Announcement
Oracle Coalfields : Signing of Consortium Agreement
RNS Number : 9102B
Oracle Coalfields PLC
12 October 2015
Signing of Consortium Agreement
Released : 12 October 2015
RNS Number :
Oracle Coalfields PLC
12 October 2015
12 October 2015
Oracle Coalfields PLC
("Oracle" or the "Company")
Signing of Consortium Agreement
Oracle Coalfields PLC (AIM:ORCP), the UK energy developer of a combined lignite mineral resource and mine mouth power plant located in the Thar desert in the south-east of Sindh Province, Pakistan, today announces that it has entered into a consortium agreement with the Shangdong Electric Power Corporation of China ("SEPCO") (the "Consortium Agreement").
Under the Consortium Agreement, Oracle and SEPCO (the "Parties") will be sponsors of a 600 MW indigenous coal-fired power plant, (the "Power Project"), which will be built, owned and operated by Thar Electricity (Private) Limited ("TEPL"), a private limited company incorporated in Pakistan. Under the Consortium Agreement, Oracle will hold 90 per cent. of the equity of TEPL, and SEPCO the remaining 10 per cent.
The Power Project has already been registered with the Private Power and Infrastructure Board ("PPIB"), part of the Ministry of Water & Power, Government of Pakistan. The Parties have now made a detailed submission to PPIB, of which the Consortium Agreement forms part. It is expected that this will lead to TEPL entering into a Power Purchase Agreement ("PPA") with the National Transmission and Despatch Company ("NTDC"), the state utility, and an Implementation Agreement with the Government of Pakistan, providing, inter alia, a Government guarantee for the payment by NTDC for electricity supplied to it by TEPL.
The above PPA with the NTDC is in addition to the joint cooperation with K-Electric, the largest private sector utility in Pakistan.
Shahrukh Khan, CEO of Oracle, said:
"SEPCO remain a major and valued partner in our goal to develop a long term sustainable solution towards Pakistan's energy crisis. This is an important step to securing a Government guarantee for payment for electricity supplied.
"We thank our shareholders for their continued confidence and support."
For further information:
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Oracle Coalfields PLC Shahrukh Khan
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+44 (0) 203 102 4807 |
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Brandon Hill Capital Limited Oliver Stansfield
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+44 (0)203 463 5000 |
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Peterhouse Corporate Finance Charles Goodfellow
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+44 (0)20 7220 9791 |
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Grant Thornton UK LLP Salmaan Khawaja, Richard Tonthat, Jamie Barklem
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+44 (0) 207 373 5100 |
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Blytheweigh Tim Blythe, Camilla Horsfall
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+44 (0) 207 138 3204 |
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Fortbridge Consulting Matt Beale, Bill Kemmery
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+44 (0) 7966 389196 |
This information is provided by RNS
The company news service from the London Stock Exchange
This information is provided by RNS
The company news service from the London Stock Exchange
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