Karachi: Pakistan Petroleum Limited (PPL) Asia E and P B.V., a subsidiary of PPL, and Midland Oil Company (MdOC) have successfully concluded a settlement agreement regarding the Exploration, Development and Production Service Contract (EDPSC) for Block-8 in Baghdad, Iraq, initially set to expire in May 2022. This resolution ends longstanding disputes between the two entities over the oil block.

According to Pakistan Petroleum Limited, the agreement was signed on October 6, 2024, by PPL’s Managing Director/CEO, Mr. Imran Abbasy, and MdOC’s Director General, Mr. Muhammad Yaseen Hassan. The settlement, resulting from over two years of sustained negotiations and legal efforts, involved a net payment of USD 6 million to PPL Asia through a third party. The resolution of these disputes marks a significant close to lingering issues from the contract that had expired over two years ago, without any admission of fault or liability from either party.

The finalization of this agreement not only signifies the end of PPL’s operational involvement in Block-8 but also secures a notable foreign exchange recovery for the company and contributes positively to Pakistan’s economic interests abroad.