Saudi Arabia eyes major investments in Pakistan’s energy sector

WEB DESK: Saudi Arabia is set to deepen its involvement in Pakistan’s energy sector and foster stronger economic relations between the two countries by potentially acquiring shares in two of Pakistan’s major energy companies, Oil and Gas Development Company Limited (OGDCL) and Pakistan Petroleum Limited (PPL).

In addition to this, Saudi Arabia is considering a significant investment, estimated at around $1 billion, in Reko Diq, a prominent site housing one of the largest untapped copper and gold reserves globally.

This move underscores Saudi Arabia’s commitment to supporting key development projects in Pakistan.

Prime Minister Shehbaz Sharif has taken proactive measures by establishing a high-level committee responsible for overseeing the investment process in Reko Diq.

The committee, composed of representatives from the Finance Ministry and key officials from OGDCL and PPL, is scheduled to undertake a crucial visit to Saudi Arabia in the near future.

During the visit, discussions will take place at the governmental level to solidify the agreement between the two nations.

In a November 2023 interview, Mark Bristow, CEO of Barrick, the world’s second-largest gold producer, expressed openness to Saudi Arabia acquiring a partial ownership stake in Reko Diq through an equity purchase alongside the Pakistani government.

The Reko Diq project, situated in the Baluchistan region bordering Afghanistan and Iran, has the potential to yield 200,000 tons of copper and 250,000 ounces of gold annually for over fifty years.

Currently, Barrick holds a 50 per cent stake in the project, with the federal government of Pakistan and the Balochistan regional government owning 25 per cent and the remaining shares, respectively.