Three operators that hold oil and gas rights in Iraq’s Kurdistan region have filed an arbitration action in a London court seeking to clarify contractual rights under their agreement with the Kurdistan Regional Government.
The companies said 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 Khor Mor and Chemchemal fields including the outstanding receivables owed by the Ministry of Natural Resources in the Kurdistan region.
The companies said the filing “follows concerted and sincere efforts to resolve differences of opinion with the MNR including a formal mediation procedure under the LCIA Rules, with which the MNR unfortunately declined to engage.”
“The board of directors of Dana Gas made their decision in order to protect the interests of the company’s shareholders and investors, and very much hopes that all outstanding matters with the MNR will be resolved, amicably and in good faith, in the shortest possible time, in order to enable full and proper development of the fields, as envisaged in the agreement, for the benefit of the people of the Kurdistan Region and all of Iraq,” Dana Gas said.
Dana Gas and its consortium partners said they are the largest oil and gas sector investors and producers in the Kurdistan region, to date having invested more than $1 billion and produced 100 million bbl of oil equivalent without interruption in the 5 years since October 2008.
The uninterrupted production has enabled “affordable electricity provision and an economic and social transformation of the Kurdistan region under the progressive policies of the KRG,” Dana Gas said.
The three companies “reaffirm their intention to continue fulfilling their obligations under the terms of the agreement with the support and cooperation of the KRG and reiterate their continued, long-term commitment to the KRG and to the people of the Kurdistan Region and all of Iraq.”