Mari Energies Limited (PSX: MARI) has responded to recent reports regarding the termination of its Gas Sale and Purchase Agreement (GSPA) with Singapore-based Petrosin CNG (Pvt.) Limited, rejecting allegations that the contract was terminated unlawfully.

In a clarification submitted to the Pakistan Stock Exchange (PSX), the company said the agreement required Petrosin to maintain a valid operating licence, adding that the firm did not hold a valid licence at the time the GSPA was terminated.

Mari Energies also stated that its position has consistently been upheld by Pakistani courts and that no adverse court order has been issued against the company. It added that its stance in the related legal proceedings is already part of the public record.

The company further noted that the ongoing arbitration proceedings are confidential and said it remains confident that its position will ultimately be upheld.

The clarification follows media reports that Petrosin has initiated international arbitration proceedings against Mari Energies, seeking approximately $19 million in damages over the termination of the gas supply agreement. Mari Energies did not comment on the value of the claim in its latest disclosure.