logo-loader
viewOracle Power PLC

Oracle Power encouraged by stance of new Pakistani government

Once all the approvals, permits and tariffs are in place, Oracle’s partners will arrange the finance with Sinosure and Chinese banks.

Coal
Coal-fired power is welcome in Pakistan

Oracle Power PLC (LON:ORCP) has completed a £450,000 raise that leaves it funded through to the first quarter of 2019.

The outstanding balance of £85,000 came through in November, said the thermal power station group.

Oracle is developing a 700Mw coal-fired electricity plant in Pakistan’s Thar province.

A new government led by former test cricketer Imran Khan took over following a general election in July and it has confirmed support for indigenous coal-fired power generation in Pakistan and the Thar desert in particular.

“At a recent China Pakistan Economic Corridor ("CPEC") review meeting led by the Pakistani Minister of Planning and Development, attended by the Chinese Ambassador to Pakistan, support was affirmed for priority list energy and infrastructure projects, of which Oracle's project in Thar Block VI is one,” it said in a statement in September.

At project level, Oracle is awaiting the formal approval of a notice to proceed and letter of intent from Pakistan’s Private Power Infrastructure Board following an indication of approval earlier in the year.

Following that, Oracle will be required to lodge a performance bond of US$700,000.

After that, a full EPC (construction) and O&M (operation & maintenance) proposal from its Chinese partners is needed.

That will be followed by an electricity tariff petition submission and completion the Environmental and Social Impact Assessment approval.

Oracle signed a MoU with Chinese groups Sichuan Provincial and PowerChina last November ahead of a formal agreement to build and operate the Thar project.

The consortium (TEPL) will seek a 30-year Power Purchase Agreement (PPA) with Pakistan’s Central Power Purchasing Authority.

A coal supply agreement between TEPL and Sindh Carbon Energy Limited, Oracle's subsidiary which owns and operates the mine, is also required as is an Implementation Agreement between TEPL and Pakistan government. 

Once all the approvals, permits and tariffs are in place, Oracle’s partners will arrange the finance with Sinosure and Chinese banks.

The initial phase of development carries a capital cost of US$1.6bn and is for a gross 4mln tonnes per annum mine, feeding a 700MW power plant.

Phase 2 of the project will see capacity expand to 1,400 Mw.

Under the terms of the MoU, Oracle will hold a 12.1% equity stake while its two Chinese partners SCIG and Power China will initially own 78% and 9.9% respectively.

Quick facts: Oracle Power PLC

Price: 0.445 GBX

AIM:ORCP
Market: AIM
Market Cap: £6.94 m
Follow

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events

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...

In exchange for publishing services rendered by the Company on behalf of Oracle Power PLC named herein, including the promotion by the Company of Oracle Power PLC in any Content on the Site, the Company receives from...

FOR OUR FULL DISCLAIMER CLICK HERE

Watch

Investor Update: Oracle Power's Pakistan block recognised as potential...

Headlines from the Proactive UK newsroom. Oracle Power PLC’s (LON:ORCP) resource on Block VI at Thar in Pakistan has been officially recognised as a potential coal gasification into fertiliser project. Pakistan is estimated to face a sizeable fertiliser shortage by 2026. Arc Minerals Ltd...

3 weeks, 1 day ago

RNS

Holding(s) in Company

1 day, 17 hours ago

Holding(s) in Company

6 days, 21 hours ago

Second Price Monitoring Extn

1 week, 2 days ago

Price Monitoring Extension

1 week, 2 days ago

Holding(s) in Company

1 week, 2 days ago

Second Price Monitoring Extn

1 week, 2 days ago

Price Monitoring Extension

1 week, 2 days ago

2 min read