Barrick Gold Corporation, Pakistan Petroleum Limited, Oil and Gas Development Company Limited and Government Holdings Limited completed the acquisition of 37.5% stake in Reko Diq Project in Balochistan from Antofagasta plc.
December 14, 2022
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Barrick Gold Corporation (TSX:ABX), Pakistan Petroleum Limited (KASE:PPL), Oil and Gas Development Company Limited (KASE:OGDC) and Government Holdings (Private) Limited entered into a framework agreement to acquire a 37.5% stake in Reko Diq Project in Balochistan from Antofagasta plc (LSE:ANTO) for $900 million on March 20, 2022. Prior to transaction, project is held 37.5% by Barrick Gold and Antofagasta each and 25% by Government of Balochistan. Upon completion, Barrick Gold?s shareholding will increase to 50% and 25% stake will be held equally by PPL, OGDC and Government Holdings (Private) Limited. Antofagasta will hold no stake in it. The parties have agreed to work together over the course of this year to finalize and approve definitive agreements. If definitive agreements are executed and the conditions to closing are satisfied during 2022, Antofagasta would expect to receive those proceeds during 2023. As on December 15, 2022, Antofagasta, Barrick Gold Corporation and Governments of Pakistan and Balochistan entered into definitive agreements under which: the Project has been reconstituted under Tethyan Copper Company Pty Limited, a consortium of various Pakistani state-owned enterprises has acquired shares in Tethyan Copper Company subsidiary which holds the Project and Tethyan Copper Company's International Centre for Settlement of Investment Disputes ("ICSID") award has been resolved. The proceeds of the Sale, which together with accrued interest totals $945 million, will be held by Tethyan Copper Company until they are distributed and are expected to be received by Antofagasta by the end of 2023.
Melanie Shishler, Jared Solinger and Chris Anderson of Davies Ward Phillips & Vineberg LLP acted as legal advisor to Barrick Gold Corporation. Lazard acted as financial advisor to Pakistan Petroleum Limited, Oil and Gas Development Company Limited, Government Holdings (Private) Limited. White & Case LLP acted as legal advisor.
Barrick Gold Corporation (TSX:ABX), Pakistan Petroleum Limited (KASE:PPL), Oil and Gas Development Company Limited (KASE:OGDC) and Government Holdings (Private) Limited completed the acquisition of 37.5% stake in Reko Diq Project in Balochistan from Antofagasta plc (LSE:ANTO) on December 15, 2022.
Pakistan Petroleum Limited is a Pakistan-based company that is engaged in exploration, development and production of oil and natural gas resources. The Company's exploration and production portfolio is spread across Pakistan with an international presence in the United Arab Emirates (UAE) and Yemen. It also holds mineral rights in Balochistan through Bolan Mining Enterprises, which is a 50:50 joint operation between the Company and Government of Balochistan. It has a portfolio of around 50 exploration assets of which the Company operates 29, including an offshore Block 5 in Abu Dhabi, UAE while 21 blocks, comprising an onshore concession in Yemen, are operated by joint venture partners. It operates around 16 producing fields across the country at Sui, Adhi, Kandhkot, Chachar, Mazarani, Adam, Adam West, Shadadpur, Shahdadpur West, Shahdadpur East, Zafir, Fazal, Kabir, Hadaf, Dhok Sultan and Benari and holds working interest in 24 partner-operated producing fields, including Qadirpur.
Barrick Gold Corporation, Pakistan Petroleum Limited, Oil and Gas Development Company Limited and Government Holdings Limited completed the acquisition of 37.5% stake in Reko Diq Project in Balochistan from Antofagasta plc.