A Pakistan based oil marketing company that refused to put up a letter of credit (L/C) for an oil shipment has agreed to an out of court settlement with its Dubai based supplier.

Hascol Petroleum Limited will pay US$9.5 million to Mena Energy DMCC in settlement of litigation in London.

Claims and counterclaims

According to Hascol, Mena Energy failed to supply the agreed quality of oil and that its delivery was delayed. In response, the oil marketing company refused to provide an L/C for the shipment.

Both firms made material injury claims and counterclaims on each other.

Equal instalments

Hascol must pay the settlement in four equal instalments of US$2.37 million each over an eighteen-month period.

The settlement brings an end to a three-year dispute between the two companies.

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