KRG Ministry of Natural Resources

16 July 2014 - 

Erbil, Kurdistan Region, Iraq - The Kurdistan Regional Government (KRG) refers to public statements made by Dana Gas, and attributed to Dana Gas recently in Reuters, The Financial Times, and other press agencies, in connection with ongoing arbitral proceedings between Dana Gas and the KRG. 

The arbitration is subject to duties of confidentiality under applicable law and arbitration rules, and the continuing public statements by Dana Gas are contrary to those duties. 

Without waiving these duties of confidentiality, the KRG wishes to correct inaccurate and misleading public statements made by Dana Gas.

Dana Gas owes the KRG substantial sums, provisionally quantified at in excess of USD 4.8 billion, which are the subject of claims by the KRG against Dana Gas. 

Contrary to the assertions by Dana Gas, no sums are “outstanding” from the KRG to Dana Gas. The Tribunal has not reached any final determination on any of the main issues before the Tribunal. The Tribunal has not reached any final determination that any sums are due, still less “outstanding” from the KRG. The KRG denies that any such amounts are due.

Dana Gas has made public the Tribunal’s ruling regarding interim payments but has mischaracterised that ruling.  The ruling did not concern the main disputes on the merits between the parties.  Instead, the ruling related to Dana Gas’s request for provisional payments in the course of the arbitration, and prior to a decision on the merits, to avoid allegedly serious financial difficulties on its own part.  The Tribunal did not uphold the price that Dana Gas seeks in the arbitration, and the ruling did not reflect that price.  The Tribunal also rejected Dana Gas’s requests for significantly larger interim payments over a longer time period.    

Further, the Tribunal does not recognise an obligation for the KRG to continue to lift and pay for condensate under all circumstances.

The KRG will continue vigorously to pursue its claims against Dana Gas in all appropriate forums.