PXP Energy enters into settlement on dispute with partner over Peru venture

Bilyonaryo Manny V. Pangilinan-led PXP Energy Corp. will be paid $9.6 million to settle a dispute with its partner Karoon Gas Australia over their oil exploration project in Peru.

The amount is less than a tenth of the $100 million PXP originally sought from its Australian partner allegedly due to breach of obligations, including drilling a second well in Peru Block Z-38.

Pitkin Petroleum Ltd. (PPL), a 53.4 percent-owned subsidiary of PXP, has a 25% participating interest in Peru Block Z-38.

Under the deed of settlement, Karoon Gas has agreed to pay $9.6 million in cash to PPL in full and final settlement of all claims by Pitkin Peru and its associates in connection with Block Z-38.

The deed will be effective upon the receipt of the settlement sum by PPL within 3 business days upon signing of the deed.

Peru Block Z-38 was placed on force majeure from March 16 to November 27, 2020 due to the lockdowns imposed to curb the spread of COVID-19.

The post PXP Energy enters into settlement on dispute with partner over Peru venture first appeared on Bilyonaryo Business News.

PXP Energy enters into settlement on dispute with partner over Peru venture
Source: Filipino Daily Inquirer