Energy
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UAE Firm Open to Iran Gas Deal

UAE Firm Open to  Iran Gas DealUAE Firm Open to  Iran Gas Deal

The UAE's Dana Gas has not been able to reach a deal on importing Iranian natural gas and an arbitration process will continue, chief executive Patrick Allman-Ward said in a statement.

However, Dana and its affiliate Crescent Petroleum are still open to further discussions with Iran, which also wants to see the dispute resolved, Allman-Ward was quoted as saying by Reuters.

National Iranian Oil Company and Crescent signed a 25-year contract in 2001 for Iran to deliver gas to the UAE, with the price linked to oil. But deliveries were suspended as oil prices rose and some officials and politicians in Iran called for a revision to the gas pricing formula.

Allman-Ward said an arbitration tribunal in The Hague, the Netherlands, would hold another hearing on damages claimed by Dana in September.

Asked if Dana might simply pull out of the Iran deal, he said: "I'm a businessman, if someone made an offer for my assets or for the contract we have in Iran, I'd consider."

Last year, Dana's production of gas and other hydrocarbons was the equivalent of 63,900 barrels of oil per day. 

On Tuesday, Allman-Ward said total production would be equivalent to over 64,000 bpd as the UAE's Zora gas field came on stream.

Financialtribune.com