The Government of Pakistan and Mari Petroleum Company Limited (MPCL) have signed an amendment agreement to Mari Wellhead Gas Pricing Agreement 2015.
According to a notification to the Pakistan Stock Exchange (PSX), the government and the MPCL had agreed to this amendment on Saturday, 17 April 2021. It will give effect to the decision by the Economic Coordination Committee (ECC) of the Cabinet regarding the removal of the cap on the dividend distribution by the company.
The statement also detailed that effective from July 1, 2020, this will allow the MPCL to declare and distribute dividends in accordance with the provisions of the Companies Act, 2017 and the Companies (Distribution of Dividends) Regulations, 2017.
The ECC had allowed for the removal of the dividend distribution cap on the MPCL under the Gas Pricing Agreement earlier in February this year. The move had been made as an effort to ensure that the divestment transaction generates optimum sale proceeds for the government.