30TH AUGUST 2017
JOINT PRESS RELEASE
KRG AND PEARL CONSORTIUM REACH FULL AND FINAL SETTLEMENT
Settlement Agreement between Kurdistan Regional Government of Iraq (the "KRG") and
(i) Dana Gas PJSC; (ii) Crescent Petroleum Company International Limited; and (iii) Pearl Petroleum Company Limited ("Pearl"); together (the "Consortium")
The KRG and the Consortium, together (the "Parties"), signed a Heads of Agreement on Khor Mor and Chemchemal fields on 4 April 2007 (the "HoA"). Subsequently a dispute arose between them concerning certain matters under the HoA, and they referred this dispute on 21 October 2013 to an arbitration under LCIA case reference number 132527 (the "Arbitration") for decision by an arbitral tribunal (the "Tribunal") in London.
The Parties have mutually agreed to fully and finally settle all their differences amicably by terminating the Arbitration and related court proceedings, and releasing all remaining claims between them, including the substantial damages asserted by the Consortium against the KRG; implementing a mechanism for settlement of $2,239 million awarded by the Tribunal to date ; and proceeding with immediate further development of the HoA's world class resources for mutual benefit as well as the benefit of the people of the Kurdistan Region and all of Iraq.
The agreed settlement highlights are as follows:
The Parties are very pleased with their settlement and and look forward to working together to maximise the full potential of the HoA areas, for their mutual benefit as well as that of the people of the Kurdistan Region and all of Iraq. Under the settlement, the people of the Kurdistan Region and Iraq will enjoy additional revenues and improved electricity supply. The Parties believe that this settlement agreement confirms to international investors that the Kurdistan Region of Iraq offers an attractive and secure environment for investment.
H.E. Dr. Ashti Hawrami, Minister of Natural Resources of the KRG, said:
«The companies' investment and production to date has already delivered substantial benefits for the Kurdistan Region through enabling cost-effective power generation. We are delighted by the outcome of this settlement which opens a new chapter in the relationship between the parties and will take the development of the important natural gas sector to new heights.»
Mr. Majid Jafar, CEO of Crescent Petroleum and Managing Director of the Board of Dana Gas PJSC, added:
«We have always expressed our commitment to amicable resolution of matters to enable proper development of the Khor Mor and Chemchemal fields. We are pleased with this definitive agreement which follows constructive dialogue with the KRG and promises to generate significant value for all concerned. The settlement of all debts and restoration of full cooperation gives a positive outlook for further investment and full realization of the enormous resource potential of the HoA areas.»
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