(Alliance News) - Rockhopper Exploration PLC on Thursday expressed confidence in its ability to secure a sizable amount in damages in the Ombrina Mare field arbitration with the Italian government.
The oil & gas company with interests in the North Falkland Basin and Greater Mediterranean regions stated it has strong prospects of recovering very significant monetary damages - on the basis of lost profits - as a result of what is says are Italy's breaches of the Energy Charter Treaty.
Rockhopper lodged a request for arbitration with the International Centre for Settlement of Development Disputes back in 2017 after the Italian government banned offshore oil and gas activity close to the coast, banning any exploration or production within 12 nautical miles of the coast. The Ombrina Mare field lies within this distance, and therefore was affected by the restrictions.
In 2019, Italy's request to suspend the arbitration was rejected by the tribunal.
On Thursday, the tribunal stated: "Deliberations have continued and work on the award is advancing. The tribunal will revert to the parties in the early part of 2021 with any final questions it might have or, if none, the declaration of the closure of the proceedings."
Rockhopper noted that under the rules of the arbitration process, a decision - referred to as an award - is due within 120 days of the closure of the proceedings.
The company previously expected the final outcome of the arbitration in first quarter of 2020.
Shares in Rockhopper Exploration were trading 3.5% lower at 6.26 pence each on Thursday morning in London.
By Ife Taiwo; ifetaiwo@alliancenews.com
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Rockhopper (RKH)