Pakistan Refinery Limited (PSX: PRL) and Oil and Gas Development Company Limited (PSX: OGDC) Limited have signed a Memorandum of Understanding (MoU) to explore potential opportunities in the country’s energy industry.
Under the terms of the agreement, OGDC and PRL will identify potential areas of cooperation and collaboration. An important aspect of this collaboration is OGDC’s equity investment in PRL as a strategic investor with proper board representation and with the goal of upgrading and growing the refinery.
The two companies will collaborate to execute necessary agreements such as data exchange confidentiality agreements and to identify suitable potential investments.
The parties will also facilitate and support each other in realizing the objectives outlined in the MoU, with a commitment to defining a specific Scope of Work/TOR for any joint investment opportunity prior to entering into a definitive agreement.
The MoU is effective from the date of signing and will be valid for a period of two years unless mutually extended by both parties.
Both companies will equally bear all costs related to the negotiation, execution, and performance of the MoU.
While the MoU is not legally binding and does not create any contractual obligations, it signifies the commitment of OGDC and PRL to explore potential avenues for collaboration and cooperation. Any future cooperation will be subject to technical and commercial due diligence, as well as the respective boards’ approvals.