By John Lee.
In a statement to the Abu Dhabi Stock Exchange, Dana Gas has announced that Pearl Petroleum has commenced arbitration proceedings against Canadian company Enerflex, the EPC contractor of the KM 250 project.
The arbitration relates to the termination of Enerflex's contract for the Khor Mor Gas Expansion Project, due to alleged performance issues and project delays.
Pearl Petroleum, developer of the Khor Mor field in the Kurdistan Region of Iraq, is a five-company consortium comprised of Dana Gas, Crescent Petroleum, OMV, MOL and RWE,
Full text of statement from Dana Gas:
Further to Dana Gas's ADX disclosure on the 20th of August 2024, the Company informs the market that Pearl Petroleum Co. Ltd ("Pearl Petroleum") has commenced arbitration proceedings against Enerflex, the EPC contractor of the KM 250 project.
On 19 August 2024, Pearl Petroleum issued a notice of termination to Enerflex, following numerous performance issues which have arisen during the execution of the contract works.
That termination took effect on 9 September, and Pearl Petroleum has initiated arbitration action in accordance with the contract to recover costs and damages arising from Enerflex's defective performance.
Pearl Petroleum is committed to ensuring the successful completion of the project and to safeguarding the interests of its stakeholders and the people of the KRI. Dana Gas will update the market on the new expected completion date in due course as it works with its Pearl Petroleum partners to bring the project back on track.
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(Source: Dana Gas)
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