PPL Asia Secures $6 Million Settlement with Iraq's Midland Oil Company

Pakistan Petroleum Limited (PPL) has made significant strides in the international oil market through its subsidiary, PPL Asia E&P B.V. Recently, the company announced a successful settlement with Midland Oil Company (MdOC), a state-owned entity in Iraq, concerning Block-8. This development is crucial as it highlights PPL's commitment to expanding its operations beyond Pakistan and securing its financial interests in foreign territories.

In a formal notice to the Pakistan Stock Exchange (PSX), PPL expressed its satisfaction with the outcome of the negotiations. The statement read, “The company is pleased to announce that its subsidiary, PPL Asia E&P B.V. (PPL Asia), has reached a mutually favourable settlement with Midland Oil Company (MdOC), a state-owned Iraqi oil company.” This agreement effectively resolves all issues related to the Exploration, Development, and Production Service Contract (EDPSC) for Block-8 in Iraq.

The settlement 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 this agreement, MdOC will make a net payment of $6 million to PPL Asia through a third party. This financial transaction is a testament to the hard work and sustained negotiations that PPL Asia has undertaken with Iraqi authorities.

PPL emphasized that this settlement marks a significant milestone for the company, stating, “The settlement successfully concludes all matters relating to the Exploration, Development, and Production Service Contract (EDPSC) for Block-8 in Iraq.” This achievement not only secures PPL's financial interests but also reinforces its position in the competitive oil and gas sector.

In addition to this positive development, PPL has reported impressive financial results for the fiscal year ending June 30, 2024. The company’s profit-after-tax (PAT) surged by nearly 19%, reaching Rs115.48 billion. Furthermore, earnings per share (EPS) increased to Rs42.44, compared to Rs35.73 in the same period last year. However, experts noted that these earnings fell short of market expectations, indicating that while the company is performing well, there is still room for improvement.

PPL, which was established in Pakistan in 1950, has always aimed to explore, develop, and produce oil and natural gas resources. The recent settlement with MdOC not only showcases PPL's ability to navigate complex international agreements but also reflects its ongoing efforts to enhance its operational footprint globally. As the energy landscape continues to evolve, PPL's proactive approach in securing contracts and settlements will be vital for its future growth and sustainability.

The successful settlement between PPL Asia and Midland Oil Company is a noteworthy achievement that underscores the importance of international collaboration in the oil and gas sector. As PPL continues to expand its horizons, it sets a precedent for other Pakistani companies looking to venture into global markets. This development not only benefits PPL but also contributes positively to Pakistan's economy, showcasing the potential for growth in the energy sector.