The joint venture partners in dispute over the drilling of a second offshore exploration well in Peru's Block Z-38 have reached a settlement.

The co-venturers are Karoon Energy and Pitkin Petroleum.

In May this year, Karoon received a notice of dispute from Pitkin under a joint operating agreement that alleged Karoon was in breach of its obligations by not entering the fourth exploration phase of the Z‐38 licence contract and not drilling a second exploration well.