After years of achingly slow progress, Iraq’s Kurdistan Regional Government (KRG) has pulled the plug on Genel Energy’s planned development of the Bina Bawi and Miran blocks. In a 20 August statement, Genel confirmed receipt of notice of the KRG’s “intention to terminate” the production sharing contracts (PSCs).
Genel says it “wishes to continue operations under the PSCs,” adding that it “will take steps to protect its rights under the PSCs and, if necessary, seek compensation, including for its material investment. As a first step, Genel intends to issue notice of dispute to the KRG under each PSC, contesting the right of the KRG to issue any such termination notice and, in doing so, trigger an obligation to hold good faith negotiations to resolve this matter promptly and without the need for either party to refer the matter to international arbitration.” (CONTINUED - 1111 WORDS)
