KARACHI: In a notification sent to the bourse on Friday, Pakistan Petroleum Limited (PPL) announced a settlement of a court case with Asia Resources Oil Limited (AROL).
The notification read “Asia Resources Oil Limited (AROL) which, inter alia, provided for the withdrawal of a Civil Suit No. 530/2016 (Civil suit) filed by AROL in the High Court of Sindh at Karachi and the payment by AROL to the Company of all outstanding cash calls along with late payment surcharge in respect of Gambat South, Naushahro Firoz and Kotri North blocks.”
As a result, settlement agreements were eventually executed on 17th March 2017 between PPL and AROL regarding Naushahro Firoz and Kotri North blocks. PPL, AROL and Government Holdings (Private) Limited (GHPL) reached out to an agreement in respect of the Gambat South block.
All the three companies then filed a joint compromise application in the civil suit and on 10th May 2017 the Civil Suit was decreed in terms of the Settlement Agreements. Then AROL withdrew its case on its own volition on the 10th of May 2017 and was disposed of.
After PPL reached a settlement agreement, AROL paid $54.8m to the former for in respect of the Gambat South and Kotri North blocks in lieu of its outstanding liabilities (including the final settlement amount and current cash calls). AROL’s outstanding liabilities for Gambat South and Kotri North blocks now stand settled read the notification.
In lieu of non-payment of settlement fee by AROL for Naushahro Firoz block, its 10pc working interest therein would stand relinquished and taken over by PPL as per agreement reached.
At the time of filing this report PPL’s shares were trading at Rs177.0, down Rs1.53 from its opening on Friday. KSE-100 index was trading at 41.125.63 points, down 283.86 points from its opening on Friday.