ISLAMABAD: Two foreign oil and gas companies Frontier Holdings Limited (“FHL”) and Spud Energy Pty Limited (“SEPL”) have won International Chamber of Commerce (“ICC”) arbitration against Petroleum Exploration (Private) Limited (“PEL”).
FHL and SEPL initiated ICC arbitration proceedings against PEL for its unlawful attempt to forfeit FHL’s 27.5% working interests in Badin IV South and Badin IV North Blocks (together the “Badin Blocks”) respectively.
The ICC Arbitral Tribunal has not only provided all relief to FHL and SEPL but has also dismissed PEL’s gigantic counterclaims of US$ 483 million, declaring that the respondent (PEL) has not been able to substantiate any of its claims.
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The ICC Arbitral Turbinal ruled that PEL breached the Settlement Agreement and its attempt to forfeit FHL’s working interests in the Badin Blocks is declared invalid, thereby, FHL retains its 27.5% working interest in the Badin Blocks. Moreover, FHL and SEPL are awarded damages against PEL of approximately US$7 million which includes interest at the rate of 2% per month on a compound basis.
The interest will continue to accumulate on the damages awarded until the receipt of damages and interest by FHL and SEPL. FHL and SEPL are working for the enforcement of the arbitral award against PEL through courts in Pakistan.
Copyright Business Recorder, 2024
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