OGDCL and PPL to Participate in Reko Diq Project

Oil and Gas Development Company Limited (OGDCL), Pakistan Petroleum Limited (PPL), and Government Holdings Private Limited (GHPL) as State-Owned Enterprises (SOEs) have finalized agreements to take part in the reconstituted Reko Diq project.

According to a stock filing, OGDCL wrote to PSX that all parties are aiming to satisfy the conditions at the earliest.

The filing read the Board of Directors of the Company approved the execution of the Definitive Agreements and has also authorized the issuance of notices to convene an Extraordinary General Meeting for purposes of seeking approval of the shareholders of the company under the Companies Act, 2017 for an investment in an associated company for the acquisition of 8.33 percent interest in the project and subsequent capital investments as may be required and/or feasible.

It added that the transaction remains subject to receipt of regulatory, legal, and administrative approvals and the implementation of the legalization plan in terms confirmed by the parties. All stakeholders are aiming to satisfy all conditions and disclosures in this regard will be made as and when there are any developments.

This comes after the central and Balochistan governments signed a new agreement with Barrick Gold Corporation of Canada for the extraction of gold and copper reserves from Reko Diq, one of the world’s largest undeveloped copper-gold deposits, with a $10 billion investment.

In March, OGDCL and PPL entered into a non-binding framework agreement for commencing the Reko Diq project with the federal government, GHPL, and Barrick Gold Corporation (Barrick).

The project will be controlled 50 percent each by Barrick Gold and Pakistan. It will be completed in two stages and go into production within the next 5-7 years.