SHARJAH, United Arab Emirates, Aug. 11 (UPI) -- Emirati energy company Dana Gas said it received a favorable ruling in an international court over a gas supply dispute with its counterparts in Iran. Dana said its subsidiary Crescent Petroleum was told by an international tribunal its contract between it and the National Iranian Oil Co. was binding and the Iranian side has therefore been obligated to deliver natural gas since 2005.
Crescent in 2009 complained Iran failed to live up to an agreement to send 1 billion cubic feet of natural gas per day to the United Arab Emirates as agreed. Iranian Oil Minister Bijan Zangeneh had described Crescent as a "corrupt" entity employing questionable means to resolve contractual disputes.
"Crescent Petroleum also expressed its hope that all matters can now be amicably resolved through constructive discussions with NIOC," Sunday's statement read.
Fereidun Feharaki, chairman of energy consultant group Facts Global, told Argus Media in July the NIOC could be hit with a judgment valued at as much as $4 billion. Dana gave no indication of a monetary value of the assessment.
Argus reports the NIOC deal collapsed in 2005 when Iran complained the gas price associated with the initial contract was too low.