ISLAMABAD: Dismissing perceptions of backing out of a multibillion-dollar gold and copper project, Canadian firm Barrick Gold has assured Pakistan that it will continue development work despite the regional conflict. Earlier, Barrick had stated that it would review the Reko Diq project, located in the Chagai district of Balochistan, in the wake of security conditions following the Middle East war.
According to sources, the chairman of Barrick Gold visited Pakistan recently, where he emphasised that the company would push ahead with the mineral exploration project. Sources revealed that representatives of the company also arrived for an official trip focused on evaluating the security protocols and procurement strategies. The delegation aims to acquire state-of-the-art equipment and engage in talks regarding expansion of the company's lending and credit frameworks.
The managing director of Oil and Gas Development Company Limited (OGDCL) has also held talks with Barrick executives. Ahmed Hayat Lak, MD OGDCL, stated that a foreign delegation had landed to review the security arrangements. Under an agreement, the review will determine whether the security needs to be enhanced and how much additional financing may be required. He said that law enforcement agencies were busy taking measures to ensure seamless execution of the project, adding that both sides also discussed the procurement of necessary equipment through a competitive bidding process.
Addressing concerns about the mining project's financial backers, the MD noted that during a recent meeting in Canada, the lenders expressed satisfaction with the existing protocols, having already conducted their own security assessments prior to financing. He revealed that more lenders had shown keen interest in joining the mining venture.
An official of the Petroleum Division said that Federal Minister for Petroleum Ali Pervaiz Malik had presented an integrated energy plan to the prime minister. Pakistan has offered oil-producing countries that they can build energy reserves, can export oil from the deposits and can also utilise in Pakistan. The ministry official pointed out that 400 million cubic feet per day (mmcfd) of liquefied natural gas (LNG) had returned to the system, which had earlier been curtailed due to surplus imports.
He acknowledged that the deregulation of petroleum product prices was necessary to create a free and competitive market environment, but final decision would be taken by the head of the government. He underscored that work on the Iran-Pakistan gas pipeline had stalled because the matter was under arbitration in an international court due to sanctions-related issues. "Work is continuing on the project, but international companies have security concerns, which are being addressed in coordination with the relevant institutions."
He emphasised that the country should have strategic oil reserves and in that regard the existing policy was being reviewed so that any emergency situation could be dealt with effectively. The studies conducted on building the strategic reserves are already available with the government. "We have to ensure energy security," he said, adding that he had also briefed the prime minister on the matter.
The ministry official stressed that ensuring energy security required proper energy architecture, which was not a simple or easy task. He noted that commercial fuel reserves were available at refineries and oil marketing companies. Responding to a question, he revealed that domestic consumers would soon hear good news about gas prices.
Although the tense Middle East situation created a sense of crisis globally, Pakistan has managed the situation effectively. The country's supply chain remains stable with no constraints. The official added that three LNG cargoes had arrived recently while one spot cargo had been purchased and a tender re-floated.
