A long-running dispute between the KRG and Dana Gas over unpaid receivables continues to prevent development of the region’s key Chemchemal gas field. However, Iraqi Kurdistan will get some respite by end-2015 after Erbil and Genel Energy agreed a sales price for the Miran gas field.
The Chemchemal gas field was awarded to Dana Gas and Crescent Petroleum in 2007. But the project is on hold pending resolution of a dispute over contractual terms and ongoing arbitration proceedings (MEES, 31 October 2014). The London Court of International Arbitration last October ordered the KRG to pay the Pearl Consortium, which includes Dana Gas, Crescent Petroleum, OMV and MOL, $100mn within 30 days by way of a second interim order. Dana Gas says that the KRG has not made payment to date and sources close to the company say they were not recipients of any of the $75mn that the KRG disbursed to DNO, Tawke and Genel Energy at the end of last year. Although the KRG has reportedly held talks with various other parties to take over Khor Mor and Chemchemal, industry sources say the ongoing legal process is likely to deter any potential investor. (CONTINUED - 709 WORDS)