NATURGY ENERGY GROUP, S.A., in compliance with article 228 of consolidated text of Law 24/1988, of 28 July, on the Stock Market, hereby informs the Comisión Nacional del Mercado de Valores (National Stock Market Commission), of the following
IMPORTANT NOTE
ICSID award rendered in the arbitration procedure for the protection of investments initiated by Unión Fenosa Gas.
The company that is 50% owned by Naturgy UFG, owner of the Egyptian Damietta plant, has been rendered a favourable award by the International Centre for Settlement of Investment Disputes (ICSID), an institution within the World Bank Group, thus resolving the claim presented in 2014 against the Arab Republic of Egypt due to a lack of supply to UFG’s liquefaction facilities in Damietta.
The award argues that the investor was not provided fair and equal treatment as required by the bilateral investment treaty between Spain and Egypt, thereby ordering Egypt to pay 2.013 billion dollars (over 1.7 billion euros), after tax and before interest.
Naturgy trusts that this arbitral award will reach a global treaty and bring value to its investment in Egypt, through a commercial agreement and the reinstatement of gas supply to the plant.
This award demonstrates the effectiveness of resolution procedures of international conflict as an effective instrument to ensure the protection of international investments.