Crescent denies Iran gas deal cancellation

DUBAI — UAE-based Crescent Petroleum, the largest shareholder in Dana Gas, said Iran did not cancel a 25-year gas supply contract it had signed with the National Iranian Oil Co, or NIOC.

By (Reuters)

Published: Mon 9 Aug 2010, 11:22 PM

Last updated: Mon 6 Apr 2015, 9:45 AM

Last week, Iranian media reported that the contract had been cancelled, quoting an official from NIOC.

“The Iranian official’s statement appears to have been misinterpreted,” a Crescent Petroleum spokesman said.

“The 25-year contract between NIOC and Crescent is valid, internationally binding and currently in international arbitration, as is known, and neither side has cancelled it,” he added.

Dana shares fell as much as 6.3 per cent on the Abu Dhabi bourse amid reports of Iran cancelling the contract, traders said. Crescent has a 20.4 per cent stake in Dana Gas. “Investors are showing concern on what this could mean for Dana Gas,” said Mohamed Khaled, risk manager at Prime Emirates.

NIOC and Sharjah-based Crescent signed the 25-year gas contract in 2001, with a price linked to oil. But as oil rallied some Iranian officials called for a revision to the price formula and blamed the price dispute for delivery delays. —

More news from Business
In-store shopping regains trust


In-store shopping regains trust

What is happening now is that as Covid-19 cases continue to decline, residents are regaining confidence in in-store shopping. This is according to a Kearney study in which UAE respondents cite convenience (51 per cent), enhanced shopping experience (49 per cent) and competitive pricing (44 per cent) as the main motivators driving them back to brick and mortar stores

Business5 days ago