Dana Gas and Crescent Petroleum Reject KRG Breach Claims

Dana Gas and Crescent Petroleum have denied breaching their contractual obligations to supply natural gas from the Khor Mor field in Iraq's Kurdistan region. The companies started supplying 100 million standard cubic feet per day of gas to Iraq's electricity ministry on Tuesday, but were accused by the Kurdistan Regional Government (KRG) of doing so unilaterally and outside of the contractual framework.

The KRG said it had been informed of the agreement in January, but claimed it received notification that supplies had begun only at the same time as the companies' public announcement. Dana Gas and Crescent Petroleum responded by stating that they were surprised by the statement and that the KRG had been kept abreast of discussions prior to the agreement.

The companies maintained that their actions were in strict compliance with their exclusive marketing rights and did not require any additional authorization or approval from the KRG. They also pointed out that the KRG has been in arrears for over three years, while they continued to meet their gas supply obligations to the region.

The dispute highlights the complex relationships between the federal government and regional governments in Iraq, as well as the challenges faced by companies operating in the country's energy sector. The Khor Mor field is one of the Kurdistan region's most important gas assets, supplying fuel for power generation. The new supplies to Kirkuk come at a time when Iraq is grappling with persistent electricity shortages, particularly during peak summer demand.