Kurdistan pays $1 billion to Dana Gas, partners to settle London case
The full and final settlement of the $2.24 billion case is the latest effort by the semi-autonomous region to put its finances in order ahead of a referendum next month seeking independence from the government in Baghdad.
Dana Gas, its parent Crescent Petroleum and its partners filed a case against the Kurdistan Regional Government (KRG) in the London Court of International Arbitration in October 2013, accusing it of underpaying for gas liquids production.
The KRG has argued the case came amid its fight against Islamic state and as its budget suffered from a steep drop in revenues due to lower oil prices, which forced it to postpone and restructure payments to some counter-parties.
Under the settlement, Kurdistan will immediately pay $600 million to the Pearl Consortium, in which Dana and Crescent own 70 percent and their partners Austria'sOMV, Hungary's MOL and Germany's RWE own 10 percent each. ■