April 03, 2024 (MLN): To bolster Pakistan's energy sector and strengthen economic ties between the two nations, Saudi Arabia will most likely acquire shares in Pakistan's leading energy giants, Oil and Gas Development Company Limited (OGDCL) and Pakistan Petroleum Limited (PPL).
Moreover, Saudi Arabia is poised to inject a substantial sum, reportedly around $1 billion, into Pakistan's Reko Diq, one of the world’s largest undeveloped copper and gold deposits, further underscoring its commitment to investing in Pakistan's strategic projects.
Prime Minister Shehbaz Sharif has taken proactive steps by forming a high-level committee tasked with overseeing the investment process of Reko Diq.
The committee, comprising representatives from the Finance Ministry and key officials from OGDCL and PPL, will embark on a crucial visit to Saudi Arabia in the coming days.
During the visit, negotiations will be held at the government level to cement the agreement between the two countries.
In November 2023, Barrick Chief Executive Officer Mark Bristow said in an interview that Saudi Arabia may acquire partial ownership in Reko Diq through an equity purchase with Pakistan’s government,
“That’s something that is in the hands of the Pakistan government to decide on,” said Bristow, who oversees the world’s No. 2 gold producer. “We would support any decision that’s made by the Pakistan government with the Saudis.”
The project, in the Baluchistan region bordering Afghanistan and Iran, is capable of producing 200,000 tons of copper and 250,000 ounces of gold a year for more than half a century.
Reko Diq is 50% owned by Barrick, with Pakistan’s federal government holding a 25% stake and the Balochistan regional government owning the rest.
