Dr Andrew Bell, representing the Phillips companies, said the matter had the potential to become very expensive and complex litigation. The Phillips Petroleum group is a major stakeholder in the multibillion-dollar Bayu-Undan gas project in the Timor Sea.

Phillips is battling to kick start stalled plans for a $US500 million pipeline to bring gas to Darwin from the 3.4 trillion cubic feet Bayu-Undan field in which it has a 58.6 per cent stake.

Development of the Greater Sunrise field has been delayed by a year to 2007 as Royal Dutch/Shell and Phillips Petroleum battle over different proposals for the huge field. Shell plans to build a world-first floating LNG plant while Phillips favours an onshore plant in Darwin.

Also heading for the courts is Energy World Corp, formerly known as Energy Equity, which is appealing to the High Court in a bid to stop a former senior executive using Corporation Act liquidation procedures against the listed company.

Lawyers for Energy World will go before the WA Supreme Court this week to seek an order preventing one of its former executives, Mr Paul Bridgwood, from acting on the $363,000 demand until the matter goes before the High Court later this year.

Energy World is currently in talks with the Commonwealth Bank in a bid to renegotiate an $82 million secured debt after unveiling a three-month repayment moratorium on Christmas Eve.