ISLAMABAD: Civil judge Syed Mohammad Zahid Termizi has imposed a fine of $2.48 million on China National Petroleum Corporation (CNPC) for its alleged violation of contractit signed with PetroleumExploration (Private) Limite d, a local company.

As per the details of the case, CNPC came to Pakistan in early 2001 as a service provider to exploration and production companies in the fields of rigs and drilling.

Pakistan during the first decade of 21st century was deemed a great potential forexploration and production companies and saw a great influx of foreign companies.

But great innux associates greater competition therefore CNPC found it difficult to establish and generate business with such foreign competitive companies.

Considering the need of time and to get the necessaryhead-start, 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 the inception to date, CNPC with the help of the local company, procured drilling contracts and was able tomaintain its operation in Pakistan, now comprising over two decades.

The local company petitioned before the court against the alleged violation contractual obligations by CNPC.

The court passed a preliminary decree of $2.48 million in favour of the local company.