Iraq is paying billions of dollars to Dana Gas and its partners to settle a lawsuit in London

Iraq is paying billions of dollars to Dana Gas and its partners to settle a lawsuit in London



30/08/2017

Economy News Baghdad:

The Kurdistan region of Iraq has reached a final and final settlement with Dana Gas and its partners for a $ 2.2 billion lawsuit in London. The semi-autonomous region will pay $ 1 billion to the UAE-based company, the two sides said.

Dana Gas and its parent company Crescent Petroleum and its partners filed a lawsuit against the Kurdistan Regional Government of Iraq before the London Court of International Arbitration in October 2013 related to their contract with the territorial government, accusing the government of paying less than their dues for the production of gas liquids.

The government of Kurdistan said the issue came amid a war against its budget and was undermined by a sharp drop in revenues as a result of lower oil prices, forcing it to postpone and restructure payments owed to its contracting parties.

Under the settlement, Kurdistan will pay $ 600 million immediately to the Pearl consortium, in which Dana Gas and Crescent Petroleum hold a 70% stake, while its Austrian partners OMV, Hungary's MOL and R The German WU has a share of 10% each.

The region will also pay another $ 400 million immediately earmarked exclusively for further Pearl development to increase production in its fields.

The remaining $ 1.24 billion will be reclassified from debt to outstanding costs recovered by Pearl from future revenues.

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