ISLAMABAD: Petroleum Exploration (Pvt) Limited (PEL) has suffered a legal defeat after the High Court of Justice, Business and Property Courts of England and Wales (the English Court) dismissed PEL’s appeal against an International Chamber of Commerce (ICC) arbitral award in favour of Frontier Holdings Limited (FHL) and Spud Energy Pty Limited (Spud).
The English Court ordered PEL to pay legal costs of approximately USD0.524 million to FHL and Spud within 14 days of the order.
The dispute stems from PEL’s unlawful attempt to forfeit FHL’s 27.5 percent working interests in the Badin IV South and Badin IV North (together the ‘Badin Blocks’). FHL and Spud commenced ICC arbitration to challenge the forfeiture.
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The ICC Arbitral Tribunal ruled unequivocally in favour of FHL and Spud, declaring PEL’s forfeiture attempt unlawful and ordering PEL to pay damages of approximately USD 9 million (as of December 2025). These damages carry compound interest at 2percent per month, that will continue to accrue until payment is made in full. The ICC Tribunal dismissed counterclaims totalling USD 483 million, finding that PEL failed to substantiate any of its allegations.
The English Court’s judgment reaffirms FHL’s continued lawful ownership of its 27.5percent working interest in the Badin Assets. This outcome represents a major legal victory for FHL and Spud and reinforces the finality and enforceability of the ICC arbitral award. Proceedings for recognition and enforcement of the award are currently pending before the Islamabad High Court.
Copyright Business Recorder, 2026
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