Dubai: Dana Gas has been awarded a settlement of $121 million (Dh444.1 million) by the London Court of International Arbitration in a case against the Kurdistan Regional Government (KRG) of Iraq, the energy company said in a statement on Tuesday.
A consortium including the Sharjah-based oil and gas company have been locked in arbitration with the KRG since October 2013 over the development of gas fields in the region.
According to the bourse statement, the payment was awarded for liquefied petroleum gas and condensate extracted on behalf of Iraqi Kurdistan between June 30, 2015 and March 31, 2016.
The latest ruling follows a July 2015 court decision asserting Dana’s long-term contractual rights, lasting at least 25 years, to develop and produce gas and petroleum from the Khor Mor and Chemchamal fields.
A subsequent judgment in November 2015 awarded Dana Gas, along with the UAE companies Pearl Petroleum Co and Crescent Petroleum, $1.96 billion for outstanding unpaid invoices.
The tribunal also found that “that there was no unreasonable delay in their execution of the project,” referring to a KRG counterclaim against the consortium.
In a hearing scheduled for third quarter 2017, the court of arbitration will set the damages to be awarded for a delayed development claim filed by the consortium.
Over $1.2 billion has been invested by Dana Gas and its partners in Kurdistan so far, resulting in the production of approximately 150 million barrels equivalent of gas and petroleum liquids, the statement said.
