KRG Accuses Dana Gas and Crescent Petroleum of Contract Breach

The Kurdistan Regional Government (KRG) has accused UAE-based Dana Gas and its affiliate Crescent Petroleum of violating their contractual obligations with Erbil. According to a statement from the KRG, the companies' move to supply natural gas from Sulaimani's Khor Mor field to the Iraqi electricity ministry was made without KRG's consent.

The Khor Mor field is the largest supplier of electricity in the Kurdistan Region, with natural gas reserves of around 1.8 trillion cubic feet. The KRG struck a deal with Dana Gas and Crescent Petroleum in 2007 to develop the region's gas capacities.

In their statement, the companies said they had commenced supplies of natural gas from the vital Khor Mor gas field to the Iraqi electricity ministry, hailing it as a 'major step' to 'open new markets and deliver much-needed gas by pipeline'. However, the KRG says this move was made without its consent.