Karachi, February 26, 2026: Pakistan Petroleum Limited (PPL) on Thursday announced that it has reached an amicable settlement with Presson Descon International (Private) Limited (PDIL) and Descon Engineering Limited (DEL) to resolve long-standing disputes related to two major Engineering, Procurement, Construction, and Commissioning (EPCC) projects.
In a notification submitted to the Pakistan Stock Exchange (PSX), PPL said the settlement covers disputes arising from the Gambat South Gas Processing Facility-II (GPF-II) and the Adhi LPG & NGL Recovery Plant-III (Adhi-III) projects.
Background of the Disputes
The disputes primarily stemmed from liquidated damages imposed by PPL, along with claims by PDIL and DEL for withheld retention money, extension of time, and additional cost claims under the respective contracts. Legal proceedings were initiated before the Sindh High Court and Civil Court Karachi, with the matters subsequently referred to arbitration as per contractual provisions.
Despite ongoing court proceedings, all parties continued parallel negotiations aimed at achieving a mutually acceptable resolution. After nearly a year of discussions, PPL, PDIL, and DEL agreed to settle all outstanding matters on an “as of today” basis.
Key Terms of the Settlement
Under the terms of the agreement:
• All pending court and arbitration proceedings will be withdrawn by the parties.
• The GPF-II and Adhi-III contracts will be deemed fully concluded, with no further claims or liabilities.
• Both sides have waived any future claims arising from or related to the projects.
PPL said the settlement would enable the closure of prolonged disputes, help avoid extended arbitration, and strengthen constructive business relationships with its contractors. The resolution is also expected to enhance operational stability and support the company’s forward outlook.
Regulatory Compliance
The company stated that the disclosure was made in compliance with Section 96 of the Securities Act, 2015 and Clause 5.6.1 of the PSX Regulations, ensuring transparency and timely dissemination of material information to the market.
The settlement marks a significant step toward dispute resolution and reflects PPL’s focus on maintaining smooth project execution and long-term commercial partnerships.