AROL forfeits 10% stake in Naushehro Feroze Block, PPL to take-over

In a notice material information, Pakistan Petroleum Ltd. (PPL) has informed the exchange regarding a settlement with Asia Resources Ltd. (AROL).The Board of Directors in January, 2017 approved proposed settlements with Asia Resources Oil Ltd., the terms of which provided for withdrawal of a Civil Suit No. 530/2016 filed by AROL in Sindh High Court and payment by AROL o the company  and all outstanding cash calls along with late payment surcharge with respect of Gambat South, Naushehro Feroze and Kotri North Blocks.

The agreement was executed on 17^th March, 2017 between the two companies (AROL and PPL). Furthermore, a tripartite agreement was carried out between PPL, AROL and Government Holdings (Pvt) (GHPL).

In pursuance of the agreement between the three parties, a sum of 54,800,000 USD were paid by AROL to company (PPL) for the Gambat South and Kotri North BLock. However, the AROL did not pay its liabilities owed to the company with respect to its Naushehro Feroze obligations.

Therefore, in accordance to the terms of agreement with respect to Nasuhehro Ferzone Block, AROL’s 10% working interest in the Naushehro Feroze block would stand irrevocably forfeited in favor of Pakistan Petroleum ltd.