Petroleum minister rejects reports of selling 15% Reko Diq shares to Saudi Arabia

ISLAMABAD: Federal Minister for Petroleum Dr. Musadik Malik on Tuesday categorically denied the reports of selling 15 per cent of Reko Diq shares to Saudi Arabia, ARY News reported.

Talking to the media in Islamabad, Musadik Malik said that the federal cabinet has not approved the sale of a 15% stake in the Reko Diq mining project to Saudi Arabia, under an intergovernmental transaction agreement.

Petroleum Minister stressed that neither any state forum has approved the sale nor the deal has been finalized with Saudi Arabia yet, adding that talks with the Saudi government are ongoing in a positive manner.

Meanwhile, the minister also discussed the issue of captive power plants, saying that CPP generates electricity from gas at a cost of Rs13 per unit and purchases the remaining electricity from the national grid at Rs40.

“The government has planned to raise the issue of captive power plants with IMF, which had demanded to disconnect the gas supply to these plants by January 2025”, he said.

Petroleum Minister highlighted the uncertainty around the future of these plants, asking that who will bear the extra load of 150 to 250 MMCFD gas in the system after the disconnection.

Musadik also refuted the reports that Kuwait Foreign Petroleum Exploration Company (KUFPEC) is withdrawing from Pakistan, stating that they have only offloaded their 17 percent non-operated assets in the country.

Today some media reports said that the federal cabinet approved the sale of 15 percent shares in Reko Diq Mine worth $540 million to Saudi Arabia (KSA) under the Inter-Governmental Commercial Transactions Act.

Earlier, Saudi Arabia offered a fifteen percent investment in the mega Reko Diq gold and copper project.

The Kingdom has also offered grants to build road infrastructure around the Reko Diq project. Special Investment Facilitation Council has approved the structure of the offer but the final decision has been left to the Cabinet Committee on Intergovernmental Transactions.

Pakistan expects Saudi investment of up to five billion dollars in the mining and agriculture sector by June next year.