PPL Asia E&P B.V. (PPL Asia), a subsidiary of Pakistan Petroleum Limited (PPL), has reached a settlement with Midland Oil Company (MdOC), a state-owned Iraqi oil entity, for Block-8 in Iraq.

PPL, one of Pakistan’s largest exploration and production (E&P) companies, shared the development in a notice to the Pakistan Stock Exchange (PSX) on Monday.

“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,” said PPL in a statement.

“The settlement successfully concludes all matters relating to the Exploration, Development, and Production Service Contract (EDPSC) for Block-8 in Iraq,” it added.

As per the notice, 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.

The company said the settlement is 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”.

As per PPL’s latest financial results, the company saw its profit-after-tax (PAT) jump by nearly 19% to clock in at Rs115.48 billion for the fiscal year ended June 30, 2024.

Earnings per share (EPS) were recorded at Rs42.44 in FY24, compared to Rs35.73 in the same period last year (SPLY). Experts said the earnings were lower than market expectations.

PPL was incorporated in Pakistan in 1950 with the main objectives of exploring, prospecting, developing, and producing oil and natural gas resources.