PAKISTAN
Pakistan Petroleum Limited (PPL) has approved an increase in its funding commitment for the Reko Diq copper and gold project, following a revised feasibility study and updated cost estimates.
In a notice to the Pakistan Stock Exchange, the company said its Board of Directors, in a meeting held on August 18, 2025, approved a pro-rata funding commitment of USD 715 million, including project financing costs, up from the earlier commitment of USD 627 million. After accounting for project financing expected to be raised by Reko Diq Mining Company (Private) Limited (RDMC), PPL’s expected shareholder contribution now stands at USD 391 million.
The revision comes after the Phase 1 development cost was adjusted due to a six-month delay in production, now expected in 2029, along with higher financing costs and cost contingencies. Despite the revisions, the company noted that the project remains economically viable.
The PPL board also approved execution of key agreements, including the SOE Completion Agreement—a collective guarantee by state-owned enterprises for their share of RDMC’s debt obligations—and the Transfer Restrictions Agreement, ensuring minimum sponsor shareholding until project debt is repaid.
PPL holds an 8.33% stake in the Reko Diq project, alongside Oil and Gas Development Company Limited and Government Holdings (Private) Limited, making a combined 25% stake by the three SOEs. The Government of Balochistan holds 25%, while Barrick Mining Corporation remains the operator with a 50% share. The approvals remain contingent on shareholders’ and regulatory clearances. ER News Desk
