Islamabad [Pakistan], April 9 : Pakistan's civil judge imposed a fine of USD 2.48 million on the Chinese petroleum firm, "China National Petroleum Corporation" for allegedly volating the contract it signed with the Petroleum Exploration (Private) Limited, a local company, Dawn reported.
In the judgement, Civil judge Syed Mohammad Zahid Termizi passed a preliminary decree of USD 2.48 million in favour of the local company.
In 2001, CNPC came to Pakistan as a service provider to exploration and production compes in the fields of rigs and drilling. In the first decade of 21st century, Pakistan was deemed a great potential for exploration and production compes and saw a great influx of foreign compes.
But with great influx associates, comes greater competition and CNPC found it difficult to establish and generate business with such foreign competitive compes, reported the Dawn.
Considering the need of time and to get a necessary headstart, CNPC entered into an agreement with the local company to help procure drilling works for CNPC against a commission for each work procured in favour of CNPC.
From its inception to date, CNPC with the help of the local company, procured drilling contracts and was able to maintain its operation in Pakistan, now comprising over two decades.
The local company petitioned before the court against the alleged violation contractual obligations by CNPC, reported Dawn.
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