KARACHI: Midland Oil Company (MdOC), a state-owned Iraqi oil company, and PPL Asia E&P B.V. (PPL Asia), a subsidiary of Pakistan Petroleum Ltd (PPL), have struck a friendly $6 million settlement for Block-8 in Baghdad.
Their Exploration, Development, and Production Service Contract (EDPSC) for Block-8 in Iraq has come to an end with this settlement; it was slated to expire in May 2022.
A noteworthy achievement in these efforts, according to PPL’s stock report on Monday, was the $6 million net settlement, which MdOC made through a third party. This ultimate settlement concluded all issues pertaining to the agreement without acknowledging fault or liability on the part of either party, demonstrating the deliberate and tenacious efforts to reach a mutually beneficial conclusion following more than two years of involvement.
PPL continued, saying that this completes the business’s activities in Block-8 and yields a significant foreign exchange recovery for both Pakistan and the corporation.
In order to conclude the outstanding settlement from 2022, the parties’ long-standing disagreements and claims have to be addressed. PPL Asia’s dedication to reaching a settlement is evidenced by the long-term talks and legal actions that led to an agreement that MdOC Director-General Muhammad Yaseen Hassan and PPL Managing Director and Chief Executive Officer Imran Abbasy signed on October 6.
