Zhenhua Backs Out of Iraq Venture; PPL to Proceed Alone

The Chinese firm Zhenhua has decided not to partner with Pakistan Petroleum Limited (PPL) in a bid for an exploration block in Iraq due to security issues, the Express Tribune reports.

"The News", however, reports that Zhenhua walked out on the deal because a re-drawing of the boundary of the Bloc-9 meant "the opportunity became sub-economical for Zhenhua".

Despite the development, Pakistan's Economic Coordination Committee (ECC) has approved PPL’s plan to proceed with the project.

The company's had been expected to make an investment of $200 million if their bid would have been accepted. PPL would have had 49% stake and Zhenhua 51% share, with the right to increase its share up to 70%.

“PPL is still in favour of investing in Iraq despite its partner walking away,” officials said.

(Source: Express Tribune, The News)

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