Murat Temizer
30 November 2015•Update: 01 December 2015
ANKARA
The Kurdistan Regional Government (KRG) on Sunday denied claims by Dana Gas, a gas company from the United Arab Emirates, which won an arbitration award from a London court.
Dana Gas won the arbitration, but its claim that the KRG would have to pay $1.98 billion of outstanding invoices within 28 days was denied by the regional government. The invoices were for condensates and liquefied petroleum gas supplied.
Dana Gas had issued a statement on Sunday qualifiying the decision as final and binding.
But the KRG said this was a partial award that doesn't finally determine all issues in the arbitration and leaves many issues unresolved.
Furthermore the KRG Natural Resources Minister said in a written statement on Sunday that the arbitration is subject to duties of confidentiality under applicable law and arbitration rules.
"Without waiving these duties of confidentiality, the KRG is obliged to correct inaccurate public statements made by Dana, which create an impression that is materially misleading and incomplete," Ministry said.
"The KRG will continue forcefully to pursue its claims for damages and other relief against Dana, its affiliates and principals as a result of these failures in all appropriate fora."
KRG contracted with Dana Gas and its parent company Crescent Petroleum in April 2007 for 25-year rights to develop two gas fields, Khor Mor and Chemchemal in the KRG.
The first stage of the Khor Mor was completed in 15 months and the first gas deliveries to Erbil commenced in October 2008. The natural gas was pumped via a 176 kilometers pipeline to Erbil and Suleymania.
The second stage involved installation of a liquefied petroleum gas (LPG) plant, which was completed in January 2011. The total investment for Khor Mor's development was more than $900 million.
The two companies were appointed to develop, process and transport natural gas from the Khor Mor Gas field and also to explore the potential of Chemchemal field, in order to provide natural gas supplies to fuel domestic electric power generation plants in Erbil and Chemchemal.
Crescent Petroleum and Dana Gas signed an agreement with Austria's OMV and Hungary's MOL for the joint development of the two gas fields in May 2009. OMV and MOL acquired a 10 percent interest in Pearl Petroleum Company, the company that holds Crescent Petroleum and Dana Gas’ interests in the KRG.
