Oracle Power reassures shareholders over support for Thar development

Oracle Power noted a letter on Wednesday, from the Minister of Energy for the Government of Sindh to the chairman of the China Pakistan Economic Corridor Authority (CPEC), dated 9 March and copied to the Chinese Ambassador to Pakistan and Oracle's CEO Naheed Memon.

The AIM-traded firm said it understood that the letter reflected further the recent discussions of an official meeting in Karachi on 21 February.

It said the letter confirmed “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.

The letter also confirmed the approval for the issue of the letter of intent by the Private Power and Infrastructure Board (PPIB) on application and due process being adhered.

Oracle, on behalf of the consortium, said it would shortly submit the final letter of intent application documents to the PPIB

It added that a joint investment agreement and shareholders agreement would be drafted, and was expected to be signed at either the upcoming bi-annual Joint Cooperation Committee Meeting, or a visit by high-ranking Chinese officials to Pakistan.

“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,” said chief executive officer Naheed Memon.

“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.”

Memon said Oracle’s partners in the project, China Coal and His Highness, were keen to progress the development of Block VI as rapidly as possible.

“They have made clear, they intend to sign a Joint Investment Agreement and Shareholders Agreement with Oracle at the upcoming Joint Cooperation Committee meeting, or during a Chinese state visit, whichever takes place sooner.”

At 1547 GMT, shares in Oracle Power were down 9.29% at 0.7p.