In August the arbitration panel held that Italy had breached its obligations under the Energy Charter Treaty, entitling Rockhopper to compensation of €190 million (US$187.7 million) plus interest.
The Italian government also has requested a provisional stay of the enforcement of the Award pursuant to Article 52(5) of the ICSID Convention.
Following Italy’s reintroduction of a ban on exploration and production activity within 12 nautical miles, the Ministry of Economic Developments informed the company it would not award a production concession covering the Ombrina Mare field discovery area, which Rockhopper secured following its acquisition of Mediterranean Oil & Gas.
Rockhopper claimed notice was served despite the Ombrina Mare project having completed all required technical and environmental authorizations.
The company is taking legal advice on the submissions it will need to make to contest this application.
CEO Samuel Moody said annulment proceedings are likely to last about 18 to 24 months.
“A huge amount of work has been involved since we acquired Mediterranean Oil & Gas in 2014 and commenced the Arbitration in 2017. Rockhopper continues to believe it has strong prospects of recovering very significant monetary damages – on the basis of lost profits – as a result of the Republic of Italy’s breaches of the Energy Charter Treaty,” Moody said.