International courts have ruled that the Kurdistan regional government in Iraq has 14 days to pay US$100 million to Sharjah-based Dana Gas and its consortia partners.
The High Court of England has upheld the ruling of the London Court of International Arbitration ordering the KRG to pay Dana Gas and its partners, Crescent Petroleum and Pearl Petroleum, outstanding arrears for the development of hydrocarbon assets.
The group is exploring and developing the Khor Mor and Chemchemal gas fields. The supplies from these assets were to provide domestic electric power to plants near Erbil and Suleymania.
Under the latest ruling, the KRG has 14 days to make payments or the consortia has the right to confiscate government assets.
The initial filing was brought to the London Court of International Arbitration 10 months ago with the court giving the KRG 30 days to make payments. The government failed to comply leading the consortia to take matters to the higher court.
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