KARACHI: Pakistan Petroleum Limited (PPL), the state-owned oil and gas producer, is diversifying its business by entering into a joint venture with Degan Exploration Works (DEW) to explore and develop mineral resources in Balochistan, a statement said 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,” the PPL said in a notice to the Pakistan Stock Exchange (PSX) on Friday.
The joint venture agreement will see PPL and DEW hold 49 percent and 51 percent interests, respectively, in the Mineral Exploration License (EL-207) in the Chagai district.The 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.
The license area is located in the Chagai Metallogenic belt which is known for possessing class copper and gold deposits such as Reko Dig 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 PPL said.“We are optimistic that this venture will provide strategic advantages to the company within the mineral-rich Chagai Metallogenic belt."