TIDMRKH
RNS Number : 8586F
Rockhopper Exploration plc
13 July 2023
The information contained within this Announcement is deemed by
Rockhopper Exploration plc to constitute inside information as
stipulated under the Market Abuse Regulation (EU) No. 596/2014 as
it forms part of UK law by virtue of the European Union
(Withdrawal) Act 2018 ("MAR").
13 July 2023
Rockhopper Exploration plc
("Rockhopper" or the "Company")
Update on Arbitration
Stay of enforcement to be lifted once Rockhopper puts in place
relevant escrow arrangements
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 also requested a provisional stay of the
enforcement of the Award pursuant to Article 52(5) of the ICSID
Convention. The provisional stay prevented Rockhopper from taking
legal action to enforce the Award in any jurisdiction.
Following a hearing on 6 March 2023, the ad hoc committee (the
"Committee") convened by ICSID to rule on the annulment issued the
following orders with regard to the provisional stay of
enforcement:
1: that Italy and Rockhopper (together the "Parties") shall
confer - in good faith and using their best efforts to cooperate
and find an effective arrangement - for the mitigation of the risk
of non-recoupment using a first-class international bank outside
the European Union (or as Italy and Rockhopper otherwise agree) to
be put into place in anticipation of the termination of the
provisional stay of enforcement of the Award. This is to mitigate
the perceived risk that, in the event the Award is annulled, Italy
may not be able to recover Italian assets seized or frozen by
Rockhopper (before the ad hoc Committee issues its decision on
annulment) in court enforcement proceedings.
2: that Rockhopper shall, within 30 days of the date of the
decision, apprise the Committee of arrangements agreed with Italy
for the mitigation of the risk of non-recoupment or that
negotiations have failed and, in the latter event, propose concrete
arrangements in accordance with the decision for the mitigation of
the risk of non-recoupment. Italy may then briefly comment on
Rockhopper's proposal within 10 days, constructively highlighting
any areas of disagreement between the Parties.
In line with the preceding orders and following failure to agree
arrangements with Italy, Rockhopper submitted its proposed
arrangements (the "Escrow Arrangements") to mitigate the risk of
non-recoupment on the 24 May 2023. On the 5 June 2023 Italy
submitted its comments on the Escrow Arrangements.
On the 12 June 2023, the Committee informed the Parties that,
subject to allowing an additional opportunity for the Parties to
comment, it intended, subject to Rockhopper implementing the Escrow
Arrangements, to lift the Stay of Enforcement.
On the 11 July 2023, and having received additional comments
from the Parties the Committee issued the following orders with
regard to the provisional stay of enforcement:
1: That the provisional stay of enforcement shall terminate 5
business days following the provision by Rockhopper to Italy of
documentation that escrow arrangements in the form proposed have
been established, provided that Italy does not within those 5
business days submit a reasoned written objection in these
annulment proceedings that the escrow arrangements established are
not in accordance with the proposed arrangements.
2: Reserves its right to revisit its decision at any time;
and
3: Reserves its decision on costs
The decision to lift the provisional stay of enforcement is
unrelated to the merits of Italy's annulment request. A final
hearing in relation to Italy's request to annul the Award is
scheduled to take place in Q1 2024. Guidance given by Rockhopper in
the Company's 31 October 2022 announcement that the entire
annulment process is likely to take 18-24 months from that date
remains in place. Rockhopper is currently paying all legal costs
associated with the annulment.
Sam Moody, Chief Executive of Rockhopper Exploration, commented:
"We welcome the approach adopted by the ad hoc Committee and
believe this outcome will allow us to commence enforcement with no
risk to Italy of non-recoupment pending the outcome of the
annulment."
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/Gordon Hamilton
Tel. +44 (0) 20 7523 8000
Peel Hunt LLP (Joint Broker)
Richard Crichton/Georgia Langoulant
Tel. +44 (0) 20 7418 8900
Vigo Consulting
Patrick d'Ancona/Ben Simons/Fiona Hetherington
Tel. +44 (0) 20 7390 0234
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END
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July 13, 2023 02:00 ET (06:00 GMT)
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