PPL Expands Mining Portfolio to Develop Mineral Resources
Pakistan Petroleum Limited (PPL), a major natural gas supplier in the country, has entered a Joint Venture Agreement (JVA) with Degan Exploration Works (DEW) for Mineral Exploration License (EL-207) in Chagai district, Balochistan.
This development was announced in a notice to the Pakistan Stock Exchange (PSX) on Friday.
“We are pleased to announce that Pakistan Petroleum Limited (PPL), as part of its business diversification efforts, is expanding its mining portfolio by entering into a JVA with Degan Exploration Works to explore and develop the mineral resources in exploration license EL-207, in Chagai district, Balochistan,” read the notice.
Under this agreement, PPL and DEW will hold interests of 49% and 51%, respectively.
PPL, a state-owned petroleum company, manages major oil and gas fields, including the Sui gas field. It also holds non-operating interests in other fields and an exploration portfolio both onshore and offshore.
Degan Exploration Works, the operator of EL-207, is a wholly owned subsidiary of the Frontier Works Organization and has been granted exploration rights by the Balochistan government.
According to the notice, the license area is located in the Chagai Metallogenic belt, renowned for its significant copper and gold deposits such as Reko Diq and Saindak.
“Subject to all relevant corporate and regulatory approvals, PPL will invest approximately $11.5 million in the initial exploration phase over a three-year period to support exploration activities under exploration license EL-207,” the notice stated.
“We are optimistic that this venture will provide strategic advantages to the company within the mineral-rich Chagai Metallogenic belt,” it added.
Last month, PPL informed its shareholders of a significant increase in hydrocarbon production from its wells across the country between October 2023 and March 2024.
As per PPL’s latest financial results, the company saw its profit-after-tax (PAT) rise nearly 44%, reaching Rs69.78 billion for the half-year ended December 31, 2023.
