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Tue 8 Dec 2015 01:54 PM

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UAE's Dana Gas lays claim to part of $11bn owed by Kurdistan gov't

Claims by Dana, Crescent Petroleum and Pearl Petroleum will be heard at arbitration hearing planned for next year

UAE's Dana Gas lays claim to part of $11bn owed by Kurdistan gov't
Dana Gas

Dana Gas said it and two other companies still had claims against the Kurdistan Regional Government (KRG) estimated at more than $11 billion, mainly for what they argue to have been wrongful interference in their rights over two fields in the Iraqi semi-autonomous region.

The claims by the group made up of Crescent Petroleum and Pearl Petroleum as well as Dana would be heard at an arbitration hearing planned for next year, Dana said in a bourse statement on Tuesday, adding the fields involved were Khor Mor and Chemchemal.

The KRG's counter-claim for more than $3 billion would also be heard at the arbitration session, Dana added.

Nobody was immediately available to comment from the KRG.

In 2007, Kurdistan awarded Dana and the UAE's Crescent Petroleum a 25-year deal to develop Khor Mor and Chemchamal. Austria's OMV and Hungary's MOL subsequently each took 10 percent of the venture.

But the project became beset by disagreements over legal rights to the fields and allegations that the consortium had been underpaid for condensate and liquefied petroleum gas products supplied from Khor Mor.

Dana said last week the tribunal of the London Court of International Arbitration ordered the KRG to pay $1.98 billion to the consortium, directing that the payment be made within 28 days.

Dana Gas has not so far received any sums under the tribunal award or from an English High Court judgment of Nov. 20, it said in Tuesday's statement.

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