Archive for month: November, 2015

22 November 2015 – Erbil, Kurdistan Region, Iraq – The Kurdistan Regional Government (KRG) refers to a decision of the English Commercial Court of 20 November 2015.  The Court’s decision does not relate to the substantive merits of the claims and counterclaims in the on-going arbitration between the KRG and Dana Gas PJSC, Crescent Petroleum Company International Limited and Pearl Petroleum Company Limited (collectively, “the Claimants”).

The order relates to an interim payment of $100 million decided by the Tribunal last year on a provisional and reversible basis,  because of the purportedly precarious financial condition of Dana.

Following this interim order in October 2014, the Claimants made an application to the Court in December 2014.  The Claimants’ application was set aside by the Court in January 2015 due to the Claimants’ failure to comply with provisions of the United Kingdom State Immunity Act 1978 applicable to the KRG.  The Court awarded indemnity costs to the KRG and against the Claimants.

After this, the Claimants re-issued their application to the Court.   The KRG feels that this further escalation was unnecessary and could have been avoided.  Dana was fully aware of KRG’s financial difficulties and its need to maintain its effective fight against ISIS terrorism and support for the more than 1.8 million refugees and internally displaced persons in the Kurdistan Region.  Regrettably, rather than working constructively with the KRG to find a way forward in the light of the prevailing circumstances as other International Oil Companies have done, Dana maintained its aggressive stance and pursued its application to the Court.

The KRG strongly resisted Dana’s application. Following a hearing on 28-30 October 2015, the Court made a further order based on the arbitral tribunal’s October 2014 interim order.  Further issues arising from the Court’s order, including any application for permission for appeal, will be addressed subsequently.  The Court emphasized that the arbitral tribunal’s interim order, which formed the basis for the Court’s order, did not contain a decision on the parties’ substantive rights.

In particular, the Court’s decision does not address the merits of, and has no effect on, the KRG’s substantial counterclaims against Dana and others in the on-going arbitral proceedings.  Those counterclaims have now been partially and provisionally quantified by the KRG’s experts at more than $3 billion.  Whereas the Claimants have previously sought to dismiss the KRG’s counterclaims as fabrications, the Claimants have now been forced to accept the plausibility of those counterclaims.

The KRG has incurred significant damages as a result of the failure of Dana and its affiliates and principals to honour their obligations.  The KRG will continue vigorously to pursue its claims for damages and other relief against the Claimants in all appropriate fora.

“It is with great sadness that I learned of the horrific attacks on the people of Paris. I offer the deepest condolences, and the strongest solidarity, of the people of the Kurdistan Region.

France has stood resolutely with the Kurdistan Region in our own struggle against terrorism, and we will stand with them in theirs. The challenge of defeating this threat unites so many nations and peoples around the world. It is a struggle between civilization and intolerance and barbarism.

Attacks like this are designed to spread fear, but the international community must instead respond with a strengthened resolve. Indeed, this tragedy came one day after a great defeat for Daesh in Sinjar. Terrorism can, and will, be defeated.”

Nechirvan Barzani
Kurdistan Region Prime Minister
14 November 2015

Erbil, Kurdistan Region, Iraq (cabinet.gov.krd) – Kurdistan Region Prime Minister, Nechirvan Barzani, yesterday received Paris Mayor, Ms. Anne Hidalgo and her accompanying delegation.

The Mayor of Paris expressed her happiness with the visit noting that France has been supporting the Kurdistan Region at all stages of its development, and will continue its support, particularly at this time when the Region faces severe threats.

Praising the role of Prime Minister Barzani, Ms. Hidalgo said the Kurdistan Region has achieved considerable development within a relatively short period. She hailed the efforts of the people and government of Kurdistan Region in accommodating and offering essential services to a large number of refuge seekers, despite severe financial constraints.

Ms. Hidalgo said the international community must offer more assistance to the Region in order to improve the situation of refuge seekers.

Ms. Hidalgo proposed establishing relations between Erbil and Paris, offering full cooperation and coordination.

Prime Minister Barzani expressed his appreciation with Ms. Hidalgo’s visit and her observations, recalling France’s assistance to the people of Kurdistan during difficult times.  He welcomed establishing relations between Erbil and Paris.

Prime Minister Barzani welcomed French enterprises to participate in the development of the Region’s economy and proposed to offer all assistance.

He valued French educational institutions and the progress they are making to strengthen the capabilities of students.