Gibson Dunn: Iraq may pay billions of dollars to those affected by its decision on Kurdistan oil

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[size=52]Gibson Dunn: Iraq may pay billions of dollars to those affected by its decision on Kurdistan oil[/size]

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[size=45]The American company, Gibson Dunn, which specializes in legal affairs, said that it expects Iraq to be forced before international courts to pay billions of dollars in compensation to those affected by its decision against the oil and gas sector in the Kurdistan Region.[/size]
[size=45]This comes at a time when the oil dispute between Erbil and Baghdad escalated after the Federal Court ruled that the legal foundations of the oil and gas sector in the Kurdistan Region are "unconstitutional."[/size]
[size=45]Since then, the Iraqi Oil Ministry has made a series of new attempts to implement the ruling, including summoning seven companies operating there to commercial court sessions that have been repeatedly postponed.[/size]
[size=45]Erbil (Kurdistan 24) - The American company, Gibson Dunn, which specializes in legal affairs, said that it expects Iraq to be forced before international courts to pay billions of dollars in compensation to those affected by its decision against the oil and gas sector in the Kurdistan Region.[/size]
[size=45]This comes at a time when the oil dispute between Erbil and Baghdad escalated after the Federal Court ruled that the legal foundations of the oil and gas sector in the Kurdistan Region are "unconstitutional."[/size]
[size=45]Since then, the Iraqi Oil Ministry has made a series of new attempts to implement the ruling, including summoning seven companies operating there to commercial court sessions that have been repeatedly postponed.[/size]
[size=45]Read also: Masrour Barzani: There is no federal court in Iraq and SOMO operates under Baath laws[/size]
[size=45]The Kurdistan Region rejected the ruling of the Federal Court on several occasions, saying that it was a political, illegal decision and not based on the provisions of the constitution.[/size]
[size=45]Gibson Dunn, a multinational law firm, said in a report published on its website recently that Iraq's decision will prompt international oil companies to initiate legal proceedings against Baghdad "unless the matter is resolved immediately."[/size]
[size=45]She pointed out that investors affected by the decision will seek compensation from Iraq before international forums, especially contract-based arbitration.[/size]
[size=45]She added, "Given the number of oil companies operating in the Kurdistan Region under long-term contracts with the Kurdistan Regional Government, Iraq's exposure to damages may reach tens of billions of dollars."[/size]
[size=45]And the Prime Minister of the Kurdistan Regional Government, Masrour Barzani, has previously reiterated his government's commitment to its contracts with international oil companies, and stressed that the Kurdistan Regional Government will not give up its rights.[/size]
[size=45]Last May, the Kurdistan Judicial Council issued a statement challenging the legality of the court's decision and the validity and jurisdiction of the court itself.[/size]
[size=45]Gibson Dunn says that "the court's decision does not automatically terminate contracts with international oil companies, as the government of Iraq has indicated that it intends to impose a cancellation or a fundamental review of these contracts."[/size]
[size=45]She indicated that "Iraq can be held contractually responsible for the breach of private security companies by taking any action either to terminate or modify these agreements."[/size]
[size=45]The Los Angeles-based company stated that "Iraq could be in trouble in contractual terms, given that the Kurdistan Regional Government represents an entity in the Iraqi state under the constitution."[/size]
[size=45]It added that "the plaintiffs can refer in particular to a recent decision of the High Court of Justice in England, in relation to the violations of two oil and gas companies, that the practices of the Kurdistan Regional Government "has taken place in the framework of the exercise of the sovereign authority of the State of Iraq."[/size]
[size=45]Gibson Dunn explained that Iraq has entered into several bilateral investment treaties, "which provide essential protection for investors and obligate Iraq to resolve disputes through arbitration."[/size]
[size=45]The company cited the example of the bilateral investment treaty between Japan and Iraq, which states that “investors must be given fair and equitable treatment and complete protection and security.”[/size]
[size=45]The company concluded by saying that “investors who are nationals of an OIC member state can initiate arbitration in accordance with the OIC investment agreement that protects the citizens of the OIC member states from expropriation and allows these citizens, through the MFN ruling, to benefit from the proven substantial protection in other investment treaties to which Iraq is a party.[/size]
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