Manny V. Pangilinan-led PXP Energy Corporation said that it is settling its dispute with its Australian joint venture partner over their offshore exploration venture in Peru, though for less than a tenth of what it originally demanded for.
In its disclosure to the Philippine Stock Exchange, PXP said its subsidiary Pitkin Petroleum Limited (PPL) would be paid a Settlement Sum of $9.6 million (around Php479 million) by Australian partner KEI (Peru Z-38) Pty. Ltd. The amount is less than ten percent compared to the at least $100 million PXP asked for back in May.
PPL and KEI were partners in exploring Peru’s Z-38 petroleum block off the South American nation’s Pacific coast. PPL owned 25% of the exploration block’s consortium.
Under their Deed of Settlement and Release, the amount — to be paid in cash — serves as KEI’s “full and final settlement of all [claims in connection] with Block Z-38.”
“The said Deed will be effective upon the receipt of the Settlement Sum by PPL within [three] business days upon signing of the Deed,” the disclosure read.
PXP, which owns 53.43% of PPL, filed a case against KEI in May for allegedly breaching its obligation to drill a second well in Block Z-38.
The following month, PXP said that it will likely terminate the joint venture.