PPL terminates contract with SPEC Energy due to delays on latter’s part

May 13, 2019 (MLN): Pakistan Petroleum Limited (PPL), in a notification issued to PSX on Monday, has announced the termination of Engineering Procurement Construction and Commissioning (EPCC) Contract with SPEC Energy DMCC, for the construction of a Gas Processing Plant.

The Company had entered into a contract with SPEC on April 9, 2016, for the construction of a gas processing plant for processing 60 MMScfd gas from the company’s Shadadpur field.

The project was required to be completed by October 5, 2017. However, its completion was delayed due to the failure by SPEC to meet the milestones and fulfill contractual obligations.

“In spite of the PPL giving repeated notices and opportunities, SPEC has failed to cure the defaults committed by it. Consequently, the Company has terminated the Contract with effect from May 10, 2019” the notification said.

“While all necessary steps to complete the project on an urgent basis will be taken by the Company, the company is availing all remedies to recover damages from SPEC,” it added.

Copyright Mettis Link News

Posted on: 2019-05-13T12:53:00+05:00