Mari Energies Limited (PSX: MARI) has strongly denied allegations that it unlawfully terminated its Gas Sale and Purchase Agreement (GSPA) with Singapore-based Petrosin CNG (Pvt.) Limited, stating that its decision was fully in line with the contract and applicable legal requirements.
In a clarification submitted to the Pakistan Stock Exchange (PSX), the exploration and production (E&P) company said the termination of the agreement was justified because Petrosin allegedly failed to meet a key contractual requirement.
According to Mari Energies, the GSPA clearly required Petrosin to possess and maintain a valid operating licence throughout the duration of the agreement. The company claimed that Petrosin did not hold a valid licence at the time the contract was terminated, making the cancellation compliant with the terms of the agreement.
The clarification came after allegations surfaced suggesting that Mari Energies had wrongfully ended the gas supply agreement. Rejecting those claims, the company emphasized that its actions were based on contractual obligations rather than arbitrary decision-making.
Mari Energies further stated that its legal position has consistently been supported by Pakistani courts. The company said no adverse judicial order has ever been issued against it regarding the dispute, reinforcing its confidence in the legality of its actions.
The company also noted that its arguments and legal stance in the matter are already part of the public record through ongoing court proceedings, adding that the available judicial history supports its interpretation of the agreement.
Addressing the arbitration process linked to the dispute, Mari Energies said the proceedings remain confidential under the applicable rules governing arbitration. As a result, the company said it would not disclose details of the case while it remains under adjudication.
Despite the ongoing arbitration, Mari Energies expressed confidence that the outcome would support its position. The company reiterated that it acted strictly in accordance with the contractual provisions and relevant legal framework when terminating the agreement.
The clarification follows reports surrounding a legal dispute involving Petrosin, which had previously sought compensation over the termination of the gas supply agreement. Mari Energies maintained that its actions were lawful and that it would continue to defend its position through the appropriate legal channels.
As one of Pakistan’s leading oil and gas exploration companies, Mari Energies regularly provides disclosures to the Pakistan Stock Exchange to keep investors informed about material developments that may affect the company’s operations or financial position.
The company stressed that transparency with shareholders remains a priority and that it would continue to comply with all regulatory disclosure requirements while respecting the confidentiality of ongoing arbitration proceedings.
The dispute highlights the importance of contractual compliance in Pakistan’s energy sector, where operating licences and regulatory approvals play a critical role in commercial agreements between producers and buyers.
With arbitration still underway, the matter remains unresolved. However, Mari Energies has reaffirmed its confidence that both the contractual terms and the legal process will ultimately validate its decision to terminate the Gas Sale and Purchase Agreement with Petrosin.
Also read: Mari Energies Announces Oil And Gas Discovery In Sindh
