The Court of Arbitration at the International Chamber of Commerce (ICC) has ruled in favour of Italy’s Edison in a dispute over the revision of long-term gas supplies from Libya.
Edison and Eni, another Italian oil firm, went into arbitration in 2010 over the revision of the price of natural gas in a long-term supply agreement from Libya.
The Paris-based court has not yet announced its decision on interests, legal costs and amounts due to be paid by Eni but according to a 1 October statement from Edison, the impact of the decision on its 2012 is estimated at more than EUR250m on the company’s earnings before interest, tax, depreciation and amortization (EBITDA).
In September, Edison won another arbitration case, worth EUR450m over liquefied natural gas (LNG) supplies from Qatar’s Rasgas.
Edison is currently also in arbitration over the contract for gas supplies from Algerian, but a decision is not expected until 2013.
Eni supplies gas to Italy through the 11-billion-cubic-metre-a-year (cm/y) Greenstream pipeline. Gas is transported from Mellitah on the northwest coast of Libya, and the Eni operated offshore Bahr Essalam field through the subsea pipeline through to Sicily and on to Gela in southern Italy.