Tehran, Iran, June 9
By Mehdi Sepahvand - Trend:
Iranian Minister of Culture Ali Jannati has said the country has been fined $13.85 billion over the controversial Crescent deal.
On one occasion Iran has been fined $13.85 billion to be paid as damage, but things do not stop at that, he told the Parliament answering MPs questions on media outlets regarding the deal, Mehr news agency reported June 9.
The UAE-based energy firm Dana Gas said last August that an international tribunal had issued a favorable ruling in the dispute over a natural gas supply contract between its affiliate Crescent Petroleum and Iran.
The tribunal ruled a 25-year contract for National Iranian Oil Co (NIOC) to supply gas to Crescent was valid and binding on both parties, and that NIOC has been obligated to deliver gas since December 2005.
NIOC and Crescent signed the contract in 2001, with the price linked to oil. Based on the contract, Iran was supposed to export unrefined natural gas from Salman gas field to the United Arab Emirates. However deliveries were delayed as oil prices rose and some officials and politicians in Iran called for a revision to the gas pricing formula.
Jannati said Iran is liable since related officials refrained from taking up Iran's side of the deal.
He added the UAE side would be legally entitled to sue Iran for more if Iran fails to answer its demand.
Edited by CN