Sharjah based Dana Gas has been awarded $607.5mn by a Paris-based international arbitration tribunal as part of a long-running case against the National Iranian Oil Company (NIOC). The dispute is over a 25-year deal signed in 2001 between NIOC and Crescent National Gas Corporation, a company jointly owned by Dana Gas and its largest shareholder Crescent Petroleum, for the supply of up to 600mn cfd from the shared Salman field beginning in 2005.
Despite NIOC completing its section of the export pipeline, the agreement was effectively frozen after Iran demanded higher gas prices. In 2014, Dana won a “liability award” against NIOC. The 28 September award covers the first 8.5 years (2005-2014) of the contract (MEES, 15 August 2014).). Dana says the “second arbitration” covering the remaining 16.5 years (2014-2030) is expected to begin in October 2022 with the final award given in 2023. (CONTINUED - 154 WORDS)