Petroleum Exploration (Pvt.) Ltd

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ICC Arbitration Award

Petroleum Exploration (Pvt) Limited (PEL) has recently won a significant legal victory in an ICC arbitration dispute, which has major implications for the exploration and production (E&P) sector in Pakistan.

This victory showcases PEL's commitment to the Government of Pakistan and its compliance with the laws governing Petroleum Concession Agreements (PCAs) and Joint Operating Agreements (JOAs).

As a leading private sector oil and gas exploration and production company in Pakistan, PEL had entered into PCAs with the Government and JOAs with the claimant for oil and gas activities in the country.

The claimant had initiated ICC arbitral proceedings against PEL, alleging a breach of the PCA/JOA. PEL contested the claimant's assertion that the International Chamber of Commerce (“ICC”) had jurisdiction over the JOA dispute, arguing that any such dispute falls under the laws of Pakistan.

PEL is pleased to announce that the three-member arbitral tribunal ruled in favour of PEL, upholding PEL’s argument that any dispute arising from the JOA is subject to the law of Pakistan.

This landmark award reaffirms the sovereignty of the Pakistani courts and sets a precedent for similar disputes to be governed by Pakistani laws, reinforcing the sanctity of the Government-authored PCA/JOA and establishing clear jurisdictional boundaries regarding the arbitration agreement.

This achievement underscores PEL’s unwavering dedication to the E&P sector and its adherence to the legal and regulatory framework governing the industry