Tribunal Rules in Favour of Dana Gas in Iran Gas Dispute

Middle East natural gas player Dana Gas on Sunday announced its partner Crescent Petroleum has won arbitration ruling in a dispute against National Iranian Oil Company (NIOC).

“Dana Gas has been notified by Crescent Petroleum that the Arbitration Tribunal has issued a Final Award for the merits phase of the proceedings, determining that the 25-year Contract between it and NIOC is valid and binding upon the parties, and that NIOC has been obligated to deliver gas under the Contract since December 2005,” Dana Gas said in a statement.

The Gas Sales and Purchase Contract between Crescent Petroleum and the National Iranian Oil Company (NIOC) for the supply of gas to the UAE been the subject of international arbitration since June 2009.

According to Wall Street Journal, Crescent National Gas Corp, a company co-owned by Dana and Crescent Petroleum, in 2001 signed a deal with NIOC for the supply of 600 million cubic feet a day of Iranian gas, which was scheduled to come online in 2005.

However, deliveries were delayed after calls from Iranian officials, unhappy with the pricing formula, to cancel the agreement and direct the contracted gas for domestic use, Wall Street reports.