May 13, 2023, 5:07 PM
News ID: 85110269
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Arbitrator in $32bn gas dispute against Iran dismissed: Official

May 13, 2023, 5:07 PM
News ID: 85110269
Arbitrator in $32bn gas dispute against Iran dismissed: Official

Tehran, IRNA - Iran’s vice-president for legal affairs has announced that Laurent Aynès, president of an international tribunal hearing a $32 billion gas dispute between the UAE-based Crescent Petroleum and National Iranian Oil Company (NIOC), has been dismissed from the case.

Mohammad Dehghan on Saturday called the removal of the arbitrator a great victory for Iran in the case, and said that the change in the arbitration team will have a significant impact on the fair and just review of the case.

“With the removal of the arbitrator, the case, which was based on unfounded allegations of a $32 billion fine against Iran, is now on the verge of collapse,” he said.

The gas supply deal, known as Crescent II, was signed in 2005, under which the NIOC would have transferred gas to Sharjah in the UAE. The contract was marred with corruption, complications from US sanctions and a lack of cooperation from the UAE. Ultimately, Iran terminated the deal, prompting Crescent Petroleum to seek arbitration in the case.

Laurent Aynès presided over the tribunal since 2018 and played a key role in issuing anti-Iranian rulings in the case. Iran had complained to the International Chamber of Commerce (ICC) that the head arbitrator was not qualified, and the ICC court of arbitration accepted that argument on March 23.

“The NIOC can now seek damages in court against the arbitrator for the losses he has imposed on the company’s national interests and rights,” said Dehghan.

Shorty after Aynès was removed from the case, co-arbitrator Klaus Sachs also resigned from his post.

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