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Abu Dhabi, UAEFriday 22 June 2018

Dana Gas and its partners awarded over US$14m in a dispute with Kurdistan 

A London arbitration court orders the Kurdistan Regional Government to make payments

A Dana Gas facility in Iraqi Kurdistan. Dana Gas declared in June last year its Islamic bonds that were due in October illegal under current Sharia rules, angering its bondholders. WAM
A Dana Gas facility in Iraqi Kurdistan. Dana Gas declared in June last year its Islamic bonds that were due in October illegal under current Sharia rules, angering its bondholders. WAM

Dana Gas said on Tuesday a London court has ordered the semi-autonomous Kurdistan Regional Government (KRG) pay the Sharjah-based oil and gas firm and its partners more than US$14 million in a four-year old legal dispute over payments.

The Tribunal of the London Court of International Arbitration awarded Dana Gas and its partners $14m with interest at London-interbank offered rate (libor) plus 2 per cent as well as 85 per cent of arbitration and tribunal fees up to 27 November 2015 equal to over £403,000, Dana Gas said in a statement.

Since 2013, Crescent Petroleum, the parent company of Abu Dhabi-listed Dana Gas, Pearl Petroleum, in which Dana Gas has a 35 per cent stake, and Dana have been locked in a dispute with KRG over payment arrears and the rights to a gasfield in the northern Iraqi region of Kurdistan.

Dana Gas and its partners have invested over $1.2 billion so far in Kurdistan and produced over 150 million barrels equivalent of gas and petroleum liquids.

Dana Gas said in February the London Court of International Arbitration ruled in its favour that the KRG had wrongfully prevented it from developing further the Khor Mor and Chemchemal reservoirs under an agreement struck in 2007.