OGDC, PPL to invest in Reko Diq

Two state-owned energy companies listed on the Pakistan Stock Exchange said on Monday that they have negotiated and finalised, along with Government Holdings Pakistan Ltd, the definitive agreements for their respective participation in the reconstituted Reko Diq project. Oil and Gas Development Company Ltd, Pakistan Petroleum Ltd and Government Holdings Ltd, another state-owned entity, will each invest in an associated company for the acquisition of 8.33 per cent interest in the project and subsequent capital investments going forward. The reconstituted project, which will excavate gold and copper reserves in Balochistan, has saved Pakistan from an $11 billion penalty in the Reko Diq case. Earlier in March, the federal and Balochistan governments reached an agreement with two international firms — Antofagasta PLC and Barrick Gold Corporation — on a framework to reconstitute the Reko Diq project that allowed Antofagasta to make an exit.