ISLAMABAD: In a significant legal triumph, Frontier Holdings Limited (FHL) and Spud Energy Pty Limited (SEPL) have won an arbitration case against Petroleum Exploration (Private) Limited (PEL) at the International Chamber of Commerce (ICC). The dispute revolved around PEL’s attempt to forfeit FHL’s 27.5% working interests in the Badin IV South and Badin IV North Blocks (collectively, the “Badin Blocks”).
The ICC Arbitral Tribunal ruled in favor of FHL and SEPL, invalidating PEL’s forfeiture attempt and affirming FHL’s 27.5% working interest in the Badin Blocks. The tribunal also awarded damages of approximately $7 million, including compounded interest at a rate of 2% per month, which will continue to accumulate until full payment is received.
Additionally, the tribunal dismissed PEL’s extensive counterclaims, totaling $483 million, citing a lack of substantiation. The ruling determined that PEL breached the Settlement Agreement, reinforcing the invalidity of its actions against FHL’s interests.
FHL and SEPL are now pursuing enforcement of the ICC award through legal channels in Pakistan to secure the awarded damages and interest.
Story by Wasim Iqbal
