GasTerra said it will seek an arbitration ruling against Eni to recover $1.01billion in back payments it was owed after the Italian oil and gas group lost a price review arbitration.
Eni said judges had rejected its bid to obtain a downward revision to the price it had been paying to GasTerra from 2012 onwards.
The company added that GasTerra’s request for backpayment was unfounded.
In a statement GasTerra said: “GasTerra disagrees with Eni’s position and has initiated arbitration proceedings to collect the amount due.”
Eni had originally initiated an arbitration aimed at obtaining downward price revision of long-term gas supply contracts with the Dutch group for the four years starting in 2012.
GasTerra said Eni had demanded the two companies resume their earlier arbitration.
Eni had demanded a price cut worth around €2billion, which GasTerra had rejected.