The Kurdistan Regional Government (KRG) Ministry of Natural Resources (MNR) said a statement released by Dana Gas regarding a sum won in a London tribunal from the KRG is “misleading and incomplete.”
KRG’s MNR released a statement on Tuesday, February 14, saying the tribunal ruled against Dana Gas and the other claimants in multiple “important respects” which Dana Gas hasn’t referred to in its statement.
“The tribunal rejected the Claimants’ claim for over $1.7 billion in respect of so called excess gas,” the KRG’s statement said, adding that the tribunal determined that the KRG is entitled to receive all the gas produced by the company at Khor Mor without additional charge.
The MNR also added that the tribunal rejected Dana Gas’ claim, and that Crescent Petroleum had lost some $3.3 billion in respect to earn out payments they claimed they would otherwise have received.
“The tribunal entirely rejected further claims by Dana that it could recover over $24 million in damages from the KRG as a result of emergency asset sales it allegedly undertook as a result of its financial difficulties,” the MNR statement added.
According to the MNR, the tribunal issued that some declarations sought by the claimants on international petroleum industry practice are “wrong” and refused to grant further determinations sought by the claimants.
“Moreover, Pearl [Petroleum] remains obliged, under the terms of the accounting procedure in the contract with the KRG, to refund to the KRG the balance of any revenues after recovering its invested petroleum costs and a contractual remuneration fee,” it continued.
“The KRG considers that the Claimants’ approach in the arbitration is unconstructive and unnecessarily escalates the dispute,” the MNR stated.
The KRG’s Ministry of Natural Resources also said that the claimants should cooperate with the KRG to develop the resources of the Kurdistan Region as other international oil companies do.
The statement came after Dana Gas released a statement on Tuesday (February 14) saying that a court ruling in London granted a judgment in the company’s favor, requiring the KRG to pay $121 million to the investors operating in the region.
According to the Dana Gas statement, the KRG’s counterclaims against the claimants were dismissed by the court which found “there was no unreasonable delay in their execution of the project.”
The consortium – which includes oil and gas companies Crescent Petroleum, and Pearl Petroleum – filed a lawsuit in the London Court of International Arbitration (LCIA) against the KRG in October 2013.
The LCIA issued its ruling in November over a dispute regarding development rights at two oil and gas fields inside the Kurdistan Region.
Dana Gas issued a statement on November 29 last year, claiming the tribunal ordered the KRG to pay $1.98 billion to its consortium within 28 days.
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