Kurdistan Dana Gas CEO admits losing case against KRG

Dana Gas CEO admits losing case against KRG
A flame rises from a chimney at the Taq Taq oil field in Erbil, 2014. (Photo: Reuters)

ERBIL, Kurdistan Region (Kurdistan24) – Dana Gas Company on Thursday revealed it had lost the case against the Kurdistan Regional Government’s (KRG) Ministry of Natural Resources.

Patrick Allman-Ward, the Chief Executive of Dana Gas, said the company's financial dues with the Kurdistan Region and Egypt governments were close to one billion US dollars (USD).

Allman-Ward also explained the mechanism for how both governments were going to deliver their respective payments.

He stated the financial payments due to Dana Gas from the KRG were around USD $713 million and USD $265 million from the Egyptian government

Allman-Ward told al-Arabia his company had agreed on a mechanism where the KRG would pay back at least $100 million.

He mentioned Dana Gas had recently begun selling products in local markets which generated extra revenue for the company.

Allman-Ward added the company received $100 million from the KRG and $80 million from Egypt in 2016.

Regarding the row with the KRG’s Ministry of Natural Resources (MNR) over the delay of Dana Gas’ payments, the CEO explained the decision by the International Court of Arbitration in London was a disappointment.

He revealed the KRG would pay less than the amount they had previously calculated.

In a February statement, Kurdistan’s MNR said Dana Gas was “not unilaterally entitled to charge the KRG” extra fees.

“The tribunal determined that the KRG is entitled to receive all the gas produced by all the existing facilities at Khor Mor without additional charge,” the report read.

“The tribunal entirely rejected a claim that Dana and Crescent had lost some $3.3 billion in respect to earn-out payments they claimed they would otherwise have received,” the statement continued.

The United Arab Emirates energy firm Dana Gas is one of the largest investors in the Kurdistan Region’s oil and gas sector.

 

Editing by Karzan Sulaivany

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