Pakistan Petroleum Limited (PPL), a key supplier of natural gas in the country, has entered into a Joint Venture Agreement (JVA) with Degan Exploration Works (DEW) for Mineral Exploration License (EL-207), in district Chagai, Balochistan.
The E&P shared the development in its notice to the Pakistan Stock Exchange (PSX) 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,” read the notice.
PPL and DEW shall have interests of 49% and 51%, respectively.
PPL, a state-owned petroleum company, operates major oil and gas fields, including the Sui gas field, has non-operating interests in other fields, and has an interest in an exploration portfolio onshore and offshore.
Meanwhile, 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.
As per the notice, the license area is located in the Chagai Metallogenic belt which is known for possessing class 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 i.e., EL-207,” the E&P said.
“We are optimistic that this venture will provide strategic advantages to the company within the mineral-rich Chagai Metallogenic belt,” it added.
Last month, the listed E&P informed its shareholders that it registered a significant increase in hydrocarbon production from its wells located across the country, during the period between October 2023 and March 2024.
As per PPL’s latest financial results, the company saw its profit-after-tax (PAT) jump nearly 44% to clock in at Rs69.78 billion for the half-year ended December 31, 2023.