Petroleum Exploration Limited loses appeal before UK court over Badin blocks dispute

Petroleum Exploration (Pvt) Limited has lost its appeal before the High Court of Justice, Business and Property Courts of England and Wales, which upheld an International Chamber of Commerce arbitral award in favour of Frontier Holdings Limited and Spud Energy Pty Limited in a dispute over petroleum interests in Sindh’s Badin blocks, Business Recorder reported. 

The UK court dismissed Petroleum Exploration’s challenge to the arbitral award and directed the company to pay approximately $0.524 million in legal costs to Frontier Holdings and Spud Energy within 14 days.

The dispute arose from Petroleum Exploration’s attempt to forfeit Frontier Holdings’ 27.5% working interest in the Badin IV South and Badin IV North blocks. Frontier Holdings and Spud Energy initiated arbitration proceedings under the ICC framework, contesting the legality of the forfeiture.

In its ruling, the ICC arbitral tribunal declared the forfeiture unlawful and ordered Petroleum Exploration to pay damages of around $9 million as of December 2025. The award carries compound interest at a rate of 2% per month, which will continue to accrue until full payment is made. 

The tribunal also rejected counterclaims amounting to $483 million, finding that they were not supported by evidence.