ISLAMABAD: Minister for Energy Hammad Azhar on Tuesday said the Federal Cabinet had approved extension of Saindak Mine lease to the Chinese company, already working on the project.

“As per the newly negotiated agreement, the Government of Pakistan’s share in profit has increased from 50:50 to 53:47 in Pakistan’s favour,” he said in a series of tweets.

He said royalty to the Balochistan government was also enhanced from 5 percent to 6.5 percent of sales revenue, besides “social uplift support to the government of Balochistan from 5% to 6.5% of net profit & increase in annual rent by up to 40% (indexed with price),” he added.

The minister said the newly negotiated agreement was concluded in consultation with all the stakeholders including the provincial government.

In another tweet, Hammad said Pakistan Petroleum Limited (PPL) would be taking over operation and working share from China Zenhua Oil in the Baska Block that spanned over 2500 square kilometer area in Dera Ismail Khan, Dera Ghazi Khan and Musa Khel area.

“The previous company was unable to carry out exploration for oil/gas in this terrain since 2007. PPL will do so now,” he added.