Zhenhua Backs Out of Iraq Venture; PPL to Proceed Alone
The Chinese firm Zhenhua has decided not to partner with Pakistan Petroleum Limited (PPL) in a bid for an exploration block in Iraq due to security issues, the Express Tribune reports.
“The News”, however, reports that Zhenhua walked out on the deal because a re-drawing of the boundary of the Bloc-9 meant “the opportunity became sub-economical for Zhenhua”.
Despite the development, Pakistan’s Economic Coordination Committee (ECC) has approved PPL’s plan to proceed with the project.
The company’s had been expected to make an investment of $200 million if their bid would have been accepted. PPL would have had 49% stake and Zhenhua 51% share, with the right to increase its share up to 70%.
“PPL is still in favour of investing in Iraq despite its partner walking away,” officials said.
(Source: Express Tribune, The News)