ISLAMABAD: Pakistan on Tuesday approved a renegotiated deal with the Chinese company for Saindak mine which involves an increase in the country’s profit share and an enhanced royalty for the Balochistan government, ARY NEWS reported.
The details were shared by Federal Minister for Energy Hammad Azhar from his Twitter handle, who said that the federal cabinet has given approval for the extension on the duration of Saindak Mine’s lease to the same Chinese company.
He shared that as per the newly negotiated agreement, the government of Pakistan’s share in profit has increased from 50:50 to 53:47 in Pakistan’s favour.
“Royalty to [government] of Balochistan enhanced from 5% to 6.5% of sales revenue,” Hammad Azhar said and added, “Social uplift support to GOB from 5% to 6.5% of net profit and increase in annual rent by up to 40% (indexed with price).”
He further said that the agreement has been concluded in consultation with all stakeholders including the government of Balochistan.
Furthermore, the energy minister shared that Pakistan Petroleum Limited (PPL) will be taking over the operation and working share from China Zenhua Oil in the Baska Block that covers 2500 square kilometres in the Dera Ismail Khan, Dera Ghazi Khan and Musa Khel area.
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“The previous company was unable to carry out exploration for oil/gas in this terrain since 2007. PPL will do so now.”
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