El Paso, EWC locked in legal battle over S. Sulawesi power, gas projects

Australian energy firm Energy World Corporation (EWC) reported on Friday that it had been locked in legal battle with US energy firm El Paso Corporation over the latter?s decision to sell interest in Sengkang power and gas projects in South Sulawesi to a subsidiary of Globeleq.

EWC said in a statement filed with The Australian Stock Exchange that El Paso?s decision to sell interest in Sengkang projects to Globeleq was a material breach of partnership agreement, as El Paso was required to sell its interest in the project to EWC.

EL Paso has 47.5 percent stake in 135 MW gas-fired power plant and 50 percent in Sengkang PSC block which supplies gas to Sengkang power plant. EWC also has the same stake with El Paso in both projects.

On September 14, said EWC, El Paso through Ventures and Epic commenced proceedings in the Federal Court of Australia challenging the validity of the partnership agreement. EWC on November 9 issued cross claim in those proceedings, seeking orders ultimately requiring El Paso to sell its interest in Sengkang power plant and Sengkang Block to EWC.

?Since this matter are now under legal due process, EWC is restricted from commenting further,? said the company.

El Paso announced in August it had agreed to sell several of shares in Asian power plants including in Sengkang to another US power firm Globeleq. The company expected sales closure by the end of this year. (alex)