Syed Mohammad Zahid Termizi, a civil court, awarded the local business a preliminary decree for USD 2.48 million in his ruling.
According to Dawn, a Pakistani civil judge fined the Chinese oil corporation “China National Petroleum Corporation” USD 2.48 million for allegedly breaching a contract it had with the local business Petroleum Exploration (Private) Limited.
Syed Mohammad Zahid Termizi, a civil court, awarded the local business a preliminary decree for USD 2.48 million in his ruling.
CNPC arrived in Pakistan in 2001 to offer drilling and rig services to exploration and production businesses. Pakistan experienced a significant influx of international businesses throughout the first ten years of the twenty-first century and was seen as having enormous potential for exploration and production enterprises.
However, higher competition results from a large influx of partners, and CNPC found it challenging to create and grow business with such overseas competing enterprises, according to the Dawn.
In order to save time and acquire a necessary head start, CNPC and the local business entered into a contract for the local business to assist CNPC in obtaining drilling services in exchange for a commission on each job secured in CNPC’s favour.
With the assistance of the local business, CNPC was able to secure drilling contracts from the beginning and sustain its activity in Pakistan, which has been going on for more than 20 years.
According to Dawn, the local business petitioned the court on the alleged breach of contract by CNPC.
