By John Lee.
Ukrzemresurs LLC, a Ukrainian gas producer and operator of the Akkas gas field in Iraq since 24 April 2024, has announced that it has filed a claim with the International Court of Arbitration of the International Chamber of Commerce (ICC) to protect its rights as operator and investor under the Gas Development and Production Service Contract for the Akkas contract area with, among others, the Midland Oil Company.
The company stated that it has consistently fulfilled its contractual obligations and made significant investments in the project since the agreement was established. However, Ukrzemresurs said it had "no choice but to commence arbitral proceedings" following alleged breaches by its counterparties, including what it described as the wrongful termination of the contractual arrangements.
According to the statement, the situation escalated with the seizure of Ukrzemresurs' field camp and property "by armed force without prior notification and legal grounds," which the company considers a serious violation of its rights and investments in Iraq.
Full statement from Ukrzemresurs:
Ukrzemresurs LLC, an Ukrainian gas producer and operator of the Akkas gas field in Iraq since 24 April 2024, announces that it has filed a claim with the International Court of Arbitration of the International Chamber of Commerce (ICC) to protect its rights as operator and investor under the Gas Development and Production Service Contract for the Akkas contract area with, among others, the Midland Oil Company.
Ukrzemresurs has worked consistently and diligently since the aforementioned agreement was put in place, including making a number of significant investments into the project.
Unfortunately, however, it now has had no choice but to commence arbitral proceeding following breaches of the agreements by its counterparties, including, notably a wrongful alleged termination of the contractual arrangements, and an absence of desire on the part of the counterparties to resolve the dispute culminating recently in the seizure of Ukrzemresurs' field camp and property by armed force without prior notification and legal grounds. Such actions amount to a serious violation of Ukrzemresurs' rights in relation to its significant investments in Iraq.
Ukrzemresurs regrets this development, which hinders the implementation of a strategically important project for Iraq. although as always it remains available for constructive and good faith discussions with the aim of resolving the dispute amicably.
(Source: Ukrzemresurs)
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