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LONDON, Dec 10 (Reuters) - Genel Energy GENL.L will start arbitration for "substantial claims" against Iraqi Kurdistan over the regional government's termination of production sharing contracts (PSC) in August for its Bina Bawi and Miran gas projects, the firm said on Friday.
A spokesperson for Genel, whose production is focused on the Iraqi Kurdistan region, declined to comment on the size of the claim. Genel has spent around $1.4 billion on the projects, including acquisition, maintenance, drilling and other costs.
"The Board has concluded that it is left with no practical alternative but to accept that the PSCs are terminated as a consequence of the KRG's repudiatory breach and to claim compensation from the KRG," Genel said.
"Genel's claims are substantial and will be brought in a London seated international arbitration to be commenced in accordance with the disputes process set out in the PSCs."
Fellow London-listed oil and gas producer Cairn CNE.L won an international arbitration case related to tax against the Indian government, with a tribunal awarding Cairn damages of $1.2 billion plus interest and costs.
(Reporting by Shadia Nasralla; editing by Jason Neely)
((Shadia.Nasralla@thomsonreuters.com; +44 778 99 43141; Reuters Messaging: Reuters Messaging: shadia.nasralla.reuters.com@reuters.net))
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