S. Arabia plans $1bn investment in Reko Diq project, aims to acquire stakes in energy giants

Saudi Arabia is set to invest approximately $1 billion in the Reko Diq project, one of the largest untapped copper and gold reserves globally, located in the Baluchistan province near the Afghanistan and Iran borders.

The Kingdom has also announced plans to invest in Pakistan's energy infrastructure by acquiring stakes in the Oil and Gas Development Company Limited (OGDCL) and Pakistan Petroleum Limited (PPL), two of the country's foremost energy corporations.

This move aims to enhance the energy sector of Pakistan and fortify the economic relationship between the two nations.

Prime Minister Shehbaz Sharif has established a high-level committee, including officials from the Finance Ministry and representatives from OGDCL and PPL, to oversee the investment process in the Reko Diq project.

This committee is scheduled to visit Saudi Arabia soon to conduct negotiations aimed at finalizing the agreements.

Mark Bristow, CEO of Barrick, the world's second-largest gold producer and a 50% stakeholder in the Reko Diq project, indicated in November 2023 that Saudi Arabia's potential acquisition of a share in Reko Diq is contingent upon the Pakistani government's decision.

The project, which Barrick co-owns with Pakistan’s federal and Balochistan regional governments, has the capacity to produce significant amounts of copper and gold annually for over fifty years.