Shares soar after arbitration confirms consortium’s rights to develop, produce gas, petroleum from Khor Mor and Chemchemal fields for 25 years

Dana Gas said on Sunday the arbitration court had ruled in its favour a case against the Kurdish government, sending the company’s shares to their highest level in seven months.

The company had filed a case in October 2013 in the International Court of Arbitration along with Crescent Petroluem and Pearl Petroluem to confirm its rights under its contract with Kurdistan Regional Government (KRG) in Iraq.

“The court confirmed beyond any doubt the consortium’s contractual rights, including a number of important issues addressed at the arbitration hearing,” Dana Gas said in a statement.

The court maintained the consortium’s exclusive long-term rights to develop and produce gas and petroleum from both the Khor Mor and Chemchemal fields for 25 years, trashing the earlier argument that prevented the proper and timely development of the fields.

The Arbitral Tribunal has also already fixed the date of September 21, 2015 to determine the consortium’s monetary claim against the KRG for outstanding unpaid invoices for the produced condensate and liquefied petroleum gas (LPG), now totalling $1.943 billion (Dh7.13 billion) as of end-May 2015, the statement said.

This will in turn enable the full and proper development of the Khor Mor and Chemchemal fields and could provide all of the fuel needs for power generation in the Kurdistan Region as well as additional gas volumes for export.

Dana Gas has invested over $1.2 billion in the Kurdistan Region and has already produced over 145 million barrels of oil equivalent (boe) of natural gas and petroleum liquids over almost seven years.

The company and its consortium partners continue to produce an average of over 84,000 boe per day, including 335 million cubic feet per day of gas that enables affordable electrical power generation in the Kurdistan Region of Iraq.

The company has exploration and production assets in Egypt, Kurdistan and the UAE, with an average output of 68,900 barrels of oil equivalent per day (boepd) in 2014.

Dana Gas aims to play an important role in the rapidly growing natural gas sector of the Middle East, North Africa and South Asia region.

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On Sunday, reacting to this news, shares of Dana Gas surged to its highest level in seven months. Dana Gas contributed to 23 per cent of the turnover on Abu Dhabi bourse after the company’s statement, Marwan Shurrab, fund manager and head of trading at Vision Investments & Holdings, said.

Dana Gas shares soared 14 per cent to end at 58 fils in a firm Abu Dhabi market.

Source: www.gulfnews.com

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