Khyber Pakhtunkhwa Oil and Gas Company Ltd (KPOGCL), an independent company owned by the KP government, and Heritage Resources Ltd (HR-Ltd), a company incorporated in Hong Kong, have signed a Memorandum of Understanding (MOU) for oil and gas related projects.
KPOGCL CEO Raziuddin and HR-Ltd Director Khaled Hamedi signed the MoUs on behalf of their respective companies while KP Chief Minister Pervez Khattak and RCCC Vice President LIU Ruchen witnessed the ceremony.
The MoU will also offer farm-out opportunities in KP’s concession blocks. Both the companies will sign separate agreements for each project and joint venture. The MoU is focussed upon developing joint strategies to work as a prime contractor in Pakistan, especially in Khyber Pakhtunkhwa on case-to-case basis. KPOGCL will offer investment opportunities in its concession blocks to explore and develop future prospects under KP-CPEC. HR-LTD shall arrange state-owned companies and provide the investment for G2G deals in different projects related to E&P in KP-CPEC.
Both the parties will work on project-to-project basis, where profitability of the project will be based on the acceptance criteria for the parties as per scope defined in CPEC frame of work by government of Pakistan.
The signing of the MoU is a milestone achieved by the KP government. Meanwhile, the China Railway Construction Corporation Limited (CRCC) has offered to invest in various development schemes in Khyber Pakhtunkhwa. It will soon sign a number of agreements with the provincial government for execution of various projects.
It is expected to encourage foreign investment in KP in accordance with the vision of CM Khattak and the Pakistan Tehreek-e-Insaf (PTI) led government in the province in the larger interest of the general public.Meanwhile, the China Railway Construction Corporation Limited (CRCC) has offered to invest in various development schemes in Khyber Pakhtunkhwa. It will soon sign a number of agreements with the provincial government for execution of various projects.
The exploration of oil and gas in the province will increase the resource base of the province and lead to development of the area in addition to enhancing welfare of the people.