The UK's High Court has ordered the Kurdistan Regional Government (KRG) to pay a consortium led by Dana Gas $100 million within 14 days.
In a statement, the KRG's Ministry of Natural Resources said:
“The Court’s decision does not relate to the substantive merits of the claims and counterclaims in the on-going arbitration between the KRG and Dana Gas PJSC, Crescent Petroleum Company International Limited and Pearl Petroleum Company Limited (collectively, “the Claimants”).
“The order relates to an interim payment of $100 million decided by the Tribunal last year on a provisional and reversible basis, because of the purportedly precarious financial condition of Dana.”
BasNews reports that the consortium, which consists of the UAE's Crescent Petroleum, Austria's OMV and Hungary's MOL alongside Dana Gas, first sought payment for production in October 2013, and the subsequent disputes are a result of non-payment.
The KRG statement accuses the consortium of failing to try to reach an agreement: “
"The KRG feels that this further escalation was unnecessary and could have been avoided. Dana was fully aware of KRG’s financial difficulties and its need to maintain its effective fight against ISIS terrorism and support for the more than 1.8 million refugees and internally displaced persons in the Kurdistan Region.
"Regrettably, rather than working constructively with the KRG to find a way forward in the light of the prevailing circumstances as other International Oil Companies have done, Dana maintained its aggressive stance and pursued its application to the Court.”
(Source: Dana Gas, KRG, BasNews)
(Picture: Dana Gas facility in Iraqi Kurdistan)