OREANDA-NEWS. Dana Gas PJSC wishes to further update the market with regard to the international arbitration case it filed in October 2013, along with Crescent Petroleum and Pearl Petroleum Company Limited (together the ‘Consortium’), before the London Court of International Arbitration (‘LCIA’) in relation to their long-term contract with the Kurdistan Regional Government of Iraq (‘KRG’).

Following the hearing that took place in London before the LCIA Tribunal on 21st September 2015, the Tribunal on the 27th of November 2015 issued a Second Partial Final Award (‘Second Award’) ordering that the KRG pay to the companies within 28 days the sum of US$ 1,981,951,322 (US Dollar One Billion, Nine Hundred Eighty One Million, Nine Hundred Fifty One Thousand, Three Hundred and Twenty Two only) for outstanding unpaid invoices for the produced condensate and LPG up to 30th June 2015, as per the pricing methodology already determined previously by the Tribunal. This Award is final, binding and internationally enforceable, and does not depend upon any further hearings or claims and counter-claims by the parties to the arbitration.

This Award follows the Partial Final Award made by the Tribunal on 2nd July 2015, which confirmed the Consortium’s exclusive long-term rights to develop and produce gas and petroleum from both the Khor Mor and Chemchemal fields for not less than 25 years. (These rights had previously been disputed by the KRG since May 2009, preventing the proper and timely development of the fields). The Consortium’s further substantial damage claims for wrongfully delayed development of the fields will be heard in 2016, along with the remaining counter-claims of the KRG (though the Tribunal found that these provided no basis for postponing this Second Award for payment of the full amount due within 28 days).

Dana Gas and its Consortium partners have invested over $1.2 billion so far and produced over 150 million barrels equivalent of gas and petroleum liquids, which has had a transformative positive effect on the local economy in the Kurdistan Region and in particular in providing gas to fuel affordable electricity supply. The companies sincerely hope that contractual commitments, as confirmed beyond any doubt by the Tribunal’s findings and clear Award, will now be adhered to so that these world class hydrocarbon resources can be further properly developed for the benefit of the people of the Kurdistan Region and all of Iraq.