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Business Energy

Dana Gas confirms termination of contractor at its Kurdistan Region of Iraq project

Notice of termination issued after Enerflex fails to meet contract obligations



File picture of Dana Gas' operations in Kurdistan Region of Iraq.
Image Credit: Supplied

Dubai: The UAE company Dana Gas has confirmed the termination of the contractor working at its project in Kurdistan Region of Iraq.

On Monday (August 19), the notice of termination was issued to Enerflex, the EPC (engineering, procurement, construction) contractor for the Khor Mor gas expansion work in KRI.

“The ongoing impact of performance issues has materially affected Enerflex’s ability to meet its contractual obligations,” Dana Gas said in a statement. And which led to ‘unacceptable delays’ and in turn hindering timely completion of the project (KM250).

“To safeguard the interests of Pearl Petroleum, its stakeholders and the people of the KRI, the company (Pearl Petroleum, the operating company) has taken the necessary step of issuing this notice of termination,” the statement added.

“This action will enable Pearl Petroleum to assume direct control over the remaining phases of the project, ensuring that it is brought back on track and completed in the timeliest manner.”

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Plus, 'Pearl also reserves all its rights under the contract including potential claims for damages'.

The KRI facility had been the target of mortar attacks in the recent past, but the company was able to resume existing operations swiftly enough.

Dana Gas recorded profit of Dh124 million in the first-half of 2024, a 3 per cent gain. 

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