Clough in $35m G1 settlement deal

Clough's long-running battle over the G1 project in India has drawn to a close with the Perth-based engineering company receiving a $US32 million ($A35 million) payment.

In a statement today, Clough said it had executed a formal settlement agreement includes transferring its rights, title and interest in all project materials, equipment and services to India's Oil and Natural Gas Company (ONGC), for a settlement sum of $US32 million.

Clough said the settlement will not have a material impact on half year or full year earnings.

In 2004, Clough was awarded a $US215 million contract by ONGC for the development of a deepwater oil and gas field lease in the Bay of Bengal.

However in 2007, ONGC terminated the contract and Clough then stated it was owed $US80 million, which would be substantially reduced should it transfer ownership of equipment to ONGC.

Since then, both companies have been locked in a legal battle involving involed Clough submitting a claim and ONGC lodging a counterclaim worth $US1.2 billion.

Shares in Clough closed up half-a-cent to 98c today.