Dana Gas has initiated a legal case in a UK court against the Kurdistan Region of Iraq over non-payments and production rights of gas
The Abu Dhabi-listed oil and gas producer has filed an arbitration case in London to clarify the amount of money it claimed it was owed for work carried out in the area and on its rights to develop and market gas fields, the company announced.
The case was filed at the London Court of International Arbitration under the terms of Dana Gas’ 2007 agreement with Kurdistan Region of Iraq, the company said.
Dana Gas said it was resorting to arbitration after an effort to resolve its differences with the Ministry of Natural Resources through impartial mediation failed.
Dana Gas-owned Pearl Petroleum, UAE’s Crescent Petroleum, Austria’s OMV and Hungarian oil and gas group MOL want to clarify contractual rights with the regional government over developing and marketing gas from the Khor Mor and Chemchemal gas fields. The Pearl consortium has invested more than US$1bn and produced approximately 100mn barrels of oil equivalent of gas and petroleum liquids in region, Reuters reported.
Dana Gas, which holds 40 per cent of the Pearl consortium, has previously said that it alone is owed about US$430mn by the regional government.
