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Sun 5 Jul 2015 02:16 PM

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UAE's Dana Gas says wins favourable ruling in $1.9bn Kurdistan dispute

Abu Dhabi-listed firm filed an arbitration case in London in Oct 2013 to obtain payments for products it had delivered

UAE's Dana Gas says wins favourable ruling in $1.9bn Kurdistan dispute
Dana Gas

Dana Gas, one of the largest oil and gas investors in Iraq's semi-autonomous Kurdish region, said on Sunday that it had obtained a favourable ruling from a London arbitration tribunal in its dispute with Kurdistan authorities.

The Abu Dhabi-listed firm, which leads a consortium of investors, had filed an arbitration case in London in October 2013 against the Kurdistan Regional Government (KRG), seeking to confirm its contract rights and to obtain payments for products which it had delivered.

On July 2, the London Court of International Arbitration "handed down its partial final award ruling confirming beyond any doubt the consortium's contractual rights", Dana said in a statement on Sunday.

The tribunal confirmed the consortium's long-term rights to develop and produce gas and petroleum products from the Khor Mor and Chemchemal fields for the duration of the contract, or not less than 25 years, Dana said. These rights had been disputed by the KRG since May 2009, preventing development of the fields, the company added.

The tribunal also confirmed the KRG's obligation to pay the consortium for condensate and liquefied petroleum gas (LPG) at international prices, and has set a September 21 date to decide on Dana's claim for outstanding payments from the KRG totaling $1.943 billion as of end-May 2015, it said.

It was not immediately possible to obtain comment from the KRG.

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