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Coro Energy PLC on Tuesday announced legal proceedings against an Italian contractor regarding damages after production was ceased at the Bezzecca gas field in Italy. Coro Energy is an AIM-listed, South East Asia-focused energy which currently centres its growth investments in low carbon energy alongside existing gas assets. It is claiming damages of around €300,000 for the capital and related costs of replacing equipment, alongside a further €7 million for consequential losses in lost revenue and incurred fixed costs while production was halted. It alleges that the original construction at Bezzecca lacked an effective cathodic protection system for avoiding corrosion, causing a shut-in of gas production in March 2020 for safety and environmental reasons. Production recommenced in November last year. Coro Energy said in a statement: ‘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.’ Any proceeds from the Bezzecca legal claim will accrue to Coro Energy, in accordance with an option agreement between Coro Energy and Zodiac Energy PLC’s for the potential sale of the former’s Italian portfolio, as announced in August last year. Shares in Coro Energy were down 1.0% to 0.26 pence each in London on Tuesday morning. Copyright 2023 Alliance News Ltd. All Rights Reserved.
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