Shell, Chevron and the Philippine National Oil Company Exploration Corporation (PNOC-EC) have settled a long-running tax dispute in the Philippines linked to a major offshore natural gas project.

The disagreement stemmed from tax obligations under a service contract signed when the three companies were partners in the country’s largest offshore gas development.

The settlement ends years of legal and financial uncertainty for the former partners and brings the dispute to a close.

The offshore gas project has been a key source of fuel for electricity generation in the Philippines, making it one of the country’s most important energy assets. The companies have since changed ownership interests in the project, but the tax dispute had remained unresolved until now.

Although the terms of the settlement were not made public, the resolution closes a significant chapter in the Philippines’ energy sector and removes a longstanding issue involving the former partners.