In the arbitration procedure initiated by Italian oil and gas exploration company Edison International against Croatian oil company INA, d.d., related to the Production Sharing Agreement in the Contract Area of the Republic of Croatia Offshore Adriatic Sea Izabela and Iris/Iva blocks, the Arbitral Tribunal resolved that compensation claims against INA have been rejected.
The parties are obliged to bear the legal and other costs relating to this proceeding.
“In partnership projects INA continues with the open approach to negotiations, focusing on finding mutually acceptable settlement for resolving differences in understandings, including this case, where INA’s aim – as a normal interest – is to activate and start production from the assets in the foreseeable future,” said the Croatian company in a press release.
To remind in the arbitration notice issued in 2011 EDISON stated that INA, d.d. did not fully comply with its contractual obligations under the Production Sharing Agreement in Izabela and Iris/Iva blocks on Adriatic sea, and it in the same notice claimed damage compensation from INA in the amount of cca EUR 140 million, as well as compensation for lost profit.