Oracle Power Shares Rise As Chinese Partner Confirms Participation

9th Mar 2018 10:10

LONDON (Alliance News) - Shares in Oracle Power PLC rose on Friday as the company said partner Sichuan Provincial Investment Group has formally approved its role in the Block VI joint venture.

The stock was trading at 1.52 pence per share on Friday, up 15%.

Oracle signed a memorandum of understanding in November with Sichuan Provincial and PowerChina International Group Ltd over the project, located in the Thar desert in Pakistan's Sindh province.

The partners now need to obtain the necessary approvals and licences as required by the Chinese and Pakistani governments.

The two Chinese partners have undertaken preparatory work on the project and are now completing due diligence, which Oracle believes will be finished in the second quarter of 2018.

This approval by Sichuan Provincial, Oracle said, is a key part in finalising the first of two steps on the project. Once the first stage is completed, the next will be to get Chinese government approval, after which a final development decision will be made. Chinese government approval is expected "in a timely fashion".

Chief Executive Shahrukh Khan said: "I am delighted to announce the approval of the SCIG board to proceed with the project. Since signing the MOU in November 2017, all parties have worked hard to advance the project. We now enter into an exciting new stage in Oracle's evolution."