KARACHI: Pakistan Petroleum Limited (PPL), a state-owned oil and gas producer, is diversifying its business by entering into a joint venture with Degan Exploration Works (DEW) to explore and develop mineral resources in Balochistan, according to a statement released 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 district Chagai, Balochistan,” PPL said in a notice to the Pakistan Stock Exchange (PSX) on Friday.
The joint venture agreement will see PPL and DEW holding 49% and 51% interests, respectively, in the Mineral Exploration License (EL-207) in the Chagai district. Degan Exploration Works, the operator of EL-207, is a wholly-owned subsidiary of Frontier Works Organization and has been awarded exploration rights by the Balochistan government.
The license area is located in the Chagai Metallogenic belt, known for significant copper and gold deposits such as Reko Diq and Saindak.
“Subject to all relevant corporate and regulatory approvals, PPL will be investing around $11.5 million in the initial exploration phase over a three-year period to support the exploration activities pursuant to the aforementioned exploration license EL-207,” PPL stated. “We are optimistic that this venture will provide strategic advantages to the company within the mineral-rich Chagai Metallogenic belt.”
