Karachi, October 7, 2024 – Pakistan Petroleum Limited (PPL) has disclosed the successful conclusion of a long-standing contractual matter with Midland Oil Company (MdOC) of Iraq, culminating in a strategic settlement agreement concerning Block-8 in Iraq.
This landmark settlement, communicated to the Pakistan Stock Exchange (PSX) on Monday, underscores PPL’s continued efforts to safeguard its financial interests and enhance its standing in international energy markets.
In its official communication, PPL revealed that its subsidiary, PPL Asia E&P B.V. (PPL Asia), had entered into a mutually advantageous agreement with MdOC, a state-owned Iraqi oil company. The settlement resolves all outstanding issues related to the Exploration, Development, and Production Service Contract (EDPSC) for Block-8. The successful culmination of these negotiations follows prolonged and intricate discussions with Iraqi authorities, paving the way for the finalization of the deal.
The formal signing of the settlement took place in Baghdad on October 6, 2024. The agreement was executed by Imran Abbasy, Managing Director-A of PPL Asia, and Muhammad Yaseen Hassan, Director General of MdOC, in a high-level ceremony. Both parties expressed satisfaction with the resolution, highlighting the collaborative spirit that guided the negotiations and eventual settlement.
Under the terms of the settlement, MdOC has committed to a net payment of USD 6 million to PPL Asia, facilitated through a third party. This financial recompense is viewed as a substantial achievement, representing PPL Asia’s ability to secure its economic interests in a challenging international environment. The resolution also underscores the significance of fostering cooperative ties between Pakistani and Iraqi energy sectors, reinforcing trust and paving the way for potential future collaborations.
The agreement holds particular importance for PPL as it marks a decisive conclusion to its engagement with Block-8 while simultaneously safeguarding the company’s long-term financial interests. This outcome is expected to bolster investor confidence in PPL’s strategic direction, particularly in its international ventures.
In compliance with regulatory requirements, the disclosed information has been submitted under Section 96 of the Securities Act, 2015, and Clause 5.6.1(a) of PSX Regulations, ensuring transparency and timely dissemination to shareholders and market participants.
The successful settlement not only closes a significant chapter for PPL in Iraq but also underscores the company’s resilience and diplomatic acumen in navigating complex international markets. PPL’s continued focus on capitalizing on such strategic opportunities highlights its commitment to expanding its global footprint while maintaining financial prudence.