Pakistan Petroleum Limited (PPL) has reached an amicable settlement with Descon-linked companies, resolving long-standing disputes related to two major engineering projects and removing a key overhang on its operations.
The company disclosed that the settlement has been reached with Presson Descon International (Private) Limited (PDIL) and Descon Engineering Limited (DEL), covering disputes arising from two Engineering, Procurement, Construction, and Commissioning projects.
These projects include the Gambat South Gas Processing Facility II and the Adhi LPG and NGL Recovery Plant III, both of which had been under dispute for several years.
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The disagreements primarily revolved around liquidated damages, withheld payments, extension of time requests, and cost claims raised by the contractors. The matters had previously escalated to court proceedings and arbitration, indicating the complexity and scale of the dispute.
However, after prolonged negotiations alongside ongoing legal proceedings, both parties have now agreed to resolve all outstanding issues on an “as of today” basis. As part of the agreement, all pending court cases will be withdrawn.
PPL stated that the contracts related to both projects will now be treated as fully concluded, with no further claims or liabilities remaining between the parties.
PPL, one of Pakistan’s leading oil and gas exploration and production companies, continues to play a central role in the country’s energy supply chain, with operations spanning multiple upstream projects and strategic partnerships.