Dana Gas issues update on Kurdistan Regional Government of Iraq (‘KRG’) arbitration
Further to its previous disclosure statements dated 22nd October 2013 and 2nd February 2014, Dana Gas wishes to update the market with regard to the
international arbitration case it filed along with Crescent Petroleum and Pearl Petroleum Company Limited (‘the Consortium’) in relation to their long-term contract with the Kurdistan Regional Government of Iraq (‘KRG’). The companies have been successful in their application to the Tribunal for interim measures, and The Tribunal has made an order dated 10th July 2014 for the KRG to restore the previous regular payments to the companies as of 21st March 2014, the date of the application, and until the case is concluded.
The arbitration case was filed by the Consortium in London at the London Court of International Arbitration (“LCIA”) in October 2013 in order to obtain confirmation of the Consortium’s long-term contractual rights in its Contract with the KRG; including payment of outstanding receivables owed to it by the KRG for products delivered under the contract. In addition to the Tribunal’s Order for payments to resume, the Tribunal has also confirmed its jurisdiction to decide the case.
Dana Gas and its Consortium partners reiterate their continued commitment to the KRG and to the people of the Kurdistan Region and all of Iraq, and hope that any outstanding matters with the MNR will be resolved, amicably and in good faith, in the shortest possible time. This will enable the full and proper development of the Khor Mor and Chemchemal fields, as envisaged in the Contract, for the benefit of the people of the Kurdistan Region and all of Iraq. In the meantime the companies continue to produce an average of over 80,000 barrels of oil equivalent (boe) per day, including over 300 million cubic feet per day of gas that enable affordable electrical power generation in the Kurdistan Region.
Dana Gas and its Consortium partners are proud to be the largest oil and gas sector investors and cumulative producers in the Kurdistan Region of Iraq. To date, they have invested over US$ 1.1 billion in the Kurdistan Region and produced approximately 120 million boe of natural gas and petroleum liquids, thereby facilitating affordable electricity generation and an economic and social transformation for the Kurdistan Region under the progressive policies of the KRG.