Dana Gas, one of the largest investors in Iraq's Kurdistan region, said on Tuesday London's Court of International Arbitration had ruled in its favour against the Kurdistan Regional Government (KRG).
A consortium including Dana has been seeking to confirm its contract rights and obtain payment for gas production at the London Court of International Arbitration.
The court ordered the KRG to pay $121 million to the claimants for condensate and liquefied petroleum gas lifted by or on behalf of the KRG between June 30, 2015 and March 31, 2016, Dana said in a statement.
The court also dismissed counterclaims by the KRG against the claimants, the statement said, "finding that there was no unreasonable delay in their execution of the project".
The KRG said it would "continue vigorously to defend its position" in the next phase of the arbitration, adding that the latest ruling was "partial".
"Rather than embarking on costly and protracted legal action ... the Claimants should ... cooperate with the KRG to develop the resources of the Kurdistan," the region's Ministry of Natural Resources said in a statement, mentioning the Kurds' participation in the war on the Islamic State group.
The ruling follows a July 2015 award confirming the claimants' long-term contractual rights and a November 2015 judgement awarding them $1.96 billion for outstanding unpaid invoices, Dana said.
It added the tribunal would quantify damages due to the claimants at a hearing expected to take place in the third quarter of this year. There was no immediate comment from the KRG.