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Sun 8 Aug 2010 12:08 PM

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Crescent Petroleum denies Iran gas deal has been cancelled

Company says in emailed statement that neither side has cancelled the contract.

Crescent Petroleum denies Iran gas deal has been cancelled
GAS DEAL: Crescent Petroleum said the contract with Iran has not been cancelled. (Getty Images)

The UAE's based Crescent Petroleum, largest shareholder in Dana Gas, said Iran did not cancel a 25-year gas supply contract it had signed with the National Iranian Oil Co (NIOC).

Last week, Iranian media reported that the contract had been cancelled, quoting an official from NIOC.

"The Iranian official's statement appears to have been mis-interpreted," said a Crescent Petroleum spokesman.

"The 25-year contract between NIOC and Crescent is valid, internationally binding and currently in international arbitration, as is known, and neither side has cancelled it," he added.

Dana shares fell as much as 6.3 percent on the Abu Dhabi bourse amid reports of Iran canceling the contract, traders said. Crescent has a 20.4 percent stake in Dana Gas, Reuters data showed.

"Investors are showing concern on what this could mean for Dana Gas," said Mohamed Khaled, risk manager at Prime Emirates.

NIOC and Sharjah-headquartered Crescent signed the 25-year gas contract in 2001, with a price linked to oil. But as oil rallied some Iranian officials called for a revision to the price formula and blamed the price dispute for delivery delays.

Delivery of gas from Iran was due to start in mid-2006. In April, Iran's oil minister Massoud Mirkazemi said that the Islamic Republic was ready to supply gas to the emirate of Sharjah, but would not hold talks with Crescent. (Reuters)

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