In an international arbitration case between the Kurdistan Regional Government (KRG) in Iraq, and a consortium led by UAE-based Dana Gas, a London court has ruled the KRG to pay $1.98b in damages to the consortium, Reuters reported.
The Dana-led venture had recorded financial losses claiming it had been underpaid for condensate and liquefied petroleum gas products supplied from the Khor Mor gas fields.
In 2007, Kurdistan awarded Dana and the UAE’s Crescent Petroleum a 25-year contract to develop the Khor Mor and Chemchamal gas fields. Subsequently, Austria’s OMV and Hungary’s MOL each took 10 % of the venture.
The consortium has so far invested over $1.2b in the project and produced over 150 million barrels of gas and petroleum liquids.
The judgment is final, binding and internationally enforceable, Dana said in a statement.
“After almost seven years of delay caused by this unnecessary dispute, we hope that with respect for the contract, we will now finally be able to move forward and prevent further losses for all sides by developing these world class resources as originally envisaged for the benefit of Kurdistan and all of Iraq, as well as the wider region,” Managing Director of Dana’s Board, Majid Jafar, told Reuters.
Dana has raised additional damage claims for delayed development of the gas fields and is likely to pursue another legal dispute with the KRG in 2016.