Eni Loses GasTerra Arbitration, GasTerra Counterclaims

(Updates with information from GasTerra's statement)

Italian major Eni lost its arbitration battle to reduce the price it paid Dutch marketer GasTerra for gas deliveries between 2012 and 2015, it said July 20, but it has not considered the court’s award final.

GasTerra has fought back with a counter-claim for €918mn against Eni, being the difference between what Eni paid under a provisional agreement since the start of the review period, and the contract amount, plus interest.

Eni was claiming €2bn over the period, suggesting that GasTerra met Eni’s claims half way, until the final decision was made. But as Eni did not pay the sum owing, Gasterra seized assets belonging to Dutch-registered Eni International to the value of €1.01bn, with the authority of the Amsterdam district court.

“GasTerra considers that, by dismissing Eni’s claim, the award restored the original contract price, on the basis of which GasTerra now claims an additional amount to be paid by Eni to GasTerra,” Eni said.

This measure, which was granted after a summary review only and without Eni being heard, does not prejudice the outcome on the merits of the proceedings, Eni said.

Credit: Eni

Eni said that its external consultants advised it to ignore GasTerra’s interpretation and so it will not take the effects into account in its first half results. It has rejected GasTerra’s request for payment, “seeking good faith discussions to agree on the extent of the 2012 price revision.”

Eni considers that GasTerra’s request for payment is unfounded and will take all necessary measures to protect its rights. With respect to the interim measures obtained by GasTerra, Eni is considering its position, pending the outcome of the arbitration proceedings. Eni will further seek compensation for any damages it incurs, due to GasTerra’s legal actions.

In 2014 supplies of natural gas attributed to Eni from The Netherlands amounted to 13.46bn m³, 16% of Eni's total supplies.

William Powell