By John Lee.
Iraq's Council of Ministers has approved a settlement terminating Pakistan Petroleum Limited (PPL)'s contract for Exploration Block 8.
The recommendation to terminate came from the Ministerial Council for Energy, and involved the state-controlled PPL and the Ministry of Oil's Middle Oil Company.
The settlement agreement includes closing all mutual obligations by paying $6 million from Midland Oil Company to PPL, with payment made from the financial allocations of the licensing round dues.
Block 8 lies within the east central part of Iraq, about 40 km east of Baquba and about 110 km east of Baghdad and covers an area of around 6,000 km2.
The contract with PPL was granted in the Fourth Licensing Round (2012), at a remuneration of $5.38 per barrel of oil.
(Source: PMO)
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