Rockhopper Exploration plc has been awarded €190 million (£160m) compensation relating to the Ombrina Mare oil field dispute following the ICSID* arbitration with Italy.
OUTCOME
“The arbitration panel unanimously held that Italy had breached its obligations under the Energy Charter Treaty entitling Rockhopper to compensation,” added the company in a statement.
“The award is final and binding on the parties.
“Italy has 120 days to apply for an annulment of the award, which can only be annulled in limited circumstances.”
Under a legal agreement with the Falkland Island Government, the company is prevented from making any form of distribution.
Rockhopper’s main assets are in the North Falkland Basin.
AWARD
The award also includes interest at EURIBOR + 4%, compounded annually from 29 January 2016 until time of payment.
All costs associated with the arbitration were funded on a non-recourse (no win – no fee) basis from a specialist arbitration funder.
After payments to the arbitration funder, Rockhopper expects to retain approximately 80% of the award.
SEA LION
‘We are delighted to have won our case,” said chief executive Sam Moody.
“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.
Mr Moody added that the award would make a material contribution towards the company’s share of development costs on its Sea Lion asset in the Falklands.
*International Centre for Settlement of Investment Disputes