Oman Oil gets 49% stake in Pakistan’s Orient Power
Posted: 16 October 2006
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The government-owned Oman Oil Company has acquired a 49% stake in Pakistan ’s Orient Power Company.
The 450MW power plant will be constructed in two phases at Balloki, just outside the city of Lahore . Mulham Al Jarf, deputy chief executive officer of Oman Oil Company; and Nadeem Babar, chief executive officer of Orient Power Company; signed the shareholders’ agreement in Karachi.
“This project represents a groundbreaking investment for Oman Oil Company in Pakistan especially when its meets our international investment guidelines,” said Mulham Al Jarf, deputy chief executive officer of Oman Oil.
“Our shared vision in terms of long-term commitment to the region for infrastructure development, coupled with the strong bond between Oman and Pakistan , makes for very beneficial partnership. We hope that this will be the first of many investments for Oman Oil in Pakistan ,” said Nadeem Babar, CEO of Orient Power Company.
“Phase I of the project is expected to cost around $181 million. The plant is designed as a combined cycle gas-fired project. The plant is scheduled to be completed in two years, and is expected to be operational in late 2008,” official sources said.
Sui Northern Gas Pipeline will supply natural gas, under a long-term supply contract and all the power produced will be sold to National Transmission and Dispatch Company under a long-term power sales agreement.
The project will be connected directly into the Lahore Grid, and on completion of both phases, it is expected to provide nearly 20% of the power requirements of Lahore . |
