Pakistan Petroleum Limited (PPL) has formally undertaken development and exploration of Gas fields in Diyala and Wasit Provinces of Iraq, after winning the contract last year.
The initial contract to this effect has already been approved by the Iraqi Council of Ministers. The fields are spread over areas of 6,000 sq km. The winning bid was a major success for PPL, and it has become the first-ever Public Sector Company of Pakistan to enter into international exploration and production, said Pakistan ambassador to Iraq Shah M. Jamal, while talking with the visiting media delegation here Tuesday.
The contract won by the PPL is basically a service contract on which dollar 5.38 per barrel of oil eventually extricated would be paid by the government of Iraq. The PPL has also worked out the price of crude oil and condensate with gas to incorporate it in the contract. Now, the project is going through implementation process, he added.
Ambassador Jamal further said, the contract paved the way for Pakistani investment of approximately dollar 100 million in development of the gas fields and export of Pakistani skilled and unskilled manpower to Iraq oil sector.
He said there are bright prospects for other Pakistan companies to come to Iraq for finding investment opportunities and to develop more and more economic collaboration between the two countries.
Pakistani businessmen need to explore here the available opportunity to run their business in various fields like health and education in the long-term basis, he added. The Iraqi government has already assured its all-out support to Pakistani entrepreneurs for undertaking joint ventures with their Iraqi counterparts.
The oil exploration work undertaken by PPL will help the country to make a mark in the international oil and gas field.
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