LONDON, UK: Oracle Power Plc (AIM:ORCP), the international natural resources project developer, has entered in to a joint venture agreement with the Private Office of His Highness Shaikh Ahmed Dalmook Al Maktoum (represented through Kaheel Energy FZE, a wholly owned free zone company incorporated under the laws of Dubai, UAE), with the objective of advancing the Company’s green hydrogen project in Pakistan.
The joint venture company, Oracle Energy Limited, aims to invest in, develop, own and operate a facility for the manufacture of green hydrogen in Pakistan (Sindh province) and also undertake its storage, transportation and sale.
Oracle Energy, a limited liability company incorporated under the laws of Pakistan, will be funded on a 70:30 basis by Kaheel Energy and Oracle Power respectively.
Kaheel Energy is 100 per cent owned by Ahmed Dalmook Al Maktoum. The joint venture structure is intended to provide a vehicle to support the accelerated development of the project to meet the growing international and domestic demand of green hydrogen and clean energy.
At the same time, this structure will significantly mitigate the early-stage development risk and funding requirement for the Project.
Naheed Memon, CEO of Oracle, said it was a hugely significant development for Oracle and provided a route through which to establish a ground-breaking green hydrogen project in Pakistan.
“As shareholders will be aware, the Oracle team has been working hard over the past six months to create a framework and investment path to bring this revolutionary green hydrogen technology to Pakistan, and this joint venture is a landmark development in bringing this to fruition”.
Memon said the parties involved would use their combined industry influence, and further build their technical expertise, to move the project forward at pace.
“Importantly, this joint venture structure materially de-risks the development process for Oracle Power shareholders whilst ensuring we maintain exposure to this potentially highly valuable initiative”.
“Issues relating to green energy and fuel security are high on the agenda worldwide and we are more determined than ever to bring this emerging green fuel source to commercialization”.
Oracle, Kaheel Energy and Oracle Energy would retain joint operational and management control and Naheed Memon will also be the CEO of Oracle Energy.
Kaheel Energy has been issued with 233,330 new ordinary shares at Rs12/share, (a 20 per cent premium to Oracle’s subscription) in Oracle Energy.
Kaheel Energy will be issued shares such that its shareholding is 70 per cent and the remaining 30% will remain with Oracle Power on a pari passu basis.
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