Mexican state oil company Pemex PEMX.UL reached a $295 million settlement with a group including German industrial conglomerate Siemens (SIEGn.DE) in a longstanding dispute over a refinery project, a person familiar with the matter said on Monday.
The deal was originally announced in March but did not give details of the final settlement.
A Mexican official close to the negotiations said that Pemex had agreed to settle for $295 million. Earlier in the day, Pemex said in a statement that the deal struck definitively ends the 14-year-long dispute, but it did not give a sum.
The official said Siemens originally sued for $690 million.
A Pemex spokesman declined to name the amount.
A Siemens spokesman declined to confirm the value of the settlement, which he described as a private matter.
The dispute involved Conproca, a Mexican joint venture between Siemens and South Korea’s SK Engineering & Construction Co Ltd, which was created to bid for the reconfiguration of its Cadereyta refinery in the northern state of Nuevo Leon.
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Pemex was at loggerheads with Siemens and SK Engineering & Construction Co Ltd – a unit of SK Holdings Co – over allegations of graft and cost overruns relating to the Cadereyta project.
The settlement will fund anti-corruption, environmental and social development projects in Mexico, the companies said.
(Reporting by David Alire Garcia; Editing by Alan Crosby)