Oil and Gas Development Company Limited (OGDCL) together with Pakistan Petroleum Limited (PPL) and Government Holdings (Private) Limited (GHPL), together as State-Owned Enterprises (SOEs) constituted a special purpose vehicle, Pakistan Minerals Limited and deposited a sum of $562.5 million in an escrow account.
OGDCL with PPL and GHPL as SOEs have signed the Definitive Agreements with respect to the SOEs’ participation in the Reconstituted Reko Diq Project, according to the stock filing.
As part of the transaction and implementation plan agreed upon under the Definitive Agreements, the SOE SPV, ultimately, acquired a 25 percent stake in the Project from an existing Project stakeholder (“First Stage Acquisition”).
Consideration for the First Stage Acquisition was paid by each SOE in equal proportion on behalf of the SOE SPV. To this end, the SOEs utilized sums deposited in an interest-bearing, offshore, escrow account – such sums totaled $562.5 million in addition to accrued interest, of such total sums the Company’s proportional share was USD 187.5 million in addition to the corresponding proportional accrued interest.
Following the completion of the First Stage Acquisition, the SOE SPV’s stake in the project was restructured through a series of offshore holding companies – the SOE SPV’s and by extension, the SOEs’, stake in the Project, however, remained unchanged at 25 percent.
The rights and obligations of the SOEs and the SOE SPV with respect to the Project and between the other Project participants are governed by the Definitive Agreements. These rights and obligations relating to, inter alia, management, reporting, funding, and governance.
