KRG Ministry of Natural Resources

The KRG wishes to correct inaccurate and misleading statements made by Dana Gas PJSC (“Dana”) in a further press release dated 8 December 2015 in connection with the ongoing arbitration in the London Court of International Arbitration.  The arbitration is subject to duties of confidentiality under applicable law and arbitration rules.  Without waiving these duties of confidentiality, the KRG corrects the following public statements by Dana which are wrong:

1. Dana has not pleaded any claim to damages for “over $11 (Eleven) billion” in the arbitration.   This figure is pure fantasy.  No such figure has been raised in the arbitration.  This contrasts to the KRG’s counterclaims, provisionally and in part quantified at in excess of US$ 3 billion, which have been properly pleaded and supported in the arbitration.  Moreover, as stated in the KRG’s press releases of 22 November and 29 November, the Claimants have conceded that the KRG has an arguable case on its counterclaims, and the Tribunal proceeded on that basis.  The KRG rejects the unpleaded and unsupported figure the Claimants now seek to raise.  That figure and the allegations made in Dana’s latest press release are entirely without foundation.

2. The KRG vigorously denies that it has any liability to Dana for “wrongful interference” with its rights in the amount now alleged or at all.

3. Dana is incorrect to imply that the KRG has delayed development of the fields.  The KRG is, and has always been, willing to proceed with further development in accordance with international petroleum industry practice.  In the KRG’s view, it is Dana that has prevented further development, and caused significant loss to the KRG, in addition to the other losses caused by Dana’s breaches, as a result.

4.  As previously stated, the KRG has incurred significant damages as a result of the failure of Dana and its affiliates and principals to honour their obligations.  The KRG will continue vigorously to pursue its claims for damages and other relief against the Claimants in all appropriate fora.