By John Lee.
Genel Energy plc has announced that its subsidiary, Genel Energy Miran Bina Bawi Limited (GEMBBL), has been ordered by the London Court of International Arbitration (LCIA) to pay the Kurdistan Regional Government (KRG) a total of $26.87 million in recoverable costs.
The ruling follows a claim brought by the KRG in December 2021, with the Tribunal issuing its Final Award on Costs under the LCIA Rules and the Arbitration Act 1996. The award includes:
- $26,868,905.29 in recoverable legal and arbitration-related costs;
- Post-Award interest at a rate of one-month USD LIBOR (or SOFR) plus 2%, compounded monthly, from the date of the Final Award.
The awarded amount is less than the $36 million initially claimed by the KRG, as disclosed in Genel's January 2025 Trading Update.
(Source: Genel Energy)
The outcome of this arbitration could set a precedent for future disputes between oil companies and regional governments. Curious to see how this affects Genel’s long-term strategy in Kurdistan, especially given the financial and reputational stakes involved.