KARACHI: PPL Asia E&P BV, a wholly-owned subsidiary of Pakistan Petroleum Limited (PPL), has successfully received a $6 million settlement from Iraq’s Midland Oil Company (MdOC), concluding the Exploration, Development, and Production Service Contract (EDPSC) for Block-8 in Iraq.
In a notice to the Pakistan Stock Exchange (PSX) on Monday, PPL stated, “We are pleased to notify that PPL Asia E&P BV (PPLA) has received the amount of $6 million on January 3, 2025, in relation to the closeout of the above-referred EDPSC.”
The settlement agreement, finalized and signed in October 2024 by PPL Asia Managing Director Imran Abbasy and MdOC Director General Muhammad Yaseen Hassan in Baghdad, marks the successful conclusion of negotiations with Iraqi authorities.
History of the Project
PPL Asia was awarded the EDPSC for Block-8 in 2012. Drilling operations commenced in April 2019 at the Madain-1 well, which revealed sub-commercial volumes of oil. The well was plugged and abandoned in FY20, leading to the eventual closure of operations.
Under the agreement, MdOC committed to a $6 million net payment to PPL Asia through a third party. This milestone not only reflects PPL Asia’s commitment to safeguarding its financial interests but also allows the company to close its operations in Block-8 while ensuring financial stability.
The settlement represents a pivotal achievement for PPL, bringing closure to over a decade of exploration efforts in Iraq.
