Coro Energy PLC (AIM:CORO), the gas and clean energy group, has announced legal proceedings against an Italian contractor for damages resulting from the cessation of production at the Bezzecca field in Italy.
It alleges that the field's original construction lacked an effective cathodic protection system, which led to the shut-in of gas production in March 2020 for safety and environmental reasons.
The company is seeking damages of around €7mln, which includes lost revenue and incurred fixed costs during the shutdown period, and approximately €300,000 for capital and related costs of replacement equipment and necessary cathodic protection.
The legal claim proceeds from Bezzecca will accrue to Coro in accordance with the terms of the option agreement between the company and Zodiac Energy for the potential sale of the Italian portfolio.
In a stock market statement, Coro said: “Having both filed a claim against the relevant contractor and completed an independent investigation to determine the reasons for the incident some time ago, the company has now separately received a copy of the opinion of the expert appointed by the court assessing the merits of the company's claim.
“The company views the expert's opinion as strongly favourable to Coro's claim.”
- Coro has scheduled an investor presentation and Q&A session on March 9 at 2 pm. The event, which will be held at The Menier Penthouse in London, will include the launch of the company's 2023 Strategy and Work Programme. Refreshments and an opportunity to meet Coro's executives will be available following the presentation.