Pourmohammadi, Zakani Talk About ‘Crescent Deal’
Pourmohammadi talked about the controversial Crescent deal, one of the country’s cases that cost millions of dollars for Iran. Zakani called the case "a treason" to Iran.
For the gas supply project, National Iranian Oil Company (NIOC) signed a 25-year gas supply agreement with Crescent Petroleum in 2001
The UAE infrastructure for the project, involving a gas sweetening plant and transmission facilities, were set up with initial investments of around $300 million. The infrastructure is largely owned by SajGas and UGTC, subsidiaries of Sharjah-based Dana Gas. NIOC also invested more than $1.5 billion in the project, developing on-site production at the Salman offshore field and critical transport facilities. The first gas supply from Iran was scheduled to begin in 2008 but no supplies were ever made.
The contract was agreed during the second term reformist president Mohammad Khatami. But the gas did not flow as agreed once the new administration of President Mahmoud Ahmadinejad, elected 2005, queried a price of $18 per 1,000 m3, or $98.5 million annually.
Crescent Petroleum filed a case against NIOC in 2009 with an international court of arbitration, and in 2010 the NIOC cancelled the contract. Iran then ignored a 2013 arbitration court ruling in The Hague in 2013 that found Iran liable. An international tribunal ruled in 2014 that the NIOC was in breach of its obligation to deliver gas since December 2005. Crescent Petroleum is currently pursuing its claims for damages through international arbitration.






