Pakistan Petroleum Limited (PPL) has signed an amendment to its operating agreement with the Balochistan government for the Barytes, Lead, and Zinc (BLZ) Project in Khuzdar. The update brings new lead and zinc mining areas under the existing agreement, with PPL’s mining arm, BME, continuing as operator.
The amendment, officially signed on April 9, builds upon their initial agreement from November 2004 by integrating new and promising mining territories. Notably, Mining Lease No. 16, specifically granted in December 2021 for the extraction of lead and zinc, will now fall under the umbrella of the comprehensive BLZ Project.
This strategic expansion paves the way for enhanced mining operations within District Khuzdar, leveraging the region’s significant mineral wealth.
The partnership emphasizes local employment, ensuring residents near Gunga benefit directly from the project. Both PPL and the provincial government will contribute funding in proportion to their shares, with the Balochistan government securing its portion through financing.
Based on a 2019 feasibility study by Germany’s DMT, the project is expected to generate $144 million in annual revenue and $356 million in net present value over a 32-year lifespan.
PPL says the move reflects its commitment to sustainable development and local empowerment in Balochistan’s mineral-rich region.Separately, PPL announced the start of gas production from the Upper Sand (C-Sand) reservoir of the Pateji X-1 well under the Extended Well Testing (EWT) arrangement, effective April 1, 2025.
The well, located in the Shah Bandar Block in Sindh province, is operated by PPL with a 63% working interest, alongside joint venture partners Mari Energies Ltd. (MEL), Sindh Energy Holding Co. Ltd. (SEHCL), and Government Holdings (Private) Ltd. (GHPL), which hold 32%, 2.5%, and 2.5% interests, respectively.
The joint venture plans to process gas from the Pateji X-1 discovery at MEL’s Sujawal Gas Processing Facility for injection into the Sui Southern Gas Co. Ltd. network. To support this, a 40-kilometer, 8-inch diameter flowline has been installed from the wellhead to the processing facility, enabling production to scale up to 10 million standard cubic feet per day.
PPL said the developments will help bridge Pakistan’s energy supply gap and reduce reliance on imported hydrocarbons, reinforcing the company’s commitment to long-term energy security and national economic growth.
