PPL settles multi-year EPCC disputes with PDIL, DEL

February 26, 2026 (MLN): Pakistan Petroleum Limited (PPL) has successfully reached an amicable settlement with Presson Descon International (Private) Limited (PDIL) and Descon Engineering Limited (DEL). 

The settlement resolves disputes arising from two major Engineering, Procurement, Construction, and Commissioning (EPCC) projects.

The projects in question are the Gambat South Gas Processing Facility-II (GPF-II) and the Adhi LPG & NGL Recovery Plant-III (Adhi-III).

The disputes primarily revolved around liquidated damages imposed by PPL, withheld retention money, claims for extensions of time, and cost adjustments submitted by PDIL and DEL under the respective contracts.

Legal proceedings had been initiated in the Sindh High Court and Civil Court Karachi, with matters subsequently referred to arbitration as per contractual agreements.

While court and arbitration proceedings were ongoing, the parties engaged in year-long negotiations aimed at achieving a mutually acceptable resolution.

These discussions have now culminated in a settlement that resolves all outstanding matters “as of today,” with pending court cases to be formally withdrawn.

Under the agreement, both the GPF-II and Adhi-III contracts are considered fully concluded. No further or future liabilities or claims will arise from these projects, effectively bringing closure to disputes that had persisted for several years.

The settlement not only avoids prolonged arbitration but also reinforces the company’s commitment to maintaining constructive business and commercial relationships with its contractors.

Industry observers highlighted that such settlements are significant in Pakistan’s energy sector, where lengthy disputes over project execution and contract claims can often stall operations and affect cash flows.

By resolving these matters amicably, PPL has mitigated operational risks and strengthened its position in ongoing and future EPCC engagements.

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