Frontier Holdings Limited (FHL) and Spud Energy Pty Limited (SEPL), two foreign oil and gas companies, have won an arbitration case against Petroleum Exploration (Private) Limited (PEL) in the International Chamber of Commerce (ICC).
According to a news report, the dispute arose when PEL attempted to forfeit FHL’s 27.5% working interests in the Badin IV South and Badin IV North Blocks, collectively referred to as the “Badin Blocks.”
Frontier Holdings and Spud Energy initiated arbitration proceedings in the International Chamber of Commerce, challenging PEL’s actions.
The ICC Arbitral Tribunal ruled in favor of FHL and SEPL, rejecting PEL’s claims and awarding full relief to the claimants. The tribunal dismissed PEL’s counterclaims of $483 million, declaring them unsubstantiated.
The tribunal further ruled that PEL had breached the Settlement Agreement, and its attempt to forfeit FHL’s working interests was invalid. Consequently, FHL retains its 27.5% working interest in the Badin Blocks.
In addition, the tribunal awarded approximately $7 million in damages to FHL and SEPL, which includes interest at a compounded rate of 2% per month. The interest will continue to accrue until the damages are fully paid.
FHL and SEPL are now pursuing the enforcement of the arbitral award through the courts in Pakistan.