By John Lee.
The Kurdistan Regional Government (KRG) has reacted angrily to a statement from Sharjah-based Dana Gas.
Shares in the company jumped 13.7 percent on the Abu-Dhabi stock exchange on Sunday after the company won a ruling in the London Court of International Arbitration (LCIA) in its long-running dispute with the KRG in Iraq over payment arrears of $2 billion [2.4 trillion Iraqi dinars].
The company said in a statement:
"The Tribunal’s Award confirms:
- the Consortium’s [Dana Gas, Crescent Petroleum and Pearl Petroleum] exclusive long-term rights to develop and produce gas and petroleum from both the Khor Mor and Chemchemal fields for the duration of the Contract, being not less than 25 years. (These rights had previously been disputed by the KRG since May 2009, preventing the proper and timely development of the fields);
- the KRG’s contractual obligation to pay the Consortium for the produced condensate and LPG at international prices, including the pricing methodology for each; and that
- Dana Gas and Crescent Petroleum were entitled to farm out part of their own interests to MOL and OMV, and that the KRG was not entitled to a share of the farm-out proceeds."
But in a response, the KRG's Ministry of Natural Resources said that Dana has misled investors, and that "Dana’s public statements about the partial award are inaccurate and/or incomplete in numerous material respects, " addng:
"The KRG has incurred significant damages as a result of the failure of Dana and its principals to honor their obligations, and will continue vigorously to pursue its claims for damages and other relief against both Dana and its principals in all appropriate fora."
(Sources: Dana Gas, KRG, BasNews)
(Picture: Dana Gas operation in Iraqi Kurdistan)