Karachi, January 6, 2025 – Pakistan Petroleum Limited (PPL) has officially announced the successful settlement with Midland Oil Company (MdOC) regarding Block-8 in Iraq, marking a key achievement in the company’s international operations. This announcement was made through a communication sent to the Pakistan Stock Exchange (PSX) on Monday.
According to the notification, PPL Asia E&P B.V. (PPLA), a wholly-owned subsidiary of PPL, has received a payment of $6 million on January 3, 2025, as part of the closure of the Exploration, Development, and Production Service Contract (EDPSC) for Block-8. This receipt signifies the successful conclusion of the settlement, which involved extended negotiations with Iraqi authorities.
The settlement process was first disclosed in an earlier communication to the PSX on October 7, 2024. At that time, PPL revealed that its subsidiary, PPL Asia, had reached a mutually favorable agreement with Midland Oil Company, a state-owned Iraqi oil entity. The settlement agreement was officially signed on October 6, 2024, in Baghdad, Iraq, by Mr. Imran Abbasy, Managing Director-A of PPL Asia, and Mr. Muhammad Yaseen Hassan, Director General of MdOC.
As part of the terms outlined in the agreement, MdOC, through a third-party intermediary, will make a net payment of $6 million to PPL Asia. This settlement serves as the final closure of the EDPSC, effectively resolving all outstanding matters related to the contract in Block-8. The resolution follows several rounds of negotiations and represents a significant achievement for PPL Asia, as it successfully concludes its operations in the region while securing its financial interests.
For PPL, this settlement marks a key milestone in its international portfolio, reinforcing its commitment to safeguard its business interests and navigate complex contractual negotiations. This accomplishment enhances PPL’s overall position in the energy sector, demonstrating its capability to manage and resolve international ventures effectively. The company’s focus on long-term, sustainable growth continues as it moves forward with other initiatives.