ISLAMABAD: Pakistan and Barrick Gold Corporation are conducting a formal review of security arrangements and procurement plans for the multibillion-dollar Reko Diq copper-gold project in Balochistan. Oil and Gas Development Company Limited Managing Director Ahmed Hayat Lak told reporters that the review, required under the project agreement, will determine whether security upgrades and additional funding are needed, while stressing that Pakistan bears sole responsibility for site protection as the host country.
Barrick Delegation Visits Islamabad
Barrick Executive Chairman John L. Thornton led a high-level delegation to Islamabad last month to discuss the security situation and procurement strategy with the government. The delegation also explored acquiring advanced heavy-duty equipment through competitive bidding and expanding the project’s lending and credit structures.
Lenders Express Confidence
On financing, Lak said lenders expressed confidence in existing security protocols during a recent meeting in Canada, having completed their own due diligence before committing funds. New financiers, he added, are showing strong interest in joining the venture.
Gas Pricing Developments
In a separate development, Petroleum Minister Ali Pervaiz Malik told reporters the government would soon announce “good news” on gas prices, without elaborating on the timeline. Following a suspension of liquefied natural gas supplies amid fears of a potential closure of the Strait of Hormuz during the US-Israel-Iran conflict, the power sector was shifted to domestically produced gas at around 2,000 rupees per million British thermal units (MMBTU), roughly half the cost of imported LNG at approximately 3,500 rupees per MMBTU. A summary will be sent to the federal cabinet to align pricing of this gas with local rates to shield consumers from higher costs, the minister said.
Local Production and Circular Debt
He added that local gas production had been ramped up by 400 million cubic feet per day in response to the supply disruption, and that proposals had been prepared to address the chronic circular debt problem in the gas sector. The minister clarified that decisions on levies imposed on petroleum products fall outside the jurisdiction of the Petroleum Division.
LNG Contract Controversy
Asked about a controversial LNG contract signed by former petroleum minister Shahid Khaqan Abbasi, Malik said the agreement with Qatar was secured at the lowest available rates at the time.
