ISLAMABAD: Petrosin CNG (Pvt) Ltd has initiated arbitration proceedings against Mari Energies Ltd before the International Chamber of Commerce (ICC) in London, seeking damages of $19.1 million (approximately Rs5.36 billion), along with arbitration costs, over the alleged unlawful termination of a gas supply agreement.
According to court documents, Petrosin claims that Mari Energies wrongfully terminated the Gas Sales and Purchase Agreement (GSPA) for gas supplied from the Halini Production Field, resulting in significant commercial losses. The company argues that the agreement was a binding commercial contract governed by Pakistani law and included an arbitration clause requiring disputes to be resolved under the ICC Rules of Arbitration, with London as the seat of arbitration.
Mari Energies, one of Pakistan’s leading oil and gas producers, has rejected the allegations, maintaining that it lawfully terminated the GSPA after Petrosin allegedly ceased to hold a valid licence, thereby breaching the agreement.
Following the termination notice issued by Mari Energies in May 2025, Petrosin obtained interim relief from a civil court in June 2025 to preserve the status quo. The company subsequently initiated ICC arbitration and filed an enforcement petition under the Recognition and Enforcement (Arbitration Agreements and Foreign Arbitral Awards) Act, 2011, seeking recognition of the arbitration agreement and interim protective measures.
However, the Islamabad High Court (IHC) dismissed the enforcement petition. Petrosin has since challenged the IHC’s January 1, 2026 judgment before the Supreme Court of Pakistan through a civil petition seeking leave to appeal under Article 185(3) of the Constitution.
The dispute marks another significant international commercial arbitration involving Pakistan’s energy sector, highlighting the increasing reliance on international forums for resolving high-value contractual disputes.
Story by Khaleeq Kiani
