PNOC-Energy Development Corp. has agreed to accept nearly P3 billion ($71 million), less than half what it was originally asking, from state-run National Power Corp (Napocor) to end a long-running dispute over power supply contract fees.

PNOC-EDC said in a statement on Friday that it had agreed a deal with the country’s largest power producer to settle the seven-year dispute.

PNOC-EDC, which was bought by local power producer First Gen in a $1.35 billion auction last November, was originally demanding P7 billion from Napocor.

Napocor will have to pay PNOC-EDC in four tranches, with the first tranche of 500 million pesos to be settled within 30 days and the last tranche of P894 million to be paid in January 2010. The second tranche of P500 million will have to be settled in 60 days and the third tranche of P1 billion in January 2009, the geothermal firm said.

PNOC-EDC’s shares ended down 1.85 percent at 5.3 pesos on Friday in a general market 2.32 percent weaker. First Gen finished 3.66 percent in the red.