The tribunal rejected Crescent’s demand for a declaratory judgment holding NIOC responsible for paying billions of dollars in damages. Crescent had argued that NIOC should be held accountable for losses suffered by other companies due to its alleged breach of contract.
Following a three-year arbitration process, which involved two rounds of legal submissions, two hearings, and expert testimonies, the tribunal ultimately ruled against Crescent’s claims. Additionally, the tribunal denied Crescent’s request for reimbursement of its legal costs related to the case.
This ruling marks the most significant legal victory for NIOC in the Crescent arbitration case since proceedings began in 2009. With this decision, one of the most critical legal disputes against NIOC has been successfully concluded in favor of Iran’s state oil company.
The Crescent case dates back to a contract signed in 2001 between NIOC and the UAE-based Crescent Petroleum for the export of Iranian natural gas to the United Arab Emirates.
The deal became controversial due to allegations that it was disadvantageous to Iran. Disputes over pricing and contract execution led to prolonged legal battles in international arbitration courts, with Crescent seeking substantial damages from Iran.
Over the years, Iran has contested the claims, arguing that the contract’s terms were unfair and that Crescent failed to meet its contractual obligations.
