Abu Dhabi – Mubasher: The international arbitration tribunal has awarded Dana Gas $607.5 million (AED 2.23 billion) in damages in a gas supply dispute case against the National Iranian Oil Company (NIOC).

This award will have a great impact on Dana Gas’ balance sheet, according to a bourse filing on Tuesday.

NIOC signed a 25-year gas sales and purchase contract (GSPC) with Dana’s affiliate Crescent Petroleum to process, transport, and market gas.

The operations should have been commenced in December 2005; however, NIOC did not deliver the gas.

The first arbitration covers the period of the first 8.5 years of the contract term from 2005 to 2014.

As for the remaining 16.5 years from 2014 to 2030, a second arbitration with a much larger claim is currently underway, with the final hearing set in October 2022 in Paris.

The final award on damages is expected in 2023.