KARACHI: Pakistan Petroleum Limited (PPL) together with Oil and Gas Development Company Limited (OGDC) and Government Holdings (Private) Limited, collectively the State-Owned Enterprises (SOEs), has signed the Definitive Agreements with respect to the SOEs’ participation in the Reconstituted Reko Diq Project.

Pursuant to the Definitive Agreements, PPL, alongside other SOEs, participated in the Project through a special purpose vehicle, jointly and equally owned by the SOEs, namely, Pakistan Minerals (Private) Limited (SOE SPV), says material information sent to Pakistan Stock Exchange.

As part of the transaction and implementation plan agreed under the Definitive Agreements, the SOE SPV, ultimately, acquired a 25 percent stake in the Project from an existing Project stakeholder (First Stage Acquisition), it added.

Consideration for the First Stage Acquisition was paid by each SOE in equal proportion on behalf of the SOE SPV. To this end, the SOEs utilized sums deposited in an interest-bearing, offshore, escrow account – such sums totalled $562.5 million in addition to accrued interest. Of such total sums, the Company’s proportional share was $187.5 million in addition to the corresponding proportional accrued interest.

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Following completion of the First Stage Acquisition, the SOE SPV’s stake in the Project is restructured through a series of offshore holding companies – the SOE SPV’s, and by extension, the SOEs’ stake in the Project, however, remains unchanged at 25 percent.

The rights and obligations of the SOEs and the SOE SPV with respect to the Project and inter se the other Project participants are governed by the Definitive Agreements. These rights and obligations relate to, inter alia, management, reporting, funding, and governance.

Copyright Business Recorder, 2022