International Petroleum Investment Company (IPIC) and Malaysia have reached a settlement after a year-long arbitration process involving billions.

According to filings to the London Stock Exchange, IPIC said that it will receive US$1.2 billion in two equal payments on July 31 and Dec 31.

The agreement is conditional on the Arbitration Tribunal in London making a "consent award" by May 31.

The filing indicates that the settlement involved only part of the total US$6.5 billion sought by IPIC, the remainder of which is believed to be subject to further negotiations.

"The parties have also agreed to enter into good faith discussions in relation to payments made by 1MDB Group to certain entities," read the filing.

Although it is not mentioned what the "certain entities" are, it is likely that this referred to US$3.5 billion payments made by 1MDB to Aabar Investments PJS Ltd, incorporated in the British Virgin Islands (Aabar BVI).

IPIC had claimed that its subsidiary Aabar Investments PJS, headquartered in Abu Dhabi, had no relations to Aabar BVI...