ISLAMABAD: The Oil and Gas Development Company Limited (OGDCL), on Wednesday, established a strategic partnership with Pakistan Refinery Limited (PRL) to identify and pursue potential cooperation opportunities and foster mutual growth in the energy industry of Pakistan.

Both companies have entered into a memorandum of understanding (MoU) to establish a strategic cooperation relationship in the energy industry.

The MoU sets the framework for future collaboration and cooperation between the two companies.

Under the MoU, the OGDCL, a leading Oil and Gas Exploration and Production company in Pakistan, and the PRL, a prominent refinery engaged in the production and sale of petroleum products, will engage in good faith negotiations to identify potential areas of cooperation and collaboration.

One of the key aspects of this strategic cooperation includes OGDCL's equity investment in the PRL as a strategic investor, with adequate board representation, aimed at the upgradation and growth of the refinery.

Both companies will work together to execute necessary agreements, including confidentiality agreements for data exchange, to identify suitable investment opportunities. The parties will also facilitate and support each other in realising the objectives outlined in the MoU, with a commitment to defining a specific scope of work/ToR for any joint investment opportunity prior to entering into a definitive agreement.

The MoU is effective from the date of signing and will be valid for a period of two years unless mutually extended by both parties. Each party will bear its own costs related to the negotiation, execution, and performance of the MoU.

While the MoU is not legally binding and does not create any contractual obligations, it signifies the commitment of the OGDCL and the PRL to explore potential avenues for collaboration and cooperation. Any future cooperation will be subject to technical and commercial due diligence, as well as the respective boards' approvals.

Both the OGDCL and the PRL are optimistic about the benefits this strategic cooperation can bring to the energy industry in Pakistan. By leveraging their respective expertise and resources, these companies aim to contribute to the growth and development of the sector, ultimately benefiting the economy and the people of Pakistan.

Copyright Business Recorder, 2023