Pakistan Petroleum Limited (PPL) has decided to evaluate a potential engagement with sovereign foreign investors with respect to the Reko Diq Project.

The company has also decided to hire advisors for this purpose, PPL shared in a notice to the Pakistan Stock Exchange (PSX) on Thursday.

“We are pleased to disclose that the Board of Directors at its meeting held on 28 September 2023, has decided to evaluate a potential engagement with sovereign foreign investors with respect to the Reko Diq Project and has decided to appoint advisors through its associated company M/s Pakistan Minerals (Private) Limited (PMPL) to assist in this regard,” read the notice.

In FY22, PPL signed a non-binding Framework Agreement to participate in the Reko Diq project with 8.33% equity. It is one of the world’s largest undeveloped copper and gold mines. Other partners are Barrick Gold Corporation (operator), GoB, OGDCL and GHPL.

Last year, a consortium of Pakistan’s oil exploration companies, lead by OGDCL, PPL and GHPL, together as State-Owned Enterprises (SOEs), signed definitive agreements for participation in the reconstituted Reko Diq project.

PPL is one of the largest and the leading exploration and production companies engaged in conducting exploration, prospecting, development and production of oil and natural gas resources. The company contributes over 20% of the country’s total natural gas supplies besides producing crude oil, Natural Gas Liquid and Liquefied Petroleum Gas.

The company saw its profit-after-tax (PAT) jump nearly 79%, as it clocked in at Rs97. 22 billion for the year ended June 30, 2023.

“The growth comes on the back of i) 16% YoY hike in wellhead price of Sui, ii) stable oil production while 2% YoY growth in gas production, and iii) 28% YoY Pak Rupee depreciation against greenback,” said Arif Habib Limited (AHL), a brokerage house, in a note.