Mari Energies Limited (“Mari” or the Company”) is a public limited company incorporated in Pakistan and was listed on the Pakistan Stock Exchange Limited in 1994.

Mari traces its origins to the discovery of the Mari Gas Field in 1957 by the Pakistan Stanvac Petroleum Project (PSPP), a joint venture between Esso Eastern Incorporated (USA) with a 51% stake and the Government of Pakistan holding 49%. In 1983, Esso Eastern divested its entire stake to the Fauji Foundation, paving the way for the establishment of Mari Gas Company Limited (MGCL) in 1984. The shareholding structure initially comprised Fauji Foundation and the Government of Pakistan each holding 40%, while Oil & Gas Development Company Limited (OGDCL) held the remaining 20%.

In 1985, MGCL formally took over the assets, liabilities, and operational management of the Mari Field, commencing operations under the Mari Gas Wellhead Price Agreement (Mari GPA). The company reached a pivotal milestone in 1994 when the Government of Pakistan divested 50% of its shares and the Company became listed on all stock exchanges of Pakistan.

Following the amendment in Mari GPA in 2001 allowing MGCL to broaden its operational horizon by acquiring oil and gas exploration licenses outside Mari field, the acquisition of Ziarat Block in January 2003 marked its transition from a field-specific gas seller to an exploration and production entity. Reflecting its diversified operations and growth, the company was rebranded as Mari Petroleum Company Limited (MPCL) in 2012.

In 2013 the Company set up its own inhouse services division comprising of a 3D seismic data acquisition unit, a 2D/3D seismic data processing center and a fleet of three onshore drilling rigs, thus becoming a fully integrated E&P company.

Since its inception, the Company had been operating on a cost-plus fixed return formula under Mari GPA 1985. Pursuant to consistent efforts by the Management, a major milestone was achieved in November 2014 when Economic Coordination Committee of the Cabinet approved replacement of the Mari GPA with an international crude oil price linked market-oriented gas price formula. This allowed the Company to operate on commercial and competitive terms to realize its full potential.

In October 2015, the Company opted for conversion of Mari D&P lease to 2012 Petroleum Policy which enabled it to qualify for the price incentives offered by the Government on production enhancement initiatives and new exploratory efforts. With rigorous efforts of the management, in early 2021 the cap on company’s dividend distribution was removed by the government, enabling the Company to declare Dividends in accordance with industry best practices.

In August 2021, Mari, together with other leading E&P companies in Pakistan, jointly established the Pakistan International Oil Company (PIOL), which was awarded Offshore Block 5 in Abu Dhabi by the UAE government, which opened international investment avenues for the Company. Following execution of the PCA, the project has formally transitioned into the development phase and it is progressing in line with the approved development plan. Exploration activities are also in progress as per the approved work program.

In recent years, Mari significantly accelerated growth through major discoveries, including Shewa-1 (2022), Ghazij-1 (2023), Maiwand X-1 (2024), Shawal-1 (2024), Spinwam-1 (2025), and Soho-1 (2025). Commercial gas production from the Shewa Field commenced in March 2025, marking the first-ever production in North Waziristan.

Parallel to upstream growth, Mari diversified into minerals and technology through the establishment of Mari Minerals (2023), Mari Technologies (2024), and its majority-owned subsidiary Sky47 Ltd for data center development.

Reflecting its broadened scope and long-term strategy, the Company was renamed Mari Energies Limited in January 2025, signifying its evolution from a single-field gas producer into a diversified, multi-sector energy and technology platform.

Mari’s core activities include oil and gas exploration and production. The gas produced is supplied to fertilizer manufacturers, power plants, and gas distribution companies, while crude oil and condensate are delivered to refineries and other commercial customers for further processing.

The Company currently holds 72 EL's (including 47 onshore and 25 offshore) and 15 D&PL's. Its exploration and production assets span all four provinces of Pakistan, in addition to an offshore block in Abu Dhabi, where it is part of a consortium of leading Pakistani E&P companies. Mari through its integrated services division also provides E&P services such as 2D/3D seismic data acquisition, seismic data processing, gravity and magnetic surveys, drilling and mud logging services. In addition to its petroleum footprint, Mari along with its subsidiary Mari Minerals holds three (03) mining exploration licenses in the Chagai district of Balochistan. Meanwhile, its technology subsidiary, Mari Technologies, is currently developing state-of-the-art data centers in Islamabad and Karachi.

The Company boasts a robust ownership structure, with Fauji Foundation holding a 40% stake. The Government of Pakistan and Oil & Gas Development Company Limited (OGDCL) each maintain a 20% share, while the remaining 20% is publicly traded on the Pakistan Stock Exchange, distributed among corporate and individual investors.

Mari's ownership structure underscores its strong institutional and sovereign patronage ensuring long term strategic stability. Since the Company’s inception, its shareholders have remained consistent—a testament to their shared vision and alignment with the Company’s objectives. The Company's sustained success is largely attributed to its stable and committed ownership, which continues to drive its growth and innovation and has enabled it to diversify across various segments of the energy value chain.

The Company’s key stakeholders form a dynamic partnership that leverages their combined expertise and resources, empowering Mari to drive sustainable growth, foster innovation, and contribute to Pakistan's energy sector development. Fauji Foundation (FF) exemplifies exceptional business acumen through its strategic investments across diversified sectors, including agriculture, infrastructure, energy, food, and financial services. This broad portfolio not only funds extensive welfare and social initiatives but also underscores FF’s robust financial foundation, visionary leadership, and adept management. The Foundation's strategic approach to investments and its long-term vision significantly contribute to Mari’s stability and ability to pursue its strategic objectives.

The Government of Pakistan (GoP) plays a pivotal role by ensuring policy alignment and national support, fostering a conducive environment for ensuring stability in the energy sector hence allowing Mari to meet its strategic objectives. Oil & Gas Development Company Limited (OGDCL), as Pakistan’s leading exploration and production (E&P) company, significantly augments Mari’s capabilities with its technical expertise and industry leadership. With a commanding market share—46% in crude oil production, 28% in natural gas, and 37% in LPG—OGDCL provides unmatched operational strength.

The financial strength of Fauji Foundation (FF) as the largest shareholder, coupled with its management right, along with GoP and OGDCL as key shareholders of Mari, constitutes a critical pillar supporting the Company’s success and growth trajectory. Mari benefits from substantial hydrocarbon reserves, a robust equity position, cash reserves by positioning itself with enhanced operational freedom and flexibility. This financial strength supports strategic investments in adjacent sectors such as mining, renewables and technology, aligning with the company's long-term growth objectives and diversification strategies.

In June 2025, a new Board of Directors was elected for a three-year term through a transparent process fully compliant with applicable laws and best practices. The Board now comprises eleven members, including the Chief Executive Officer as the sole executive director. Its composition reflects the Company’s shareholding structure, ensuring balanced representation and alignment with stakeholder interests.

Fauji Foundation is represented by four directors, while the Government of Pakistan and OGDCL each have two directors. The Board also includes three independent directors, two of whom are female and chair key committees, reinforcing objective oversight and strong governance. Overall, three out of five Board Committees are now led by independent directors, highlighting the Company’s commitment to balanced decision-making and corporate governance.

The members of board of director bring valuable experience from their respective fields, which enables strategic oversight and strong governance for the Company. The Board has been instrumental in driving the Company’s growth and progress, implementing initiatives that emphasize sustainability and innovation across the Company. Lt Gen (Retd) Anwar Ali Hyder: As Chairman of Fauji Group companies, including Mari, and the Managing Director & CEO of Fauji Foundation since April 2024, Lt Gen Anwar Ali Hyder, HI(M) (Retd), brings a wealth of experience in strategic planning, organization, and administration. His distinguished career includes serving as the Principal Staff Officer to the Chief of Army Staff in the role of Adjutant General of Pakistan. He has also contributed to national economic initiatives as a member of the Apex Committee of the Special Investment Facilitation Council (SIFC). His exceptional leadership and expertise play a crucial role in shaping Mari's strategic vision. His dedication to service has been recognized with the Chief of Army Staff Commendation Card and the esteemed Hilal-e-Imtiaz (Military) awarded by the President of Pakistan.

The Board comprises a distinguished group of seasoned professionals with expertise spanning a broad spectrum of industries, including energy, oil and gas, finance, governance, and public administration. These leaders bring unparalleled knowledge in fiscal and macroeconomic policy, energy sector development, corporate governance, strategic leadership, mergers and acquisitions, operational excellence, and technical innovation.
Board members hold prominent positions in reputable organizations and actively contribute to Mari’s governance by serving on key committees, such as Audit, HR&R, Technical, Investment, and ESG. Their collective experience and diverse perspectives provide robust oversight, strategic guidance, and innovative solutions, driving Mari’s growth, operational efficiency, and long-term sustainability in the energy sector and beyond.

Mari has established a governance structure founded on tiered oversight and aligned with industry best practices. In compliance with the Code of Corporate Governance, the Board of Directors (BoD) plays a pivotal role in providing strategic direction while ensuring the implementation of rigorous risk management and internal control systems. To further enhance governance, the BoD has established five specialized committees: the Audit Committee, Human Resource & Remuneration Committee (HR&R), Technical Committee, Investment Committee, and Environmental, Social, and Governance (ESG) Committee. These committees are instrumental in reviewing key matters and providing recommendations to the BOD to support sound and effective governance. In FY25, the BoD convened eight meetings whereas the Audit Committee, HR&R Committee and Technical Committee each held five meetings, while the Investment and ESG Committees convened twice.

The Board of MariEnergies undergoes an annual performance evaluation to ensure continuous improvement, with findings used to take appropriate actions, including revising policies where necessary.

To support proactive risk management, the Board has implemented an Enterprise Risk Management (ERM) Policy, providing a structured framework for identifying, assessing, and managing risks within the Company’s defined risk appetite.

As part of its commitment to governance excellence, the Company engages an independant party to conduct an independent third-party assessment of the Board, its committees, and individual directors. This evaluation helps identify opportunities to enhance governance practices and strengthen Board effectiveness.

As a publicly listed company, Mari’s board is committed to maintaining the highest standards of transparency, accountability, and ethical conduct. To ensure effective communication with stakeholders, the Company prepares timely financial statements with all necessary disclosures in compliance with Pakistan Stock Exchange (PSX) Rules and Securities & Exchange Commission (SECP) Regulations. M/s A.F. Ferguson & Co., Chartered Accountants, serve as the Company’s external auditors.

The Company operates with a comprehensive and streamlined organizational structure, encompassing several key divisions/departments which are led by senior, highly qualified professionals. These divisions are supported by experienced teams to ensure seamless operations. In addition to key technical departments, most of the support departments also report directly to the Managing Director/Chief Executive Officer (MD/CEO), which ensures streamlined decision-making, enhances agility, and fosters greater alignment with the Company’s strategic objectives.

Mr. Faheem Haider serves as the Chief Executive Officer (CEO) and Managing Director (MD) of the Company since August 2020. With over 33 years of international experience in the oil and gas industry, Mr. Haider has held various technical and leadership positions with prominent companies, including Union Texas Petroleum, OMV Pakistan Exploration GmbH, Helix RDS Limited UK, BG Group Plc UK, and Neptune Energy Group UK (formerly known as Engie E&P International).

Mr. Faheem also serves as MD/CEO of Mari Minerals (Pvt) Limited and non executive director on the boards of Pakistan International Oil Limited (UAE), Mari Technologies Limited and SKY47 Limited.

Rest of the management team comprises of seasoned professionals having significant international and local experience in the oil and gas industry. In the recent past the company has been able to attract talent in key operational areas to further strengthen its technical and operational teams. Management team has also implemented international best practices to run the business in a sustainable manner.

Mari ensures the efficient operations of its activities through the clear segregation of duties, well-defined reporting lines, and a structured hierarchical framework, all of which support informed decision-making. The Board of Directors and Management maintain a proactive stance on risk management, engaging in regular discussions to address emerging risks.

The Company’s Enterprise Risk Management Program is aligned with the ISO 31000:2018 Risk Management Guidelines. It also adheres to the Institute of Internal Auditors (IIA) "Three Lines of Defense" model, providing comprehensive risk assurance at all organizational levels.

Key Risk Indicators (KRIs) are developed in accordance with the Company’s Risk Appetite Statements and are consistently monitored to identify potential breaches. Any breaches are promptly reported to the Board along with a detailed mitigation plan, ensuring effective governance and reinforcing the Company’s organizational resilience.

Mari emphasizes collaboration across its technical and functional departments, which facilitates the selection and implementation of advanced information systems. The Exploration and Reservoir departments utilize industry-leading Geological and Geophysical (G&G) interpretation and reservoir modeling software.

To streamline its core business processes and optimize performance and productivity, the Company has automated and integrated its key workflows using the latest ERP solutions. The ERP software is designed to manage and integrate functions across core business modules, including finance, human resources, supply chain, information technology and other key areas within a single system. This integration ensures seamless data flow and operational efficiency across the organization.

Keeping in view the significance of management’s support towards the success of an ERP project, Mari follows a systematic approach towards building use cases and conducting feasibility analysis for incorporating new and improved modules within its ERP toolkit. Management actively supports the effective implementation and continuous refinement of the ERP system, ensuring alignment with the Company's strategic objectives.

The adoption of the latest ERP features and functionality is undertaken by the Company after thorough testing, skills development, user training and through a comprehensive change management process to mitigate the risks generally associated with ERP projects.

The Company has internally developed and relies of state-of-the-art Dashboards that are deployed as tools for the management to monitor the key business data to have transparency and visibility.

Mari has developed a robust Internal Control Framework with the following objectives: (i) enhancing the efficiency and effectiveness of operations, (ii) ensuring the reliability of internal and external reporting, (iii) ensuring compliance with applicable laws, regulations, and policies, and (iv) safeguarding the Company’s assets. Regular risk-based internal and external audits are conducted at all Mari locations to assess compliance and evaluate the effectiveness of the internal control procedures.

Pakistan’s oil and gas reserves showed a strong recovery in the first half of 2025, with crude oil reserves rising by 3% to 239.6 million barrels and natural gas reserves increasing by 5% to 19 trillion cubic feet. This marks a reversal of recent stagnation and reinforces the country’s long-term energy outlook. The growth was driven largely by Mari, whose operated fields contributed nearly 1 TCF of additional gas through new discoveries. Other exploration and production companies, including OGDCL, PPL, and MOL, also added volumes through select discoveries. These additions highlight the effectiveness of the Company exploration strategy and demonstrate the sector’s resilience and commitment to maximizing national resources. Policy initiatives, such as the updated Petroleum and Tight Gas frameworks, further support exploration and development, providing cautious optimism for sustainable energy supply.

Despite these gains, the sector retains a medium to low business risk profile, balancing significant resource potential against operational challenges such as reserve depletion, exposure to circular debt, and the complexities of developing unconventional and offshore resources.

On the consumption side, natural gas remains a core component of Pakistan’s primary energy mix, alongside imported RLNG. Gas demand is concentrated in the power, household, and fertilizer sectors, which together account for the majority of usage. Total gas consumption declined from 25.4 million MT in FY24 to 24.0 million MT reflecting constrained supply and softening household and industrial demand. Fertilizer and power offtake, however, remained relatively stable, indicating limited substitution options.

During FY25, Mari remained Pakistan’s largest gas producer, contributing 322,973 MMSCF, or 31% of national gas output, and 661,167 barrels of oil and condensate, representing 2.9% of total national output. With a net daily production of 107,193 barrels of oil equivalent in FY25, Mari ranks among the top E&P companies and holds the second-highest reserves base in the country, ahead of most domestic peers including MOL and PPL.

Mari’s proved and probable (2P) reserves grew by 110 MMBOE, achieving a Reserve Replacement Ratio (RRR) of 278%, while total estimated reserves and resources (2P + 2C) reached 952 MMBOE, a 17% increase over the previous year, extending the reserve-to-production ratio to 20 years. Operational growth was driven by discoveries and upward revisions across Mari Deep, HRL, Shewa, Ghazij, and frontier Waziristan blocks, adding close to 1 TCF of gas. Advanced reservoir management, including horizontal drilling and smart field technologies, optimized production from mature fields, reinforcing Mari’s strategic role as a key supplier of Pakistan’s gas.

Mari also strengthened its regional footprint through the Pakistan International Oil Limited (PIOL) joint venture in Offshore Block 5, Abu Dhabi, where Mari holds a 25% stake alongside PPL, OGDCL, and GHPL. Under the PCA with ADNOC, PIOL retained 40% while ADNOC holds 60% in the development phase. Exploration Period-1 delivered four wells, including one exploratory and three appraisal wells.

Domestically, Mari expanded its portfolio bringing its total to 72 ELs (including 47 onshore and 25 offshore), and 15 D&PLs, covering 155,756 sq. km.

Alongside hydrocarbons, Mari Energies continues to diversify into minerals and technology through its wholly owned subsidiaries, Mari Minerals (Pvt) Ltd and Mari Technologies Ltd, reinforcing its leadership in resource development and digital transformation.

In addition, Mari Energies has executed a Joint Venture Agreement with Ghani Chemical Industries Ltd (GCI) to establish a Project Company for processing vent/exhaust gas from the Sachal Gas Processing Complex (SGPC), Daharki. Under this arrangement, Mari Energies holds 51% equity, with GCI holding the remaining 49%. The project aims to recover hydrocarbons from the exhaust gas for the production of liquefied natural gas (LNG) and industrial/food-grade carbon dioxide (CO₂). This initiative is expected to reduce greenhouse gas emissions while generating economic value for stakeholders.

During FY25, the Company’s hydrocarbon sales reached 39.13 MMBOE, generating revenues of PKR 177,097 million, supported by successful operational activities, capacity enhancements, and production from newly discovered reservoirs. Despite this, the Company experienced a decline in net sales and profitability, primarily due to factors beyond its control. Key contributors included the imposition of a 15% Additional Wellhead Levy on Mari Field sales (PKR 14.2 billion), a decline in global oil prices and PKR appreciation against the USD (PKR 5.2 billion impact), and forced gas curtailments by distribution companies, collectively affecting the Company’s revenue and profitability.

A key driver of Mari robust financial performance has been the strengthening of its reserves and resource base, which has enhanced production sustainability and reduced reliance on external inputs. Strategic investments in advanced geological screening, cutting-edge technologies, and disciplined prospect evaluation have expanded the reserves portfolio, and resulted in increased exploration and prospecting expenditure, including seismic acquisition and drilling of exploratory wells, reflecting a strong focus on reserves replacement, resource growth, and long-term margin improvement.

To improve operational efficiency and reduce costs, Mari has successfully lowered its finding costs from USD 6.1 to USD 0.8 per BOE and finding and development costs from USD 15.38 to USD 6.46 per BOE, demonstrating enhanced operational maturity and disciplined cost management.

Despite these efficiencies, profitability ratios declined in FY25 due to exogenous factors, including the 15% Additional Wellhead Levy on Mari Field sales from November 2024 and lower applicable hydrocarbon prices, including currency exchange impacts. Consequently, the net profit margin stood at 36.8% in FY25, compared to 42.5% in FY24.

Mari's sustainability is strengthened by proactive management initiatives, notably the Government’s approval of a five-year extension to the Mari lease period, which now extends the Company’s development and production rights in the lease area until 2029 and subsequently as per amendments in rules the extension will be allowed till economic life of field. This extension enables Mari to focus on optimizing recovery from the field, ensuring long-term operational continuity and resource development. By executing its exploration plans and enhancing production from existing fields, the Company is well-positioned to maintain a steady growth trajectory.

The management is committed to achieving the Company’s long-term vision and growth objectives through three key pillars: (i) strengthening the core business, (ii) diversifying beyond oil and gas, and (iii) establishing national leadership in Environmental, Social, and Governance (ESG) initiatives.

Exploration remains a priority for Mari, with ongoing activities targeting both current and prospective blocks. The aim is to discover additional hydrocarbon resources to further strengthen the Company's reserves base and ensure long-term resource development. Additionally, Mari continues to evaluate and enhance the production capacity of its explored and producing fields, focusing on improving the recovery factors and accelerating production. Mari’s participation in a consortium of leading Pakistani national E&P companies to explore an offshore oil and gas block in Abu Dhabi marks a significant expansion into the international market. This is the first such opportunity for Pakistani E&P companies in the region, underscoring Mari’s growing global footprint.

Mari’s diversification strategy reflects its forward-looking approach to growth and sustainability, with key developments in several strategic areas:

Mining Sector: Mari’s entry into the near core mineral mining sector is a significant step towards diversifying its portfolio and seize new growth opportunities, complementing its traditional exploration and production activities.
Clean Energy and Green Hydrogen: Mari is making strides in the clean energy space by positioning itself at the forefront of the transition to cleaner energy sources such as green hydrogen. The company, in collaboration with leading national & international players is exploring this potential area for business expansion to supports global decarbonization efforts and diversifying Mari’s energy mix.
Energy Infrastructure and Advanced Technologies: Mari is investing in energy infrastructure and advanced technologies to enhance operational efficiency and create new business opportunities in the energy space. The establishment of Mari Technologies Limited is a key step in embracing the digital transformation of the energy and mining industries. This subsidiary will focus on cutting-edge technologies such as data centers, cloud computing, artificial intelligence, and solutions related to petroleum and mining, reflecting Mari’s commitment to technological innovation.
ESG as always been at the core of Mari’s business operations:  At the core of Mari’s strategic approach is its Environmental, Social, and Governance (ESG) Policy, launched in April 2023. Centered on three pillars—Environmental Stewardship, Social Responsibility, and Governance Excellence—the policy guides decision-making and performance across Mari’s operational footprint. In recognition of its commitment to transparency and sustainability, Mari’s Sustainability Report was awarded 4th place overall at the Best Corporate and Sustainability Report Awards on October 18, 2024.

As of FY25, Mari’s trade receivables totaled PKR 86,582 million, up from PKR 81,073 million in the previous year, primarily due to circular debt. The Company continues to effectively manage its working capital through internally generated cash, maintaining a healthy bank balance and short-term investments of PKR 76,926 million. Despite challenges in the sector, Mari’s working capital cycle remains manageable due to minimal reliance on external borrowings.

The Company’s robust financial position ensures stable and well-managed liquidity, with no current or anticipated shortfalls. Liquidity requirements are primarily met through internally generated cash flows from hydrocarbon sales and income from deposits, minimizing reliance on external financing and keeping borrowing costs low. During the year, PKR 78,198 million was generated from operating activities, which was primarily allocated to exploration and development, diversification initiatives, capital expenditures, and dividend payments. The Company continuously monitors cash inflows, outflows, and future projections to proactively manage liquidity and make informed strategic and operational decisions.

The Company maintains minimal reliance on external financing, with outstandingwith borrowings totaling PKR 657 million only as of June 30, 2025. With an equity base of PKR 271,654 million, strong cash flows, Mari enjoys solid financial stability. Management intends to remain largely debt-free, emphasizing financial prudence, risk mitigation, and sustainable growth, with internally generated cash serving as the principal source of financing.