Online

See all articles

Dana wins $121m Kurdistan pay dispute

UAE-based player seeks missing gas payments from local government

A London court has ordered the Kurdistan Regional Government (KRG) to pay United Arab Emirates-based Dana Gas $121 million in missing payments for past exports.  

The ruling comes after a Dana Gas-led consortium sued the KRG after it failed to make payments for past production.

Following the judgement, KRG will have to pay the claimants for condensate and liquefied petroleum gas lifted by or on behalf of the KRG between 30 June, 2015 and 31 March, 2016.

The court also dismissed counterclaims by the KRG against Dana Gas, the company said, "finding that there was no unreasonable delay in their execution of the project".

Dana Gas leads the Pearl Petroleum consortium, which includes Austria’s OMV, Hungary’s MOL and Dana's sister company Crescent Petroleum.

The KRG has previously been ordered to pay Pearl $1.98 billion in outstanding unpaid invoices, following a 2015-trial won by the consortium over contractual right. 

The Kurdistan regional government is still lagging on payment of monthly production entitlements to producers in the area, including London-listed Gulf Keystone Petroleum and Oslo-listed DNO, and owes hundreds of millions of US dollars in outstanding dues for historic exports.

However, the companies have recently been receiving delayed payments.