An ongoing gas price dispute between DEPA, the Public Gas Corporation, and Botas, Turkey’s state-run crude oil and gas company, will continue at a Stockhom court, where the case was transferred today.
DEPA filed this case against Botas in an attempt to have a previous ruling favoring the Turkish energy company lifted. The verdict, which vindicated a retroactive gas price increase by Botas for its Azerbaijani gas supply, called for a 180 million-euro payment by DEPA to Botas.
The case goes back approximately ten years when Botas had demanded a retroactive payment – from 2008 onwards – of 300 million euros for various natural gas pricing discrepancies. DEPA refused to pay this sum. Ensuing negotiations failed to deliver results and Botas took legal action in 2011.
Though the Turkish company’s demand for a 300 million-euro payment was reduced to 180 million euros by this court decision, DEPA still considered the sum to be excessive. Even so, the payment was completed in September, 2016 but DEPA followed up with an appeal at the Swedish court. This appeal case begins today.
It is not the only pending legal case submitted by DEPA against Botas. Last July, the Greek gas utility took legal action against Botas seeking a retroactive price revision to a contract signed by the two sides for Azerbaijani gas supplied to DEPA.
This case, submitted to the ICC in Paris, is based on two requests made by DEPA to Botas for price revisions, the first in 2011 and the second in 2016.