bank Alfalah Limited (Islamic)
3. Meezan Bank Limited
4. Al Baraka Bank (Pakistan) Limited
5. Bank Islami Pakistan Limited
6. Dubai Islamic Bank
7. Bank of Punjab
Disclosures other than above are not applicable on the Company.
36. REMUNERATION OF CHIEF EXECUTIVE, DIRECTORS AND EXECUTIVES

The aggregate amount charged in these financial statements as remuneration and allowances including all
benefits to key management personnel (chief executive and directors) and executives of the Company is as
follows:
2022 2021
Chief Chief
Executive Executives Executive Executives
Managerial remuneration 34,839 1,945,885 22,964 800,621

Company's contribution to provident fund 3,484 174,173 2,296 68,561
Company's contribution to / (receivable
from) gratuity fund 4,023 270,668 3,570 (565,648)
Housing and utilities 19,161 1,366,731 13,385 809,963
Other allowances and benefits - 1,072,168 5,168 1,510,141
Bonuses 23,436 2,033,825 22,253 1,143,030
84,943 6,863,450 69,636 3,766,668
Number of persons including those who

worked part of the year 1 597 2 317
The above were also provided with medical facilities and post retirement leave benefits. The Chief executive
and certain executives were provided with free use of Company maintained cars, residential telephones and
use of club facilities. Executives based at plant site, Daharki, are also provided with children schooling and
subsidized club facilities.
Non-executive directors were paid aggregate fee and reimbursable expenses of perquisite nature of
Rs 68,434 thousand (2021: Rs 61,167 thousand). As at June 30, 2022, total directors were 11 (2021: 14).
2022 2021
37. NUMBER OF EMPLOYEES

Total number of employees as at year end 1,559 1,293
Average number of employees during the year 1,414 1,270

38. BALANCES AND TRANSACTIONS WITH RELATED PARTIES AND ASSOCIATED COMPANIES
The related parties of the Company comprise of entities having significant influence over the Company,
associates, employees' retirement funds and key management personnel. Key management personnel are
those persons having authority and responsibility for planning, directing and controlling the activities of the
Company. The Company considers its MD/CEO and Directors to be key management personnel. Associated
companies have been identified in accordance with the requirements of the Companies Act, 2017.
Transactions and balances with related parties and associated companies, other than below, have been
disclosed in relevant notes to these financial statements.
Transactions for year

ended June 30,
2022 2021
Name and nature of relationship Nature of transaction (Rupees in thousand)
Related parties
Entities with significant influence
over the Company
Fauji Foundation * Dividend paid 7,249,537 3,598,310
Cost recharge expense 249,736 248,941
Corporate Social Responsibility 409,620 153,270
Oil and Gas Development Company
Limited (OGDCL)* Dividend paid 3,624,768 1,799,155
Employees' retirement funds

Gratuity funds (Management
and Non-Management) Company's contribution 126,539 294,597
Provident fund Company's contribution 176,883 112,030
Associated companies
Askari Bank Limited Interest income 575,698 473,603
Fauji Fertilizer Company Limited Gas sale 22,225,373 18,384,834
Foundation Power Company
Daharki Limited Gas sale 3,439,580 2,367,587
Fauji Cement Company Limited Crude sale 94,521 73,448
Fauji Fertilizer Bin Qasim Limited Crude sale 3,338 -
Foundation Gas LPG sale 5,001 4,550
Balance as at June 30,

2022 2021
Name and nature of relationship Nature of balance (Rupees in thousand)
Related parties
Entities with significant influence
over the Company
Fauji Foundation * Cost recharge payable 60,524 61,858
Oil and Gas Development Company Payable to joint operating partner 1,950,509 388,709
Limited (OGDCL)* Receivable from joint operating partner 1,608,409 642,982
Key management personnel

Managing Director / CEO Advance as per Company's policy - 12,020
Associated companies
Askari Bank Limited Bank balances / instruments 24,289,285 5,316,603
Short term investments - 5,000,000
* These entities are also associated entities by virtue of common directorship.
39. SUMMARY OF SIGNIFICANT TRANSACTIONS AND EVENTS

Significant transactions and events that have affected the Company’s financial position, performance and
cash flows during the year include:
i) Net sales increased on account of increased production and higher prices prevailed during the year.
ii) Fixed assets representing property, plant & equipment and exploration, development & production
assets have increased by more than 50% over the year, reflecting the enhancement of asset base of
the Company.
40. NON - ADJUSTING EVENTS AFTER THE STATEMENT OF FINANCIAL POSITION DATE
The Board of Directors in its meeting held on August 04, 2022 has proposed final cash dividend for the year
ended June 30, 2022 @ Rs 62 per share, for approval of the shareholders in the Annual General Meeting.

41. GENERAL
41.1 Impact of COVID-19 on the financial statements

The Company has taken appropriate measures to keep its human resource and assets safe and secure.
Further, the Company is continuously monitoring the situation to counter act the changed environment.
The management believes that there is no significant financial impact of COVID-19 on the carrying amounts
of assets and liabilities or items of income or expenses, as disclosed in these financial statements. The
management has evaluated and concluded that there are no material implications of COVID-19 that require
specific disclosures in these financial statements.
41.2 Revenue from major customers constitutes 94% of the total revenue during the year ended June 30, 2022
(2021: 95%).
41.3 Capacity and Production
Product Unit Production for the year
Gas MMSCF 283,173

Crude oil Barrels 458,509
LPG Metric ton 32.20
Due to the nature of operations of the Company, installed capacity of above products is not relevant.
41.4 All investments out of Provident Fund and Gratuity Funds have been made in accordance with the provisions
of section 218 of the Companies Act, 2017 and the conditions specified for this purpose.
41.5 These financial statements have been authorized for issue by the Board of Directors of the Company on
August 04, 2022.

Definition and Glossary of Terms
2D Seismic
Exploration method of sending energy waves or sound waves into the earth and recording the wave reflections
to indicate the type, size, shape, and depth of subsurface rock formations. 2-D seismic provides two dimensional
information.
3D Seismic
Exploration method of sending energy waves or sound waves into the earth and recording the wave reflections to
indicate the type, size, shape, and depth of subsurface rock formations. 3-D seismic provides three dimensional
information.
Abbreviations
2D/3D Three-Dimension / Two-Dimension EIA Environmental Impact Assessment

2C Contingent Resources EMS Environmental Management System
2P Proven and Probable Reserves EOGM Extraordinary General Meeting
ACCA Association of Certified Chartered Accountants EPA Environmental Protection Agency
ADNOC Abu Dhabi National Oil Company EPS Earnings Per Share
AFIC Armed Forces Institute of Cardiology EPZ Export Processing Zones
AGM Annual General Meeting ERM Enterprise Risk Management
ALARP As Low As Reasonably Practicable EWT Extended Well Test
ATL Active Tax Payers List FBR Federal Board Of Revenue
B2B Business to Business FCA Fellow of Chartered Accountants
BBLS Barrels FF Fauji Foundation
BCF/BSCF Billion Cubic Feet/Billion Standard Cubic Feet FFBL Fauji Fertilizer Bin Qasim Limited
BESOS Benazir Employees Stock Option Scheme FFC Fauji Fertilizer Company Limited
BI Business Intelligence FLNG Floating Liquefied Natural Gas
BOE Barrel of Oil Equivalent FPCCI Federation of Pakistan Chambers of Commerce
BOPD/BPD Barrels of Oil Per Day/Barrels Per Day & Industry
BTU British Thermal Unit FY Financial Year
CAPEX Capital Expenditure G&G Geological and Geophysical
CATS Cross Application Timesheets GDP Gross Domestic Product
CCG Code of Corporate Governance GDS Gas Development Surcharge
CCR Central Control Room GENCO Generation Company
CDC Central Depository Company of Pakistan Limited GHG Greenhouse Gas
CDRS Comprehensive Disaster Response Services GHPL Government Holdings (Pvt) Ltd
CEO Chief Executive Officer GIDC Gas Infrastructure Development Cess
CFO Chief Financial Officer GOP Government of Pakistan
CGS Chief of General Staff GPA Gas Wellhead Price Agreement
CGU Cash Generating Unit GTH Goru B, Tipu, Habib Rahi Limestone
CIM Central Inspectorate of Mines HAZOP Hazard and Operability Study
CMF-I/CMF-II Central Manifold-I & II HI (M) Hilal-i-Imtiaz (Military)
CNIC Computerized National Identity Card HP Horse Power
CNPC China National Petroleum Corporation HPHT High-Pressure High-Temperature
COO Chief Operating Officer HR&R Human Resource and Remuneration
COVID-19 Coronavirus Disease 2019 HRL Habib Rahi Limestone
CSR Corporate Social Responsibility HSE Health, Safety and Environment
D&PL Development and Production Lease HSEQ Health, Safety, Environment and Quality
DGPC Directorate General of Petroleum Concessions IAS International Accounting Standard
DRP Disaster Recovery Plan IASB International Accounting Standards Board
DST Drill Stem Test IBA Institute of Business Administration
DTP Directors' Training Programme IBAN International Bank Account Number
DVD Digital Video Disc ICAP Institute of Chartered Accountants of Pakistan
E&E Exploration & Evaluation ICCI Islamabad Chamber of Commerce and Industry
E&P Exploration and Production ICMAP Institute of Cost and Management Accountants
EAD Exposure at Default of Pakistan
EBITDA Earnings Before Interest, Taxes, Depreciation, and IEA International Energy Agency
Amortization IEE Initial Environmental Examination
ECC Economic Coordination Committee IFRS International Financial Reporting Standards
ECL Expected Credit Loss IMS Integrated Management System
INGOS International Non-governmental Organizations POL Pakistan Oilfields Limited

IOGP International Association of Oil & Gas Producers PPIS Pakistan Petroleum Information Service
IRE Initial Recognition Exemption PPL Pakistan Petroleum Limited
ISAS International Standards on Auditing PSA Participation & Shareholders Agreement
ISE Islamabad Stock Exchange PSER Process Safety Event Report
ISMS Information Security Management System PSI/PSIG Pounds Per Square Inch Gauge
ISO International Standards Organization PSO Pakistan State Oil
IT Information Technology PSSR Pre-Startup Safety Reviews
JD Juris Doctor PSX Pakistan Stock Exchange
JV/JVP Joint Venture/Joint Venture Partner Q&A Questions and Answers
KMI KSE Meezan Index Q1/Q2/Q3 Quarter 1/2/3
KP Khyber Pakhtunkhwa RO PLANT Reverse Osmosis Plant
KPIS Key Performance Indicators RRR Reserves Replacement Ratio
KPOGCL Khyber Pakhtunkhwa Oil & Gas Company Limited SAP Systems, Applications and Products
KSE Karachi Stock Exchange SBP State Bank of Pakistan
LEAS Law Enforcement Agencies SCADA Supervisory Control and Data Acquisition
LGD Loss Given Default SCM Supply Chain Management
LNG/RLNG Liquefied Natural Gas/Re-Liquefied Natural Gas SCP Supreme Court of Pakistan
LPG Liquefied Petroleum Gas SDGS Sustainable Development Goals
LSE Lahore Stock Exchange SDV Shutdown Valve
LTIF Lost Time Injury Frequency SECP Securities and Exchange Commission of Pakistan
LUMS Lahore University of Management Sciences SEED Skills Enhancement & Employee Development
M&A Mergers and Acquisitions SEHCL Sindh Energy Holding Company Limited
MAP Management Association of Pakistan SEL Saif Energy Limited
MBA Master of Business Administration SGPC Sachal Gas Processing Complex
MD Managing Director SHRM Society for Human Resource Management
MD Managing Director SI Sitara-i-Imtiaz
MDG Master Data Governance SML Sui Main Limestone
MDU Mari Drilling Unit SNGPL Sui Northern Gas Pipelines Limited
MGCL Mari Gas Company Limited SOES State-owned Enterprises
MMBOE Million Barrels of Oil Equivalent SOPS Standard Operating Procedures
MMD Mari Mobile Dastarkhawan SOS Save Our Souls
MMSCF/D Million Standard Cubic Feet/Day SPE Special Purpose Entity
MOC Management of Change SQ. KM Square Kilometers
MOU Memorandum of Understanding SRO Statutory Regulatory Order
MPCL Mari Petroleum Company Limited STEP Special Talent Exchange Program
MSD Mari Services Division SUL Sui Upper Limestone
MSPC Mari Seismic Data Processing Center SWOT Strengths, Weaknesses, Opportunities & Threats
MSU Mari Seismic Unit
TB Tuberculosis
NEBOSH National Examination Board in Occupational
TCF Trillion Cubic Feet
Safety and Health
NGOS Non-governmental Organizations TCF The Citizen Foundation
NITL National Investment Trust Limited TERF Temporary Economic Relief Facility
NRL National Resources (Pvt) Limited TFCS Term Finance Certificates
NTN National Tax Number TPDL Tullow Pakistan (Developments) Limited
NUST National University of Science & Technology TRCF Total Recordable Case Frequency
OBM Oil Based Mud UAE United Arab Emirates
OGDCL Oil & Gas Development Company Limited UEP United Energy Pakistan
OGRA Oil & Gas Regulatory Authority UK United Kingdom
OICCI Overseas Investors Chamber of Commerce and UN United Nations
Industry
USA United States
OPL Ocean Pakistan Limited
VDI Virtual Desktop Infrastructure
P/E Price to Earnings Ratio
VIS Vital Information Services (Pvt.) Ltd
PACRA Pakistan Credit Rating Agency
WAPDA Water and Power Development Authority
PAPCO Pak-Arab Pipeline Company Limited
WHFP Wellhead Flowing Pressure
PARCO Pak-Arab Refinery Company Limited
YOY Year-on-Year
PBC Pakistan Business Council
ZPCL Zaver Petroleum Corporation (Pvt) Limited
PCAS Petroleum Concession Agreements
PD Probability of Default
PICG Pakistan Institute of Corporate Governance
PIOL Pakistan International Oil Limited
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Tel:051-111-410-410, Fax:051-2352859
AFFIX
CORRECT
POSTAGE
The Company Secretary

21–Mauve Area, 3rd Road,
Sector G–10/4,
ISLAMABAD.
Form of Proxy
21 – Mauve Area, 3rd Road, G–10/4, Islamabad
Tel: 051-111-410-410, Fax: 051-2352859
I/We of , being a member(s) of
Mari Petroleum Company Limited and holder of Ordinary Shares as per the
Share Register Folio / CDC Account No. hereby appoint
Mr. of or failing him
Mr. of or failing him
Mr. of as my / our Proxy in my / our absence
to attend and vote for me / us, and on my / our behalf at the 38th Annual General Meeting of the Company to be held on Wednesday,
September 28, 2022 at 21-Mauve Area, 3rd Road, Sector G-10/4, Islamabad and at any adjournment thereof.
Signed under my / our hand(s) this day of 2022. Please affix ap-
propriate Revenue
Stamp
Signature of Member
Name:
Signature of Proxy: Folio/CDC A/c No.
WITNESSES:
1. Signature: 2. Signature:
Name: Name:
Address: Address:
CNIC or CNIC
Passport No. Passport No.
NOTE:
1. A Member entitled to attend and vote at the above meeting may appoint a person/representative as Proxy to attend and vote
on his behalf at the Meeting. The instrument of Proxy in order must be received at the Registered Office of the Company at
21-Mauve Area. 3rd Road, Sector G-10/4, Islamabad not less than 48 hours before the time of holding of the meeting.
2. The Company shareholders in Central Depository Company of Pakistan are requested to attach an attested photocopy of their
National Identity Card or Passport with this Proxy Form before submission to the Company.
3. In case of corporate entity, the Board of Directors resolution/power of attorney with specimen signature shall be submitted
with this Proxy Form before submission to the Company.
FORM FOR VIDEO CONFERENCE FACILITY
I/We of , being member(s) of
Mari Petroleum Company Limited and holder of Share(s) as per
Registered Folio/CDC Account No. , hereby opt for
Video Conference facility at
Signature of member(s)
AFFIX
CORRECT
POSTAGE
The Company Secretary

21–Mauve Area, 3rd Road,
Sector G–10/4,
ISLAMABAD.

MPCL Ar 2022 SP

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Cover Story

Sachal Gas Processing Complex-Mari Gas Field-Daharki, Sindh

Mari Gas Field Features

• Pakistan’s largest remaining gas reserves

Rs 95.13 billion Rs 33.06

(2021: Rs 29.97 billion)

130.00 45.000 340.0

113.75 39.375 297.5

97.50 33.750 255.0

81.25 28.125 212.5

65.00 22.500 170.0

48.75 16.875 127.5

36.91 MMBOE 283.17 BSCF 458,509 Barrels

(2021: 35.87 MMBOE) (2021: 269.26 BSCF) (2021: 457,205 Barrels)

50.00 400 800000.000000

ENERGY GAS 133333.333333 OIL

Sustainable Shareholders' Return

MPCL's Share Price Performance

KSE 100 Index MPCL

With YoY increase of 14%, MPCL Share Price outperformed

Rs 41.01 billion 32 % 642 MMBOE

(2021: Rs 22.86 billion) (2021: 200%) (2021: 612 MMBOE)

Completed Seismic Data

Aggressive Drilling Plan of last two years

Contribution to the National Economy

US$ 3 billion Rs 77.62 billion

(2021: US$ 2 billion) Uplifting living (2021: Rs 63.07 billion)

(2021: Rs 0.52 billion)

Saved over Spent around Rs 6

First Ever Third

Our Human Capital

Seismic Activities - Bannu West Block, KP

Seismic Activities - Block 28, Balochistan

Seismic Data Processing Center - Head Office, Islamabad

MD's Visit to Bannu West Block - KP

Our Human Capital

Pressure Setting for Low Pressure Separator

Seismic Activities - Taung Block, Sindh

Gas Flow Recorder - Halini Oil Field, Karak Block, KP/Punjab

Routine Check-up of Flow Computer - Sujawal Block, Sindh

Inspection of Carrier Gas Pressure at Gas Analyser Unit

Our Human Capital

CNPC Chinese Delegation Visits MPCL Head Office, Islamabad

Discussion on Prospectivity Zone Map - Head Office, Islamabad

Presentation on G&G - Head Office, Islamabad

Our Human Capital

HSE Safety Drill - Head Office, Islamabad

World Environment Day - Islamabad

Noor-e-Sehar Special Education School - Daharki, Sindh

MPCL Head Office Buildings - Islamabad

Notice of Annual General Meeting

2. To approve, as recommended by the Board of Directors, the payment of

2. Virtual Participation in the AGM Proceedings meeting. The individual members

CDC Investor Account Holders will

3. Attending AGM in person or through Proxy 4. Payment of Cash Dividend

Notice of Annual General Meeting

7. Consent for Video Conference

37th Annual General Meeting - Head Office, Islamabad

Product Total Output MPCL’s Output MPCL’s Share