Islamabad April 10 2025: Pakistan Petroleum Limited has executed amendment to the Operating agreement signed in 2004 that would generate USD 4.6 billion in revenues.
“Pakistan Petroleum Limited (PPL) has executed Amendment No. 1 to the Operating Agreement dated 15 November 2004 for Barytes Project with the Government of Balochistan (GoB), under a joint venture arrangement for the Baryte, Lead, and Zinc Project (the “BLZ Project”) between the Parties” according to the statement.
As a result of this amendment, the area under Mining Lease No. 16 executed on 6th December 2021 in District Khuzdar for Lead and Zinc, stands incorporated into the existing Operating Agreement, in addition to the existing area for Barytes in Gunga, District Khuzdar. PPL, through its mining arm viz., BME, will be the Operator of the BLZ Project, and in line with the terms of the Operating Agreement, preference will be given to local residents for employment opportunities.
Both PPL and GoB will contribute funds in proportion to their respective equity shares in the BLZ Project. The Company shall arrange funding, from its own cashflows, for GoB’s capital contribution through a financing arrangement. Previously, a Bankable International Standard Feasibility Study was completed in 2019 by M/s DMT, Germany, and the BLZ Project is currently in the development phase. The Project is expected to generate an average annual revenue of USD 144 million (equivalent to PKR 40.3 billion) with an NPV of USD 356 million (equivalent to PKR 99.6 billion) over an expected mine life of 32 years for the joint venture.
