Oracle Power PLC Support for Development of Thar Block VI (6877F)
11 March 2020 - 6:00PM
UK Regulatory
TIDMORCP
RNS Number : 6877F
Oracle Power PLC
11 March 2020
Oracle Power Plc / EPIC: ORCP / Market: AIM / Sector: Mining
11 March 2020
Oracle Power PLC
("Oracle", the "Company" or the "Group")
Oracle Notes Further Strong Support for Development of Thar
Block VI
Oracle Power PLC (AIM: ORCP) is pleased to note that a letter,
dated 9 March 2020, from the Minister of Energy for the Government
of Sindh (Mr. Imtiaz Ahmed Shaikh) to the Chairman of the China
Pakistan Economic Corridor ('CPEC') Authority (Lieutenant General
(Retd) Asim Saleem Bajwa) and copied to, inter alia, the Chinese
Ambassador to Pakistan and Oracle's CEO, Naheed Memon, (the
'Letter'). The Company understands that the Letter reflects further
the recent discussions of an official meeting in Karachi on 21
February 2020.
Overview
-- Letter from Ministry of Energy for the Government of Sindh to
Chairman of the CPEC Authority confirms continued and strong
support for the development of Thar Block VI, in which Oracle Power
holds a 100% interest through its subsidiary, Sindh Carbon Energy
Ltd ('SCEL')
-- Confirmation of approval for the issuance of the Letter of
Intent ('LOI') by the Private Power and Infrastructure Board
('PPIB')on application and due process being adhered. Oracle, on
behalf of the Consortium, will shortly submit the final LOI
application documents to the PPIB
-- Joint Investment Agreement ('JIA') and Shareholders Agreement
to be drafted and expected to be signed at either the upcoming
bi-annual Joint Co-operation Committee Meeting or a visit by
high-ranking Chinese officials to Pakistan
Naheed Memon, CEO of Oracle, said:
"Oracle recognises and gratefully acknowledges the support it is
receiving, as is evident in this letter received from the Office of
the Minister of Energy for the Government of Sindh. The level of
support now witnessed from these official channels is noteworthy
and a testament to the quality of our work on the ground. The
prominence of the parties alongside Oracle was acknowledged, with
reference to the financial and technical capabilities of China
Coal.
"Our partners in the Project, China Coal and His Highness are
keen to progress the development of Block VI as quickly as
possible. They have made clear, they intend to sign a Joint
Investment Agreement and Shareholders Agreement with Oracle at the
upcoming JCC Meeting, or during a Chinese State visit whichever
takes place sooner."
Further Information
The Board acknowledges that the Letter is another important
endorsement, which underlines the strong commitment from the
Ministry of Energy, for Oracle's flagship Thar Block VI project
(the 'Project').
The Minister of Energy for the Government of Sindh reiterated
his support for the development the Project and the Letter noted
the Project is on the Priority List for power developments under
China-Pakistan Economic Corridor (' CPEC'), following its upgrade
to this level in 2017.
Moreover, the Letter confirmed that in November 2019, Block VI
was also included in CPEC for the conversion of coal to gas and
urea projects (please see the Company's announcement of 19 November
2019 for further information). This makes it the only project
within CPEC with development across both energy and oil & gas.
The Letter placed significant emphasis on the importance of this
with respect to increasing food security for Pakistan, with Block
VI also providing a new dimension for bilateral CPEC cooperation
and increase investor confidence in Pakistan.
Oracle, on behalf of the Consortium (being Oracle, China Coal
and the Private Office of His Highness Sheikh Ahmed Bin Dalmook Al
Maktoum) will shortly apply for the LOI, to be granted to China
Coal (as the main sponsor of the Project), for the 1,320MW power
plant, which requires the submission of final application documents
on the Consortium to the PPIB. The Minster of Energy made a
specific request for the early, and prioritised, issuance of the
LOI by PPIB.
In addition, the Company believes that China Coal and the
Private Office of HH Sheikh Ahmed Bin Dalmook Al Maktoum are ready
to sign a JIA and Shareholders Agreement for the Project with
Oracle. This is intended to take place during the next JCC meeting,
or the upcoming high-level visit to Pakistan by Chinese officials,
expected mid-2020.
**ENDS**
For further information:
Oracle Power PLC +44 (0) 203 580
Naheed Memon 4314
Strand Hanson Limited (Nominated Adviser) +44 (0) 20 7409
Rory Murphy, James Harris, Jack Botros 3494
Brandon Hill Capital Limited (Joint Broker) +44 (0) 203 463
Oliver Stansfield 5000
Shard Capital (Joint Broker)
Damon Heath +44 (0) 20 7186
Isabella Pierre 9952
St Brides Partners Limited (Financial
PR)
Susie Geliher +44 (0) 20 7236
Catherine Leftley 1177
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
MSCDZGMFLGKGGZM
(END) Dow Jones Newswires
March 11, 2020 03:00 ET (07:00 GMT)
Oracle Power (LSE:ORCP)
Historical Stock Chart
From Apr 2024 to May 2024
Oracle Power (LSE:ORCP)
Historical Stock Chart
From May 2023 to May 2024