PPL reaches amicable settlement with PDIL, Descon Engineering over GPF-II and Adhi-III disputes

Pakistan Petroleum Limited (PPL) has reached an amicable settlement with Presson Descon International (Private) Limited (PDIL) and Descon Engineering Limited (DEL) over disputes linked to two Engineering, Procurement, Construction and Commissioning (EPCC) projects.

In a disclosure to the Pakistan Stock Exchange on Thursday, PPL stated that it had “reached an amicable settlement” with PDIL and DEL in respect of disputes arising from the Gambat South Gas Processing Facility-II (GPF-II) and the Adhi LPG & NGL Recovery Plant-III (Adhi-III).

According to the filing, the disputes mainly concerned “liquidated damages imposed by PPL and claims for withheld retention money, requests for Extension of Time and cost claims” under the respective contracts. The matters had been taken to the Sindh High Court/Civil Court Karachi, with referrals to arbitration in accordance with contractual provisions.

The company said that while court proceedings were ongoing, the parties engaged in parallel negotiations. Following discussions spanning about a year, they agreed to resolve all outstanding matters “on an ‘as of today’ basis,” and confirmed that pending court cases would be withdrawn.

PPL further stated that under the settlement, “the GPF-II and Adhi-III contracts shall be treated as fully concluded, with no further or future liabilities or claims arising out of or in connection therewith.”

The company noted that the agreement allows closure of long-standing disputes and avoids prolonged arbitration proceedings.