Karoon Energy has announces that, further to its announcement on 26 May 2021, its wholly owned branch, KEI (Peru Z-38) Pty Ltd, Sucursal del Peru, has entered into a deed of settlement and release in respect of its dispute with Pitkin Petroleum Peru Z-38 SRL in respect of Block Z-38, offshore Peru. Under the deed of settlement and release, without any admission of liability, Karoon has agreed to pay US$9.6 million to Pitkin in full and final settlement of all claims of Pitkin and its associates in connection with Block Z-38.
On 26 May 2021, Karoon received a notice of dispute from Pitkin under the joint operating agreement in respect of Block Z-38, offshore Peru. The notice of dispute alleged (amongst other things) that KEI Peru was in breach of its obligations to enter into the fourth exploration phase of the Z-38 licence contract and to drill a second well within that licence area.
Source: Karoon Energy