KARACHI: Oil and Gas Development Company Ltd (OGDCL) said its board has approved an increase in its committed expenditure for the Reko Diq copper and gold project to $715 million, up from a previous commitment of $627 million, following revised development and financing estimates.
The revised funding commitment includes project financing costs and reflects updated feasibility assumptions, including a six-month delay in production start to 2029 and an increase in total project financing to $3.5 billion from $3 billion. OGDCL’s expected shareholder contribution now stands at $391 million, compared with $349 million previously.
OGDCL holds an 8.33% stake in the project, alongside Pakistan Petroleum Ltd and Government Holdings (Private) Ltd, which together represent a 25% interest via Pakistan Minerals (Private) Ltd. The Government of Balochistan holds 25%, while Barrick Mining Corp, the operator, owns the remaining 50%.
The board also approved execution of key financing agreements, including the SOE Completion Agreement and the Transfer Restrictions Agreement.
The SOE Completion Agreement commits the three state-owned enterprises to a joint and several guarantee of their 27.78% share of RDMC’s secured debt until financial completion. The Transfer Restrictions Agreement sets minimum shareholding thresholds for project sponsors until full debt repayment.
OGDCL said the project remains economically viable under the revised assumptions.