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LONDON, Dec 10 (Reuters) - Genel Energy will start
arbitration for "substantial claims" against Iraqi Kurdistan
over the regional government's termination of production sharing
contracts (PSC) in August for its Bina Bawi and Miran gas
projects, the firm said on Friday.
A spokesperson for Genel, whose production is focused on the
Iraqi Kurdistan region, declined to comment on the size of the
claim. Genel has spent around $1.4 billion on the projects,
including acquisition, maintenance, drilling and other costs.
"The Board has concluded that it is left with no practical
alternative but to accept that the PSCs are terminated as a
consequence of the KRG's repudiatory breach and to claim
compensation from the KRG," Genel said.
"Genel's claims are substantial and will be brought in a
London seated international arbitration to be commenced in
accordance with the disputes process set out in the PSCs."
Fellow London-listed oil and gas producer Cairn won
an international arbitration case related to tax against the
Indian government, with a tribunal awarding Cairn damages of
$1.2 billion plus interest and costs.
(Reporting by Shadia Nasralla; editing by Jason Neely)
Capricorn Energy PLC (CNE)
