In order to save time and acquire a necessary head start, CNPC and the local business in Pakistan had entered into a contract for the local business to assist CNPC in obtaining drilling services in exchange for a commission on each job Image Courtesy AP
Islamabad: A civil court in Pakistan has imposed a fine of $2.48 million on Chinese petroleum firm ‘China National Petroleum Corporation’ for allegedly violating its contract with a local company.
According to a report by the Dawn newspaper, the court in Pakistan has imposed a penalty of $2.48 million on Chinese petroleum firm China National Petroleum Corporation was penalised for allegedly violating its contract with Petroleum Exploration (Private) Limited.
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.
Yet, higher competition results from a large influx of partners, and CNPC found it challenging to create and grow business with such overseas competing enterprises.
In order to save time and acquire a necessary head start, CNPC and the local business in Pakistan had 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 firm, 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.
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