Oracle Power PLC (AIM: ORCP), is pleased to announce the signing of a Memorandum of Understanding (MoU) between its subsidiary Oracle Energy and PetroChina International (Middle East) Company Limited (“PCME”) for cooperation and joint development of commercial avenues for Oracle Energy’s planned Green Hydrogen Project (or the “Project”) in Sindh, Pakistan.
PCME has agreed to arrange the potential offtake for the Green Hydrogen output and carbon credits from the Project. PCME has vast experience in trading of oil across the world and is desirous to explore and develop its business through new energy sources such as green hydrogen.
Memorandum of Understanding
Oracle Energy and PCME signed the MoU to jointly cooperate, on a non-binding basis, in the commercialisation of the Project, with Oracle Energy to supply and deliver Green Hydrogen to PCME from it. PCME will arrange offtake for the Green Hydrogen and arrange for trade of associated carbon credits, after establishing viability through analysis of feasibility reports of the Project and subject to price, quality and its board’s approval.
PCME shall have the right of first refusal (ROFR) to enter into a mutually agreed long term or spot cargo(es) contract to purchase all or part of the Green Hydrogen and carbon credits from the Project. Oracle Energy shall, prior to financial close, ask PCME to meet the best offer for a long-term purchase of all or part of the Green Hydrogen, with or without the carbon credits. In the event that PCME declines to meet the best offer, the ROFR for PCME shall lapse. Furthermore, PCME will have the ROFR to match the best offer received by Oracle Energy in relation to any available spot cargoes and/or any available carbon credits which have not been agreed to be sold/traded through any long-term agreement signed before financial close.
The MoU is effective from 2 June 2023 and is valid for five years from the date when the Green Hydrogen is first produced from the Project, with the option of mutually extending the MoU. The MOU signing was witnessed by a representative from State Grid Corporation of a China, which recently signed an agreement with Oracle Energy through CET, its subsidiary, to be a potential investor and has commenced work on studies.
Oracle Energy, which is the joint venture between Oracle Power and His Highness Sheikh Ahmed Dalmook Al Maktoum, is currently developing a 400MW Green Hydrogen Project in Pakistan, with a target output of 55,000 tonnes of high purity Green Hydrogen.
Naheed Memon, CEO of Oracle Power, commented:
“The signing of this MoU with PCME is another huge step forward as we line up another significant potential offtaker. PetroChina is a large oil and gas trader and can potentially provide our Project a commercially viable route to market. Our Green Hydrogen Project development is advancing swiftly and this understanding is a testament to the trust some of the largest companies in the world are putting in our ability to develop this important project which could meet regional demand for green hydrogen and green ammonia.”
For further information:
Oracle Power PLC
Naheed Memon (Chief Executive Officer)
+44 (0) 203 580 4314
Strand Hanson Limited (Nominated Adviser & Broker)
Rory Murphy, Matthew Chandler, Rob Patrick
+44 (0) 20 7409 3494
Buchanan
Bobby Morse/ Oonagh Reidy/ Abigail Gilchrist
+44 (0) 20 7466 500
[email protected]
About PetroChina
The Dubai-headquartered PetroChina International (Middle East) Company is an established oil trader and developer of new energy business opportunities and is a wholly-owned subsidiary of PetroChina International Co. Ltd, which is, in turn, is the listed arm of state-owned China National Petroleum Corporation (CNPC), one of the largest oil and gas producers in Asia.
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