25 July 2016

GasTerra wins EUR 2 billion price review arbitration against Italian energy major Eni

An arbitral tribunal‎ under the UNCITRAL rules dismissed on 23 June 2016 all claims in their entirety brought by Eni against GasTerra. Eni had brought claims for a reduction per October 2012 of the price of gas sold by GasTerra under its long-term contract with Eni. Eni was ordered to bear the cost of the arbitration as well as a significant part of GasTerra’s costs of legal representation.

De Brauw acted for GasTerra in the arbitration with a team consisting of partners Marnix Leijten, Bregje Korthals Altes-Van Dijk and Albert Marsman, and associates Ellen van Beemen-Gerretsen and ‎Valentine Snijder.

The tribunal was composed of Mr. Laurent Lévy, Prof. Filip de Ly and Mr. John Beechey. The proceedings involved extensive provision of evidence from seven experts and culminated in ‎a two-week hearing on the merits following two earlier procedural hearings.

Eni acknowledged the outcome of the arbitration but in the period thereafter has refused to return EUR 1 billion in price reductions that GasTerra had provisionally and for invoicing purposes only granted to Eni pending the outcome of the arbitration. GasTerra subsequently attached EUR 1 billion in assets of Eni, including shares in an Eni subsidiary holding Eni’s international operations. GasTerra has further commenced a new UNCITRAL arbitration to ‎obtain return of the monies. De Brauw is also acting for GasTerra in these matters.