By John Lee.
Sharjah-based Dana Gas and its consortium partners, Crescent Petroleum and Pearl Petroleum, is pursuing $100 million (117 billion Iraqi dinars) in payments from the Kurdistan Regional Government (KRG).
In a statement to the Abu Dhabi Securities Exchange (ADX), the company said:
"The LCIA [London Court of International Arbitration] Tribunal recently ordered the KRG to pay the Consortium US$100 million within a timeframe of 30 days by way of a second interim order.
"In default of its legal obligations, the KRG failed to make payment by the stipulated deadline of 17th November 2014 and as a
consequence, the Tribunal's order became peremptory in nature, enabling its enforcement by the English Court.
"With the Tribunal’s permission, on 12th December 2014, an application to the English Court has been made for enforcement of the order, with the prospect of sanctions being imposed on the KRG for non-compliance."
But the company said that despite this, and a further multi-billion-dollar claim for breach of contract, which is due to be heard in April of next year, it remains committed to working in the Kurdistan and Iraq, adding:
"[We] sincerely hope that all outstanding contractual matters with the KRG be resolved, amicably and in good faith in the shortest possible time, within the contractual framework”.
“This will in turn enable the full and proper development of the Khor Mor and Chemchemal fields as envisaged by the Contract, for the benefit of the people of the Kurdistan region and all of Iraq.”
(Source: Dana Gas)
(Picture: Dana Gas operations in Iraqi Kurdistan)