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Eni said to demand $10B from Statoil in arbitration

  • Eni (E) reportedly is demanding NOK60B ($10.1B) from Statoil (STO), claiming it overcharged for natural gas over several years.
  • Eni said in August that it had started arbitration proceedings against STO to secure a significant price cut, but did not give any detail on its claim at the time.
  • The dispute stems from a 1997 supply agreement that ties natural gas prices to oil.
Comments (4)
  • Michael Fitzsimmons
    , contributor
    Comments (8085) | Send Message
     
    If Eni signed a contract linking the natural gas price to the price of oil, how can if claim STO overcharged it unless the terms of the contract were not met?
    8 Nov 2013, 08:31 AM Reply Like
  • Patrick Graham
    , contributor
    Comments (13) | Send Message
     
    I agree, Michael, that this seems to be a bit of a long shot to hold up in court if there was a supply agreement. Pending a review of the agreement, I would doubt that STO deviated from the contract substantially. This would have come out much sooner if this had happened, especially when oil plummeted in 2009. However, this may be Eni hoping to ride the curtails of the manipulation claims that have been posted the past few months.
    8 Nov 2013, 08:59 AM Reply Like
  • DonSimon
    , contributor
    Comments (74) | Send Message
     
    STO is a fast up and coming oil company. IMO ENI is trying to milk the company and slowdown the competition.
    8 Nov 2013, 12:18 PM Reply Like
  • Veritas1010
    , contributor
    Comments (1312) | Send Message
     
    Look, frankly and honestly I own both companies - but if ENI and STO were two students in my class and both told be their stories, (and knowing what I know about the circumstances involved) and then also aware of whom is telling me the story (snitching) to begin with - just guess who is to be believed?

     

    STO.
    10 Nov 2013, 10:36 AM Reply Like
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