Houston-based engineering and construction services firm KBR announced on Monday it has settled for almost half a billion dollars a longstanding dispute with Mexico’s state oil firm Pemex over two offshore platforms.
KBR says it will be paid $435m under the settlement, which ends all litigation in the matter.
The dispute focused on a deal whereby KBR subsidiary Commisa built for Pemex Exploracion y Produccion (PEP) two offshore natural gas treatment processing and reinjection platforms.
PEP, claiming Commisa had failed to meet certain terms of the contract, rescinded the deal in 2004, confiscated the platforms and put them into use.
In 2009 the International Chamber of Commerce (ICC) made an arbitration award in Commisa’s favour.
The case had been percolating through courts in the US and Mexico before Monday’s resolution.