London-listed Genel Energy has acknowledged that there is little it can do to prevent Iraq’s Kurdistan Regional Government (KRG) from terminating its production sharing contracts (PSC) for the Miran and Bina Bawi gas fields. Following the KRG’s stated intent to do so on 20 August (MEES, 20 August), Genel announced on 10 December that “the Board has concluded that it is left with no practical alternative but to accept that the PSCs are terminated as a consequence of the KRG’s repudiatory breach.”
Nevertheless, Genel is adamant that it will claim compensation for the move. “Genel’s claims are substantial and will be brought in a London-seated international arbitration to be commenced in accordance with the disputes process set out in the PSCs.” (CONTINUED - 233 WORDS)