San Diego, CA-based Sempra Energy was awarded approximately $172 million, including interest, to settle a 2002 dispute involving its 43% ownership of two Argentine natural gas holding companies, Sodigas Pampeana and Sodigas Sur, the company said Tuesday. The award comes from an autonomous third-party organization, the International Centre for Settlement of Investment Disputes.

The international unit made its award last Friday as the result of arbitration proceedings that took place under the 1994 Bilateral Investment Treaty between the United States and Argentina, Sempra said. The award also could accelerate Sempra’s efforts to sell its Argentine interests, as the company had announced late last year was its intention. A Sempra spokesperson told NGI the sale plans would continue as they have been proceeding.

Sodigas companies control Camuzzi Gas Pampeana SA and Camuzzi Gas del Sur SA, which collectively are Argentina’s largest natural gas distributor, serving about 45% of the nation. They serve about 1.5 million customers through natural gas transmission and distribution pipeline systems.

Sempra’s dispute involved its efforts to recover the utilities’ diminution in value that occurred as a result of measures taken by the Argentine government in early 2002.

“We are pleased that after several years this arbitration case has been decided in our favor,” said Javade Chaudhri, Sempra general counsel. “We hope that the government of Argentina will honor its legal obligations as we seek immediate enforcement of the award.”

The international dispute unit is linked to the World Bank, providing facilities for conciliation and arbitration of disputes between member countries and its investors. Use of the center’s dispute resolution services, however, is entirely voluntary, Sempra said.

However, once the parties have consented to arbitration under the international unit’s auspice, neither party can unilaterally withdraw its consent, Sempra said. Further, all of the nations contracting with the international center are “required to recognize and enforce [the center’s] awards as if it were a final judgment of that country’s court.”

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