Pakistan Petroleum Ltd. (PPL) has inked a joint venture agreement with the Government of Balochistan to develop the Barytes, Lead and Zinc (BLZ) Project in Khuzdar, the company has announced.
The project, operated through PPL’s Bolan Mining Enterprises (BME) subsidiary, is expected to generate $144 million in annual revenue over a 32-year mine life, with a net present value of $355 million. PPL will finance the government’s share through internal cash flows.
BME, a partnership between PPL and the Balochistan government, currently produces drilling-grade barytes that meet American Petroleum Institute standards. The company holds four mining leases, including the Khuzdar Barytes lease, which accounts for 90% of Pakistan’s barytes reserves.
The BLZ Project remains in early development, with analysts projecting it could contribute Rs. 23 billion to PPL’s revenue once fully operational. Analysts estimate the project could add Rs. 3/share to earnings, with a valuation impact of Rs. 21/share.
Separately, PPL also 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 of Sindh province, is operated by PPL with a 63% working interest, alongside joint venture partners Mari Energies Ltd., Sindh Energy Holding Co. Ltd., and Government Holdings (Private) Ltd., which hold 32%, 2.5%, and 2.5% interests, respectively.
The joint venture will process the gas from the discovery Mari’s Sujawal Gas Processing Facility for injection into the Sui Southern Gas Company Limited 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 would 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.