Peregraf
The Kurdistan Regional Government (KRG) has prevailed in a legal dispute against Genel Energy Miran Bina Bawi Limited (GEMBBL), with an arbitration tribunal ordering the company to pay the KRG nearly $27 million in compensation.
The KRG’s Ministry of Natural Resources announced that the arbitration ruling, issued on April 4, 2025, upheld the government’s termination of the Production Sharing Contract (PSC) for the *Miran and Bina Bawi fields and dismissed all claims filed by Genel Energy against the KRG.
The dispute stemmed from the KRG’s termination of the PSC with Genel Energy in January 2024, following an arbitration tribunal’s initial ruling that affirmed the government’s right to cancel the agreement. The tribunal rejected all of Genel’s counterclaims, reinforcing the KRG’s position.
In its final award, the tribunal ruled that Genel Energy must pay the KRG:
- $26,868,905.29** (Twenty-six million, eight hundred sixty-eight thousand, nine hundred five US dollars and twenty-nine cents)
- Post-award interest
The KRG Ministry of Natural Resources emphasized that this decision strengthens the KRG’s legal and contractual rights in oil and gas agreements, ensuring that international companies operating in the region comply with their obligations.
Genel Energy, a UK-based oil firm, has faced financial and operational challenges in the Kurdistan Region in recent years. This ruling adds to its legal setbacks, following previous disputes over oil exports and revenue-sharing.
The KRG reiterated its commitment to upholding contractual and legal standards in the energy sector, ensuring that all parties adhere to mutually agreed terms. This case serves as a precedent for future disputes involving international oil companies in the region.
- Genel Energy is expected to comply with the tribunal’s decision.
- The KRG may pursue further legal measures if payment is delayed.
This ruling marks a significant legal and financial victory for the Kurdistan Regional Government, reinforcing its authority in managing natural resource agreements.