DUBAI: Sharjah-based Dana Gas has been awarded $607.5 million as compensation for damages in a case against the Iranian state-owned National Iranian Oil Company (NIOC).
The damages were awarded by an international tribunal, which will hear the case for the final time in October 2022 in Paris. A final award on the damages is expected to be announced in 2023, Dana said.
The dispute concerns a 25-year gas sales and purchase contract between Dana Gas affiliate Crescent Petroleum and NIOC, Dana Gas said in a statement to the Abu Dhabi Securities Exchange.
The company said though the project was due to commence in December 2005, NIOC never delivered on its commitments.
Dana Gas said the first arbitration is now concluded and covers the first eight-and-a-half years of the agreement from 2005 to 2014.
A second arbitration with a “much larger claim” for the remaining sixteen-and-a-half-year period of the contract from 2014 to 2030 is underway, Dana said.
The company said the award sum will “significantly bolster” its
balance sheet and pledged it would update the market on the collection of the sum in due course.
