Rockhopper Exploration plc Request by Italy for Annulment of ICSID Award (5792E)
31 Ottobre 2022 - 8:00AM
UK Regulatory
TIDMRKH
RNS Number : 5792E
Rockhopper Exploration plc
31 October 2022
31 October 2022
Rockhopper Exploration plc
("Rockhopper" or the "Company")
Request by Italy for Annulment of ICSID Award
Rockhopper Exploration plc (AIM: RKH), the oil and gas company
with key interests in the North Falkland Basin, provides the
following update on its International Centre for Settlement of
Investment Disputes ("ICSID") arbitration with the Republic of
Italy.
As announced on 24 August 2022, the arbitration panel
unanimously held that Italy had breached its obligations under the
Energy Charter Treaty (the "Award") entitling Rockhopper to
compensation of EUR190 million plus interest at EURIBOR + 4%,
compounded annually from 29 January 2016 until time of payment
(except the four-month period immediately following the date of the
Award).
On 28 October 2022, Italy submitted an application to the ICSID
seeking to annul the Award under Article 52 of the ICSID
Convention. Italy has also requested a provisional stay of the
enforcement of the Award pursuant to Article 52(5) of the ICSID
Convention. Rockhopper is consulting with its legal representatives
as to what submissions will be required to contest this
application.
The third-party funding agreement does not cover any costs
arising past the date of the Award (23 August 2022). Having
anticipated Italy might attempt to annul the Award, Rockhoppper has
a non-binding offer in place to fund both fighting the annulment
and enforcing the Award if required. The Company will now consider
this along with other funding possibilities. A separate success fee
of approximately GBP3 million is due to the Company's legal
representatives on establishing liability and an award requiring
Italy to pay over EUR25 million in damages. This amount is not
covered by either funding agreement. Given Italy's request for
annulment, the Company is in productive discussions with its legal
representatives as regards to this payment.
Samuel Moody, CEO of Rockhopper Exploration, commented:
"It is disappointing although perhaps not surprising that the
Italian government has chosen to pursue an annulment of the Award.
Based on legal advice we believe annulment proceedings are likely
to take approximately 18 to 24 months, albeit interest will
commence accruing again in December 2022. We remain confident in
the strength of our case, as was reflected in the unanimous
decision underpinning the Award in August, and very much hope and
believe the annulment request will be rejected in due course."
Enquiries:
Rockhopper Exploration plc
Sam Moody - Chief Executive Officer
Tel. +44 (0) 20 7390 0234 (via Vigo Consulting)
Canaccord Genuity Limited (NOMAD and Joint Broker)
Henry Fitzgerald-O'Connor / James Asensio / Gordon Hamilton
Tel. +44 (0) 20 7523 8000
Peel Hunt LLP (Joint Broker)
Richard Crichton
Tel. +44 (0) 20 7418 8900
Vigo Consulting
Patrick d'Ancona / Ben Simons / Kendall Hill
Tel. +44 (0) 20 7390 0234
The information contained within this announcement is deemed by
the Company to constitute inside information as stipulated under
the Market Abuse Regulations (EU) No. 596/2014 ("MAR").
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END
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