A business of Pioneer Natural Resources has been compelled to pay its three partners in Equatorial Guinea millions of dollars, assign them production-sharing interests and make a rig available to them in resolution of an old dispute over where, when and how to drill a well.

The settlement re-assigns equity stakes in Block H offshore the West African country, where Pioneer in 2004 acquired interests in a production-sharing contract and joint venture from Roc Oil, Atlas and PA Resources.

It is understood arbitration to end the clouded dispute finished with Pioneer’s Osborne Resources Ltd. having to pay $5.5 million to each of the partners and assignment of its 50 percent in the production-sharing contract.

Block H partners will also have the Aban Abraham rig made available to them by the end of 2009.

Swedish partner PA Resources said the settlement makes it possible to drill the Aleta-1 prospect it says has “major reserve potential”.

Tags: P.A. Resources, Pioneer Natural Resources Company, ROC Oil