The shareholders of Oil & Gas Development Company Limited (OGDC) have approved a series of key resolutions at the company’s 14th Extraordinary General Meeting held on September 10, 2025. These resolutions pertain to the company’s significant investment commitments related to the Reko Diq Mining Company (RDMC) project and associated corporate guarantees.
The shareholders granted approval for OGDC to pay its prorated share of the committed expenditure for Phase-1 of the Reko Diq project. This contribution, amounting to up to USD 715 million, will be provided to Pakistan Minerals (Private) Limited (PMPL) by way of equity or shareholder loan. The total committed expenditure for this project is aimed at facilitating the development of the mining operations at Reko Diq.
In addition, the shareholders approved the issuance and execution of a corporate guarantee by OGDC, along with Pakistan Petroleum Limited (PPL) and Government Holdings Private Limited (GHPL), to secure financing for RDMC from lenders. The guarantee will be issued on a joint and several basis to cover RDMC’s debt obligations.
A key aspect of the corporate guarantees includes an indemnity agreement, under which OGDC, PPL, and GHPL will collectively indemnify lenders against any liabilities arising from unenforceable or invalid debt obligations. The agreement also includes provisions for tax gross-up, a par call right, and completion defaults, alongside representations, warranties, and undertakings to ensure proper performance.
OGDC shareholders also approved the execution of a Transfer Restrictions Agreement, which governs the ownership structure and transfer of interests in RDMC and outlines the specific roles of each stakeholder, including Barrick Mining Corporation, which will maintain control over RDMC.
The resolutions and agreements will help facilitate OGDC’s involvement in the Reko Diq project, which is pivotal for the company’s expansion and growth in the energy sector. The company’s leadership emphasized that these decisions align with OGDC’s long-term strategy to bolster its resource base and support the sustainable development of Pakistan’s natural resources.
The meeting marked a critical step towards realizing the company’s objectives and supporting the country’s energy infrastructure development.
