According to a press release, the settlement of a four-year-long LCIA arbitration was announced last Wednesday, 30 August, between Kurdistan and an United Arab Emirates consortium consisting of Pearl Petroleum and its parent companies Dana Gas & Crescent.
The consortium had initiated arbitration in 2013 to clarify its rights under a product sharing agreement for the operation and development of Kurdistan’s gas fields. The semi-autonomous regional government was ordered to pay 121 million $ for the delay of the group’s development plans for the fields.
The settlement expresses the will of the ex-Claimant to reclassify the remainder it is owed from a debt to an outstanding cost recoverable from future revenues from the gas blocks. Both parties agreed to extend the term of their contract to 2049, increasing the production by 160%.