Ascent Resources plc’s has revised its preliminary damages claim to more than €500 million [£422m] over oil and gas interests against the Republic of Slovenia.
PETIŠOVCI
The figure is included in the formal submission by the company and its subsidiary Ascent Slovenia Ltd, referred to as the investors, of their dispute with Slovenia to arbitration.
The heart of the investors’ claim is that Slovenia has prevented them from developing the Petišovci oil and gas field, in particular, the “restimulation of two wells PG-10 and PG-11a” necessary to maintain the gas levels produced from the tight rock reservoir.
Additional reasons cover actions by different departments of the Slovenian government and comments made in the country’s parliament.
CLAIM
The International Centre for Settlement of Investment Disputes (ICSID)* will administer the proceedings.
Ascent and Ascent Slovenia Ltd (Ascent Malta) filed Notices of Dispute on 23 July 2020 and 5 May 2022 respectively.
“Ascent UK and Ascent Malta bring this claim in relation to Slovenia’s measures that have destroyed the value of Ascent’s investments in the Slovenian energy sector, and which have de facto deprived Ascent of its right to produce gas in Slovenia,” added Ascent today in a statement.
“Ascent’s rights have been unlawfully expropriated by Slovenia, in breach of the country’s obligations under international law and both the ECT [Energy Charter Treaty] and the BIT [UK-Slovenia bilateral investment treaty].
“The investors have therefore sustained losses for which they are seeking compensation.
“According to the investors’ preliminary estimates, the losses sustained are in excess of €500 million.
“It should be cautioned that in the event the company is successful in its claim any amount actually received by the company may be significantly lower.”
DISCUSSIONS
Ascent chief executive Andrew Dennan added that the company’s funding will be a “no win – no fee” style arrangement.
“The formal request for arbitration is a detailed thirty-two page document, plus supporting materials, setting out our case and includes an initial estimate of damages in excess of €500 million.
“The company remains amenable to discussing settlement with the Republic of Slovenia following its review of the matter or otherwise pursing our damages claim through to a binding result for the company.”
* The ICSID is an international arbitration institution established in 1966 for legal dispute resolution and conciliation between international investors and states. ICSID is part of and funded by the World Bank Group with its headquarters in Washington, DC.