The Governor General of Papua New Guinea, Sir Bob Dadae, today executed on behalf of the State a deed of settlement between Puma Energy Ltd and PNG Customs.
The deed of settlement is over unpaid goods and services tax for an amount of K40 million.
Attempts to settle the dispute through arbitration proceeding registered by Puma Energy with the International Centre for Settlement of Investment Dispute based in New York were unsuccessful.
Costs associated with an international arbitration was also a factor in the parties now deciding to settle the matter on terms that both parties can agree on.
Under the terms of the Deed, Puma Energy will pay the State K40 million. The State through PNG Customs Service on the other hand, will not pursue its claim against Puma Energy Ltd as per the Dispute between the two parties.
Parties to the signing ceremony were Commissioner General of Internal Revenue Commission Ms. Betty Palaso, Chief Commissioner of PNG Customs Service Ray Paul and Jim Collins and H. S. Tokome of Puma Energy Ltd.
