Dana Gas claims that Enerflex's performance issues have led to unacceptable delays, hindering the project's progress and jeopardizing the timely completion of the expansion, which is crucial for increasing gas production by 250 million standard cubic feet per day (MMSCF/day) to meet the region's growing energy needs. Enerflex has strongly contested the termination, attributing the delays not to performance issues but to severe security concerns following a drone attack in April 2024. The attack, which claimed the lives of four foreign workers near the Khor Mor site, forced Enerflex to suspend operations and withdraw its staff. Enerflex maintains that the project site remains unsafe and cites security experts' assessments in justifying their declaration of "force majeure", arguing that the delays were beyond their control and directly linked to the volatile security environment in the region. However, a close industry source suggests that pressures from Iraqi militias, which have allegedly threatened further attacks, might be influencing Enerflex's decision to delay resuming work. The dispute has significant financial implications. Enerflex reports that the Khor Mor project, currently 85% complete, has a net unbilled revenue asset of approximately $160 million and constitutes about 6% of their Engineered Systems backlog. The outcome of this dispute could have broader implications for energy projects in the Iraqi Kurdistan Region, where security issues frequently complicate operations. Both companies are now preparing for potential legal action to defend their positions. The dispute highlights the complex challenges faced by energy companies operating in volatile regions, where security threats can significantly impact project timelines and financial outcomes.