The Kurdistan Regional Government of Iraq (KRG) and a consortium composed of Dana Gas PJSC, Crescent Petroleum Company International Limited and Pearl Petroleum Company Limited have mutually agreed to fully and finally settle all their differences amicably by terminating the arbitration and related court proceedings, and releasing all remaining claims between them, including the substantial damages asserted by the consortium against the KRG, and implement a mechanism for settlement of $2,239 million awarded by the tribunal to date. The agreed settlement provides, among others, that KRG will immediately pay Pearl a sum of $600 million and also immediately pay Pearl a further $400 million to be dedicated for investment exclusively for the aforesaid further development to substantially increase production. Under the accord, Pearl will increase gas production at Khor Mor by 500 MMscf/day, a 160% increase on the current level of production (the Additional Gas). The Additional Gas, together with significant additional amounts of condensate, is expected to begin production in approximately two years. Moreover, it was agreed that the balance of sums awarded by the tribunal ($1,239 million) is no longer a debt owed by the KRG and will be reclassified as outstanding cost recoverable by Pearl from future revenues generated from the HoA areas. The KRG will purchase 50% of the Additional Gas on agreed terms to boost the gas supply to power generation plants in the Kurdistan Region. The other 50% of the Additional Gas (250 mmscf/d) will be marketed and sold by Pearl to customers within Iraq or by export, or can be sold to the KRG as well to further boost power generation within Iraq. Pearl will also expand its local training and employment programs towards achieving maximum localization and content, as well as supporting local communities through its active Corporate Social Responsibility (CSR) programs. Dr. Ashti Hawrami, Minister of Natural Resources of the KRG, said: “The companies’ investment and production to date has already delivered substantial benefits for the Kurdistan Region through enabling cost-effective power generation. We are delighted by the outcome of this settlement which opens a new chapter in the relationship between the parties and will take the development of the important natural gas sector to new heights.” Majid Jafar, CEO of Crescent Petroleum and Managing Director of the Board of Dana Gas PJSC, added: “We have always expressed our commitment to amicable resolution of matters to enable proper development of the Khor Mor and Chemchemal fields. We are pleased with this definitive agreement which follows constructive dialogue with the KRG and promises to generate significant value for all concerned. The settlement of all debts and restoration of full cooperation gives a positive outlook for further investment and full realization of the enormous resource potential of the HoA areas.”