Sign up UNITED KINGDOM
Proactive Investors - Run By Investors For Investors

Oracle Power shares leap as partners ratify memorandum for Thar development

The MoU was originally signed in November between Oracle and SCIG and PowerChina, its two co-developers
coal
Thar is a coal-fired power station

Oracle Power PLC (LON:ORCP) shares jumped nearly 17% higher on Friday after its Chinese partners ratified a memorandum of understanding to proceed with the development of the Thar power station project in Pakistan.

The MoU was originally signed in November between Oracle and SCIG and PowerChina, its two co-developers.

The next step will be the completion of due diligence early in the next quarter.

Details of the development agreement are as follows

  • Thar is forecast to cost US$1.6bn
  • Proposed debt : equity ratio 75:25
  • Oracle to hold a minimum 12.1% equity
  • Oracle's historic development costs to be recognised as part of its equity holding and contribution in the project
  • The Chinese partners to be exclusively responsible for arranging project financing.

Thar is being developed in two stages. This approval by the board of SCIG, the Chinese companies, is a key step forward as part of the first stage. 

On completion of the first stage, the next step will be to seek approval from the Chinese Government, after which a final development decision will be made to take the Project through to financial close.

The project has priority status in the China Pakistan Economic Corridor.

Shahrukh Khan, Oracle’s chief executive, said: "I am delighted to announce the approval of the SCIG Board to proceed with the project.

“Since signing the MOU in November 2017, all parties have worked hard to advance the project.”

In late afternoon trading, Oracle Power shares were 17% higher at 1.55p.

 -- Adds share price --

View full ORCP profile View Profile

Oracle Power Plc Timeline

Related Articles

Picture of coal coming off conveyor belt
April 18 2018
Studies indicate that the Nuurstei project could become a competitive near-term producer of coking coal.
Oracle
May 03 2018
One of the highlights for Oracle last year was signing a memorandum of understanding with Sichuan Provincial Investment and Power China for the Thar project

No investment advice

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable or advisable for any specific person. You further understand that none of the information providers or their affiliates will advise you personally concerning the nature, potential, advisability, value or suitability of any particular security, portfolio of securities, transaction, investment strategy, or other matter.

You understand that the Site may contain opinions from time to time with regard to securities mentioned in other products, including company related products, and that those opinions may be different from those obtained by using another product related to the Company. You understand and agree that contributors may write about securities in which they or their firms have a position, and that they may trade such securities for their own account. In cases where the position is held at the time of publication and such position is known to the Company, appropriate disclosure is made. However, you understand and agree that at the time of any transaction that you make, one or more contributors may have a position in the securities written about. You understand that price and other data is supplied by sources believed to be reliable, that the calculations herein are made using such data, and that neither such data nor such calculations are guaranteed by these sources, the Company, the information providers or any other person or entity, and may not be complete or accurate.

From time to time, reference may be made in our marketing materials to prior articles and opinions we have published. These references may be selective, may reference only a portion of an article or recommendation, and are likely not to be current. As markets change continuously, previously published information and data may not be current and should not be relied upon.

© Proactive Investors 2018

Proactive Investors Limited, trading as “Proactiveinvestors United Kingdom”, is Authorised and regulated by the Financial Conduct Authority.
Registered in England with Company Registration number 05639690. Group VAT registration number 872070825 FCA Registration number 559082. You can contact us here.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use