KARACHI: The Pakistan Petroleum Limited (PPL) Asia has reached at an amicable settlement with Midland Oil Company (MdOC) that brings closure to PPL’s operations in block-8 Iraq while securing a net payment of US$ 6 million.
The settlement between Pakistan Petroleum Limited (PPL) Asia E&P B.V., a subsidiary of PPL, and Midland Oil Company (MdOC) marks the conclusion of their Exploration, Development and Production Service Contract (EDPSC) for Block-8, Iraq, which expired in May 2022, said a statement on Monday.
“Efforts to resolve the lingering settlement from 2022 involved addressing longstanding disputes and claims between the parties,” it said adding that sustained negotiations and legal efforts by PPL Asia resulted in to signing an agreement on October 6, 2024, by PPL’s MD and CEO Imran Abbasy and MdOC’s DG Muhammad Yaseen Hassan.
“A significant milestone in these efforts was the net settlement of USD 6 million, with MdOC paying through a third party,” the statement further informed and added that after over two years of engagement the final resolution closed all matters related to the contract without either side admitting fault or liability.
The agreement not only brought closure to PPL’s operations in Block-8 but also delivered a valuable foreign exchange recovery for the company and Pakistan, it stated.
