Press Release Detail



14 February 2017

Sharjah, UAE

Dana Gas PJSC today updates the market with regard to the international arbitration case it filed in October 2013, along with Crescent Petroleum and Pearl Petroleum Company Limited ('Pearl') (together the 'Claimants'), before the London Court of International Arbitration ('LCIA') in relation to their long-term contract with the Kurdistan Regional Government of Iraq ('KRG').

On 13 February 2017 the Claimants received the Third Partial Final Award dated 30 January 2017 ('Third Award') from the LCIA. This follows the First Award of 2 July 2015 confirming the Claimants' long-term contractual rights, and the Second Award of 29 November 2015 awarding the Claimants US$1.96 billion for outstanding unpaid invoices for the produced condensate and LPG.

The Third Award relates to the hearing that took place between 5–16 September, 2016, which addressed the balance of the Claimants claims against the KRG, along with the counterclaims alleged by the KRG against the Claimants.


The main findings of the Tribunal in the Third Award are set out below:

  • ​a.       Delayed Development Claim
  • The Tribunal has found in the Claimants favor that "the KRG has in breach of its obligations under the HoA wrongfully prevented the Claimants from carrying out appraisals and such other activities as are necessary to enable Pearl to put forward a proposal for a Field Development Plan ('FDP') in respect of the HoA areas in which it has exclusive rights and has thereby delayed the Claimants opportunity to develop those Areas."
  • The Tribunal reserved for consideration at a further hearing, "the determination of the amount payable by the KRG to the Claimants by way of damages for the aforesaid breaches of the HoA."
  • The Tribunal further declared "that the KRG is not entitled under the HoA to reject a proposal from Pearl for a FDP otherwise than on reasonable grounds in accordance with good petroleum industry practice."
  • b.      Update on Liquid Receivables
  • The Tribunal ordered "the KRG to pay to the Claimants US$121,095,282 in respect of condensate and LPG lifted by or on behalf of the KRG between 30 June 2015 and 31 March 2016, together with interest from the dates on which payment for such liquids was due until compliance with this order at the rate of LIBOR + 2% compounded monthly."
  • c.       Entitlement to Interest
  • The Tribunal determined that the Claimants are entitled to interest on all overdue sums for each day that such sums are overdue at the rate of LIBOR + 2% compounded monthly.
  • d.      Dismissal of KRG Counter Claims
  • The Tribunal dismissed in totality all of the KRG's counterclaims against the Claimants, finding that there was no unreasonable delay in their execution of the project.
  • The quantification of the damages for the Delayed Development Claim by the Claimants will be determined by the Tribunal at a further hearing expected to occur in Q3, 2017.


Dana Gas and its consortium partners have invested over US$1.2 billion so far and produced over 150 million barrels equivalent of gas and petroleum liquids, which has had a transformative positive effect on the local economy in the Kurdistan Region and in particular in providing gas to fuel affordable electricity supply. The companies sincerely hope that contractual commitments, as confirmed beyond any doubt by the Tribunal's findings and clear Award, will now be adhered to so that these world class hydrocarbon resources can be further properly developed for the benefit of the people of the Kurdistan Region and all of Iraq.


Prior disclosures related to the arbitration and these prior awards can be found on the ADX website:





233This Disclosure Is MadePursuant To Article 33 Of The Regulations Of The Abu Dhabi Stock Exchange AsTo Disclosure And Transparency

Copyright © 2015.Dana Gas PJSC. All rights reserved.