Arbitration proceedings on Kurdish contract started by Dana Gas

24 Oct 2013

Dana Gas PJSC (DANA), a United Arab Emirates fuel producer, began arbitration proceedings in London on rights and money owed from an oil development contract it signed with the Kurdistan regional government of Iraq in 2007.

The proceedings at the London Court of International Arbitration relate to outstanding receivables owed by the Kurdish government, in a statement, Dana Gas said. Along with its majority shareholder Crescent Petroleum Co. and subsidiary Pearl Petroleum Co., the company has filed the case to clarify the group’s development and marketing rights of the Khor Mor and Chemchemal fields in Kurdistan, according to the statement.
Dana Gas, based in the U.A.E. sheikhdom of Sharjah, restructured a $1 billion Islamic bond last year after the Egyptian and Iraqi governments delayed payments for fuel sales. The company said in August it resumed production of liquefied petroleum gas in Kurdistan after an explosion there halted output last year.
Dana Gas started arbitration after the Kurdish Ministry of Natural Resources declined to engage in formal mediation, it said in today’s statement. Shares of the company fell 1.5 percent to 66 fils as of 11:48 a.m. in Abu Dhabi, paring gains in 2013 to 47 percent.

Second-quarter profit at Dana Gas declined 45 percent to 100 million dirhams ($27 million) as revenue fell. Iraq provided 50 percent of the company’s sales in the first half, according to the results. Dana Gas has a 40 percent share of gross production in Iraq, equivalent to 27,000 barrels of oil per day in the quarter.
The company was owed 1.47 billion dirhams from the Kurdish government at the end of June.


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Oil companies file case against Kurds in Iraq
Oct. 22, 2013  |  6:47 AM  


SHARJAH, United Arab Emirates, Oct. 22 (UPI) -- The largest investors in the Kurdish north of Iraq said Tuesday they started arbitration against the regional government to assess long-term oil contracts.

Emirati energy company Dana Gas, along with its partners at Crescent Petroleum and Pearl Petroleum, said Tuesday they started arbitration proceedings at an international arbitration court in London against the Kurdistan Regional Government.

"The objective of the arbitration ... is to obtain clarification of the consortium's long-term contractual rights for the development and marketing in respect of the Khor Mor and Chemchemal fields, including the outstanding receivables owed by the Ministry of Natural Resources in the Kurdistan Region of Iraq," Dana said in a joint statement.

There was no public statement Tuesday from the KRG.

The consortium said it made its decision following "concerted and sincere efforts" to resolve payment issues amicably with the Kurdish government. Contracts were signed with the Kurdish government in 2007.

The consortium said it has invested more than $1 billion in the Kurdish region and produced approximately 100 million barrels of oil equivalent since production began in 2008.

The semiautonomous Kurdish government is at odds with the federal government over who controls what aspects of the energy sector. Oil from the Kurdish north typically flows north to Turkish export terminals.

Read more: http://www.upi.com/Business_News/Energy-Resources/2013/10/22/Oil-companies-file-case-against-Kurds-in-Iraq/UPI-51841382438846/#ixzz2ig4SHSZ0