Rockhopper Exploration, a UK-based international oil and gas exploration and production company with key assets in the North Falkland Basin, has announced a successful arbitration award in its case against the Republic of Italy, with compensation set at EUR 190million plus interest.
Harbour Litigation Funding provided financing for the case.
The proceedings were launched in 2017 following a decision by the Italian Ministry of Economic Development not to award the company a production concession covering the Ombrina Mare field. The arbitration panel has now unanimously held that Italy had breached its obligations under the Energy Charter Treaty entitling Rockhopper to compensation.
Rockhopper expects to retain approximately 80% of the award (assuming full recovery of the award).
Samuel Moody, CEO commented:
“We are delighted to have won our case. A huge amount of work has been involved since we acquired Mediterranean Oil & Gas Plc in 2014 and commenced the Arbitration in 2017. I would like to pay tribute to our team for their dedication over such a long period. We will update the market in due course once we have been able to analyse fully the results of the arbitration and its full, very positive financial implications for Rockhopper. This positive milestone builds on our recent transaction with Navitas and while work still needs to be done on Sea Lion, we believe after collection of the award, it will make a material contribution towards our share of the development costs.”