UAE’s Dana Gas says wins $121 mln in Kurdistan dispute

The London Court of International Arbitration has directed the Kurdistan Regional Government (KRG) of Iraq to pay $121 million to a consortium that includes Abu Dhabi-listed Dana Gas, the energy company said in a bourse statement on Tuesday.

The payment was awarded for condensate and liquefied petroleum gas (LPG) lifted on behalf of KRG between June 30, 2015, and March 31, 2016.

Sharjah-based Dana Gas, along with the UAE’s Crescent Petroleum and Pearl Petroleum Co., had filed an international arbitration case in October 2013 in relation to their long-term contract with KRG to develop the Khor Mor and Chemchamal gas fields in Iraqi Kurdistan.

This is the third such award in the case, the statement said. The first was in July 2015, confirming the consortium’s exclusive long-term rights to develop and produce gas and petroleum from both the fields for a minimum of 25 years.

Meanwhile, the second was a November 2015 ruling awarding the claimants $1.96 billion for outstanding unpaid invoices.

In the latest judgement, the tribunal also dismissed all of KRG’s counterclaims against the consortium, “finding that there was no unreasonable delay in their execution of the project,” the statement added.

The court will determine the damages to be awarded for a delayed development claim filed by the claimants later this year, in a hearing scheduled for Q3 2017.

Dana Gas and its consortium partners have invested over $1.2 billion in Kurdistan so far and produced over 150 million barrels equivalent of gas and petroleum liquids, it said.