Page 9 - MEOG Week 39 2021
P. 9
MEOG FINANCE & INVESTMENT MEOG
Dana Gas wins Iran
gas arbitration case
UAE/IRAN UAE-BASED Dana Gas this week announced described as “a much larger claim”. The final
that it had been awarded $607.5mn in damages hearing is to be held in Paris in October 2022,
by an international arbitration tribunal relating with a final announcement on the award of dam-
to a dispute with the National Iranian Oil Co. ages anticipated in 2023.
(NIOC). Dana said that it would provide further
A 25-year gas sales and purchase contract updates on the collection of the awarded sum in
(GSPC) was signed between NIOC and Dana due course with the $607.5mn damages expected
affiliate Crescent Petroleum in 2005 for the UAE to “significantly bolster” the company’s balance
Gas Project, which was intended to provide gas sheet.
supplies to Crescent beginning in December Meanwhile, Dana and Crescent, which are
2005, but no volumes were ever received, accord- the joint operators of the Pearl Petroleum con-
ing to Dana. sortium in the Kurdistan region of northern
“The company has been updated by Cres- Iraq, are working to add another 250mn cubic
cent Petroleum regarding the issuing of the final feet (7.1mn cubic metres) per day of gas from the
award for damages in the first arbitration against Khor Mor gas field by 2023 under the KM250
NIOC which was commenced in 2009, pursuant expansion project.
to which a liability award was already made in A further expansion is planned under the
2014,” it said. KM500 project but sign-off on this project is
Dana noted that this concludes the first arbi- dependent on reaching an agreement with
tration case, covering the first 8.5 years of the an offtaker. Talks are reported to be ongoing
GSPC from 2005 to 2014. A second arbitration regarding extending the Kurdistan region’s pipe-
is ongoing relating to the remaining 16.5 years line network into Turkey or into Federal Iraqi
of the contract from 2014 to 2030, which Dana territory.
Week 39 29•September•2021 www. NEWSBASE .com P9
