Press release by Ministry of Natural Resources, Kurdistan Regional Government on a Disclosure made by Dana Gas
The disclosure announces that Dana Gas, Crescent Petroleum and “Pearl Petroleum” have commenced arbitration proceedings at the London Court of International Arbitration.
The disclosure is misleading to the regulator, to the public, and to investors. Despite previous requests from the KRG, Dana Gas has refused to withdraw or correct misleading and inaccurate statements that have been drawn to its attention by the KRG. In these circumstances, the KRG is compelled to correct the record.
There are no “outstanding receivables” owed by the KRG to Dana or Dana’s affiliates. It is Dana and its affiliates that owe the KRG significant sums.
The KRG has incurred very large losses as a result of the misrepresentations of Dana Gas and the failure by Dana Gas to meet the commitments and promises it made to the KRG. These include losses resulting from Dana Gas’s significant delay in delivering an LPG plant to the Kurdistan Region contrary to the representations and commitments that Dana Gas made to the KRG.
The KRG requires that Dana Gas and its affiliates compensate the KRG in full for the KRG’s losses, and without further delays. The KRG has communicated its position on these issues transparently and directly to the Board of Directors of Dana Gas, prior to the disclosure published by Dana Gas.
The KRG therefore requires that Dana Gas withdraw the statement that it is owed sums by the KRG, in writing and without delay. The KRG requires Dana Gas to desist from making any further public statements to this effect.
The KRG requires that Dana Gas and Crescent refrain immediately from any further assertions that an entity known as "Pearl Petroleum" has been assigned any relevant rights or duties. Pearl Petroleum is not recognised by the KRG. Dana Gas has been well aware of the KRG’s position on the status of Pearl Petroleum since 2009.
The KRG requires that Dana Gas undertake without qualification to provide an uninterrupted gas supply from the Khor Mor field for the people of the Kurdistan Region and Iraq.
The KRG objects to the misuse by Dana Gas of the KRG's proprietary data and insists that Dana Gas return the proprietary data to the KRG immediately. The KRG has insisted that Dana Gas refrains from misuse of the KRG’s proprietary data and that Dana Gas cease providing such proprietary data to third parties without the advance written consent of the KRG.
The KRG reminds Dana Gas that Dana Gas has confidentiality obligations to the KRG for which Dana Gas will be held accountable. The KRG has invited Dana Gas to address any issues, including with respect to the KRG’s entitlement to compensation, directly with the KRG. The KRG trusts that Dana will engage constructively with that request and will refrain from further breaches of its duties, including its duties of confidentiality.
The KRG reserves all its rights.
