PPL Asia E&P B.V. (PPL Asia), a subsidiary of Pakistan Petroleum Limited (PPL), has received a settlement amount of $6 million from Midland Oil Company (MdOC), a state-owned Iraqi oil entity.
PPL, one of Pakistan’s largest exploration and production (E&P) companies, shared the development in its notice to the Pakistan Stock Exchange (PSX) on Monday.
“This is further to our letter regarding the successful settlement with Midland Oil Company (MdOC) in respect of the Exploration, Development, and Production Service Contract (EDPSC) for Block-8, Iraq.
“We are now pleased to notify that PPL Asia E&P B.V. (PPLA), a wholly-owned subsidiary of the company, has received the amount of $6 million on 3rd January 2025 in relation with the closeout of the above referred EDPSC,” stated the notice.
PPL highlighted that the payment marks the successful conclusion of the closeout and settlement.
In October 2024, PPL Asia finalised a settlement with Midland Oil Company for Block-8 in Iraq.
The settlement agreement was officially signed on October 6, 2024, in Baghdad, Iraq, by Imran Abbasy, Managing Director-A of PPL Asia, and Muhammad Yaseen Hassan, Director General of MdOC.
“Under the terms of the settlement agreement, MdOC, through a third party, will make a net payment of $6 million to PPL Asia,” PPL informed back then.
The company added that the settlement was a 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”.
PPL Asia had been awarded the licence for the EDPSC for Block-8 in Iraq back in 2012 and drilling was initiated in April 2019 at Block-8’s Madain-1 well, which led to the discovery of a sub-commercial volume of oil in FY20. Consequently, the well was plugged and abandoned.
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