The London Court of International Arbitration (LCIA) has ruled that Turkish company Genel Energy must pay more than $26 million in compensation to the Kurdistan Region due to delays in its contractual obligations.

In a statement, Genel Energy confirmed it had lost the case, noting that while the Kurdistan Regional Government (KRG) initially sought $36 million in compensation, the court ultimately ordered the company to pay $26,826,905. The ruling cited Genel Energy’s failure to comply with its contractual commitments regarding the development of the Miran and Bina Bawi fields.

The statement further detailed that the LCIA imposed a 2% monthly interest rate on the compensation amount, meaning if Genel Energy delays any monthly payment, the total compensation will increase by an additional 2% each month.

KRG had already terminated its development contracts with Genel Energy at the end of 2021, following the company’s failure to meet its obligations with the Ministry of Natural Resources.

The Bina Bawi oil and gas fields are located near the Taq Taq area in Erbil Governorate, while the Miran field lies near Tasluja in Sulaymaniyah Governorate.