London Arbitration Court Orders Turkish Company to Pay Over KRG $26 Million

Reuters

Oil field.

Due to delays in fulfilling its contractual obligations, the Turkish company Genel Energy was ordered by the London Court of International Arbitration (LCIA) to compensate the Kurdistan Region with more than $26 million.

While the Kurdistan Regional Government (KRG) initially demanded $36 million in compensation, Genel Energy acknowledged in a statement that it had lost the case before the LCIA and that the court had finally ordered the corporation to pay $26,826,905. 

Genel Energy's noncompliance with its contractual obligations concerning the development of the Miran and Bina Bawi fields was noted in the verdict.

The LCIA applied a 2% monthly interest rate to the compensation sum, which means that if Genel Energy misses any monthly payments, the total compensation will rise by an extra 2% per month, according to the statement.

Due to Genel Energy's noncompliance with its duties to the Ministry of Natural Resources, KRG had already terminated its development contracts with the company by the end of 2021.

While the Miran field is situated close to Tasluja in the Sulaymaniyah Governorate, the Bina Bawi oil and gas fields are situated close to the Taq Taq area in the Erbil Governorate.



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