Shares of Dana Gas jumped about 5% in trade after the British high court upheld an earlier order requiring $100m in payment from the Kurdistan Regional Government (KRG) to Dana’s consortium, reported Gulf News.
The English High Court upheld on Friday, November 20 a previous ruling by the London Court of International Arbitration (LCIA) ordering the KRG to pay what it owed to the consortium for developing hydrocarbons in its area of jurisdiction in northern Iraq.
In the older ruling on October 17, 2014, the KRG had been ordered to pay the above sum of money within 30 days. The payment will now have to be made in 14 days.
Dana Gas shares traded 4.88% higher at Dh0.48 in a steady market.
According to Reuters the original arbitration case had been filed in London in October 2013. The case was taken to the High Court of England after the KRG failed to make the payment.
For their part the Kurdistan region’s Ministry of Natural Resources said the court order did not relate to the “substantive merits” of the arbitration with Dana Gas, adding that Dana Gas and its affiliates had failed to honour their obligations.
The ministry also said: “Regrettably, rather than working constructively with the KRG to find a way forward in the light of the prevailing circumstances as other international oil companies have done, Dana maintained its aggressive stance and pursued its application to the court.”
“The KRG will continue vigorously to pursue its claims for damages and other relief against the claimants in all appropriate fora.”
The Dana consortium also consists of the UAE’s Crescent Petroleum, Austria’s OMV OMV.VI and Hungarian oil and gas group MOL MOLB.BU.