The authorized share capital of the Company is Rs.2,500,000,000 divided into 250,000,000  shares of Rs.10 each.
 Shareholder %age Amount
 (Rupees in Million)
 Fauji Foundation 40% 147.00
 Government of Pakistan 20% 73.50
 OGDCL 20% 73.50
 General Public 20% 73.50
 Total 100% 367.50


Under the terms of Participation and Shareholders Agreement, the original Shareholders i.e. Fauji Foundation, GOP and OGDCL have the pre-emption right to purchase the shares if offered for sale by any of the three parties.

Return to the Shareholders

The guaranteed return to the shareholders of the Company has been increased from 22.5% per annum to 30%  per annum with effect from July 01,2001. The shareholders are also entitled to further increase in return on incremental    gas production from the present level to 425 MMSCFD (at the rate of 1% for every 20 MMSCFD of gas or equivalent oil produced , prorated for part thereof on annual basis) subject to maximum of 45% per annum.

Gas Pricing

Price of the gas produced from Mari Gas Field is determined by the Price Determining Authority of the Government under the provisions of Mari Gas Wellhead Price Agreement. The gas price formula under the agreement allows the Company:-

  • Operating expenses as approved by the Board of Directors in the annual plan and budget.
  • Exploration expenses upto US$ 20.00 million per annum or 30% of the gross sales revenue, whichever is less.
  • 30.0% return on defined shareholders funds - guaranteed to increase by 1% for every additional 20 MMSCF/Day of gas produced beyond 425 MMSCF/D, upto a maximum of 45%.
  • Repayment of borrowing for development project financing.
  • Current ratio of 1:1.2.
  • Debt service ratio 1:1.5.
  • Long term debt equity ratio of no higher than 70:30.

The formula thus provides the profitability at a fixed level and ensures the financial liquidity of the Company.
Mari Gas Company Limited: About Us

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Accounts 2008-09
1st Qtr