The Board of Directors (BoD) of Pakistan Petroleum Limited (PPL) has approved, in-principle, funding of the Government of Balochistan’s (GoB) share of capital contribution in the BLZ Project.

The listed company, which did not disclose the amount of funding, shared the development in its notice to the Pakistan Stock Exchange (PSX) on Tuesday.

The E&P shared that the approval was given by the BoD in its meeting held on 3rd February 2024.

“PPL shall arrange funding, from its cashflows, for GoB’s capital contribution through a financing arrangement. Debt servicing would be through GoB’s share of project cashflows,” read the notice.

“To this end, a financing agreement shall be executed by the company with GoB, subject to all requisite approvals, including but not limited to, the approval of Balochistan’s provincial cabinet and the shareholders of the company,” it added.

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Back in December 2021, PPL disclosed the grant of a large-scale mining lease for lead and zinc, in District Khuzdar, by GoB and execution of a large-scale mining lease deed in this regard, for large-scale mining and establishment of a Lead-Zinc processing plant in District Khuzdar (BLZ Project).

Sharing the details of the BLZ Project, PPL said the project was to be established over an area covering 30 Sq.km (7413.16 acres), and the lease shall be operated by Bolan Mining Enterprises (BME).

BME is a joint venture between GoB and PPL with each sharing a 50% working interest agreement signed on June 1, 1974, between the two for 30 years to mine, grind and market baryte deposit in Gunga near Khuzdar and other minerals in Balochistan.

PPL was designated as operator under this agreement which was renewed in June 2004 for another three decades.

PPL was incorporated in Pakistan in 1950 with the main objectives of conducting exploration, prospecting, development and production of oil and natural gas resources.