Pearl Petroleum initiates arbitration against Enerflex over Khor Mor Gas Project delays
Shafaq News/ On Tuesday, Dana Gasannounced that Pearl Petroleum Co. Ltd. has initiated arbitration proceedingsagainst Enerflex, the engineering, procurement, and construction contractor forthe Khor Mor 250 gas production increase project.
In August, Pearl Petroleum issued anofficial notice terminating its contractual relationship with Enerflex due tothe latter's inadequate performance in executing the contracted work.
"Enerflex's poor performanceseverely impacted its ability to meet obligations, causing significant delaysin the project in Iraq's Kurdistan Region (KRI)."
“Pearl reserves its full rightsunder the contract, including claims for damages.”
According to the company'sstatement, “this termination became effective on September 9, and PearlPetroleum has since begun arbitration proceedings under the contract to recovercosts and claim damages resulting from Enerflex's underperformance.”
Pearl Petroleum—a consortium led byCrescent Petroleum and Dana Gas—reaffirmed its commitment “to ensuring theproject's successful completion and safeguarding the interests of stakeholdersand the KRI people.”
Dana Gas confirmed that it willupdate the market on the new expected completion date for the project, as itworks with its partners at Pearl Petroleum to get the project back on track.
Notably, the Khor Mor gas field inthe Chamchamal district of al-Sulaymaniyah is Iraq's largest-producing gasfield, covering 135 square kilometers. With 8.2 trillion cubic feet ofreserves, it is crucial to generating electricity, supplying 67% of Kurdistan'sneeds. Managed by a consortium led by Dana Gas, production has been disruptedby repeated attacks, delaying expansion plans.
