GasTerra starts arbitration against Eni to collect Euro 918 million

21-07-2016

GasTerra starts arbitration to collect Euro 918 million due by Eni after final arbitral award

Press Release

Groningen, July 21, 2016

GasTerra has taken note of Eni's press release dated 20 July 2016. On 23 June 2016, a final arbitral award was issued by the arbitral tribunal in the arbitration initiated by Eni under a long term gas sales agreement between GasTerra and Eni. In the arbitral award, the arbitral tribunal has dismissed Eni's claims for a price revision as of 1 October 2012 in their entirety. These claims amounted to around Euro 2 billion. GasTerra had requested the full dismissal of Eni’s claims.

Pending the arbitration, GasTerra had provisionally and for invoicing purposes only, charged a lower price as of 1 October 2012 under an agreement between GasTerra and Eni. Following the full dismissal of Eni's price decrease claims in the arbitral award, GasTerra has charged Eni the difference between the provisional price and the contract price which resulted in an additional amount of Euro 918 million including interest.

Eni has informed GasTerra that it will not pay the additional amount. According to Eni, despite the dismissal of all of its claims for a price revision by the arbitral award, the price revision 2012 has not been resolved and Eni can again claim a price revision per 1 October 2012. Furthermore, Eni has informed GasTerra that it will start proceedings in case GasTerra is not prepared to resume negotiations on a price revision as of 1 October 2012. GasTerra disagrees with Eni’s position and has initiated arbitration proceedings to collect the amount due by Eni. To secure its claims, GasTerra has seized Eni's assets in the Netherlands following leave to do so for an amount of Euro 1.01 billion from the President of the Amsterdam District Court.