• Natural Gas News

    UAE’s Dana Gas wins arbitration against Iran


Dana had a 25-year gas sales purchase agreement that was never honoured by Iran.

by: Daniel Graeber

Posted in:

Natural Gas & LNG News, Middle East, Corporate, Contracts and tenders, Political, Contracts and tenders, News By Country, Iran, United Arab Emirates

UAE’s Dana Gas wins arbitration against Iran

Emirati energy company Dana Gas said September 28 that it secured a $607.5mn reward from a tribunal for damages related to a contract with Iran’s national oil company.

Dana Gas said it secured a 25-year gas sales and purchase agreement that was set to enter into force in 2005 with the National Iranian Oil Company, but never received any of the Iranian gas outlined in the deal.

“This first arbitration is now concluded and covers the period of the first 8.5 years of the 25-year gas sales agreement from 2005 to 2014,” the Emirati company stated.

For the first arbitration, Dana Gas said an international tribunal awarded it with $607.5mn.

“A second arbitration with a much larger claim for the 16.5 years remainder of the contract from 2014 to 2030 is currently underway, with the final hearing fixed for October of next year in Paris, and for which a final award on damages is expected the following year in 2023,” Dana Gas stated.

This is the second arbitration victory for Dana Gas this year. The company in July said it would continue operating its assets in Egypt after winning an arbitration case against Texas company IPR Energy.

Dana agreed to sell its onshore oil and gas assets in Egypt to IPR for $236mn in October last year, with the sale covering its 100% interests in the El Manzala, West El Manzala, West El Qantara and North El Salhiya onshore concessions and associated development leases. But Dana later terminated the deal, saying transaction conditions were not met by an April 14 deadline.

IPR disputed Dana's decision, filing a case at the London Court of Arbitration. But the tribunal rejected IPR's claim "in its entirety," Dana said, "concluding that Dana Gas' termination of the SPA [sales and purchase agreement] was valid."