Genel Energy, a major Turkish oil company listed on the London Stock Exchange, has been ordered by a London arbitration court to compensate the Kurdistan Regional Government (KRG) with a sum exceeding $26 million for delays in developing two oil fields. The ruling, issued on December 2, 2024, follows a lawsuit filed by Genel Energy after the KRG annulled their development contracts in late 2021. The KRG’s decision to cancel the contracts was based on Genel Energy’s failure to meet the agreed-upon terms.
Initially, the KRG had sought $36 million in compensation for the delays, but the court awarded a reduced sum of $26,868,905.29. Additionally, the ruling stipulates that Genel Energy must pay a 2% monthly interest on the amount. Despite the company’s legal challenge, which sought $1.75 billion in damages, the arbitration court upheld the KRG’s right to terminate the agreements.
