By John Lee.
Pakistan Petroleum Limited (PPL) has announced that its subsidiary, PPL Asia E&P B.V. (PPL Asia), has reached what it describes as "a mutually favourable settlement" with Iraq's state-owned Middle Oil Company, successfully concluding all matters relating to the Exploration, Development, and Production Service Contract (EDPSC) for Block-8 in in the Diyala and Wasit governorates.
The settlement agreement was officially signed on 6th October 2024 in Baghdad, Iraq, by Mr. Imran Abbasy (pictured), Managing Director of PPL Asia, and Mr. Muhammad Yaseen Hassan, Director General of MdOC.
According to a statement issued through the Pakistan Stock Exchange:
"Under the terms of the settlement agreement, MdOC, through a third party, will make a net payment of USD 6 million to PPL Asia.
"This settlement, the result of sustained negotiations with Iraqi authorities, marks a significant milestone for PPL Asia and the Company, in successfully concluding their contract in Block-8 while securing and safeguarding their financial interests."
The contract was originally awarded in Iraq's fourth licensing round in 2012, at a remuneration of $5.38 per barrel of oil.
In September 2024, the Iraqi cabinet approved an agreement under which PPL would terminate its contract at Block 8.
(Source: Pakistan Stock Exchange)
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