Rockhopper Exploration plc said today that the Italian Government’s request to annul the €247 million award relating to the Ombrina Mare oil field dispute is due to have its final hearing during Q1 2024.
AWARD
The award comprises €190 million plus accrued interest from January 2016 to August 2022.
Interest was paused for four months following the date of the award, 23 August 2022, and is now accruing at EURIBOR + 4% which Rockhopper estimates at between €1.25m and €1.5m per calendar month.
STAY OF ENFORCEMENT
Rockhopper said it submitted a letter to the Italian Government in September 2022 requesting payment.
In October 2022, Italy asked for an annulment of the award, which automatically prompted ICSID to put in place a provisional stay of enforcement.
On 6 March 2023, an ad hoc committee heard arguments on Italy’s application for a continuation of the provisional stay of enforcement, with a decision expected “in the next few weeks”.
Rockhopper said today that the decision on whether to continue or lift the provisional stay of enforcement was unrelated to the merits of Italy’s annulment request.
“Work continues on contesting the annulment application put in by Italy and, while there can be no guarantees, we remain confident in the merits of our legal case,” added chief executive Samuel Moody.
Rockhopper currently pays all associated legal costs.
* International Centre for Settlement of Investment Disputes