Rockhopper considering damages claim against Italy

3rd Feb 2016 15:34

(ShareCast News) - Rockhopper Exploration was facing more disappointment this week, after an about-face of Italian legislation sent its Ombrina Mare exploration project grinding to a halt.The AIM-traded oil and gas exploration and production company said that, further to the announcement on 6 January, it had been informed by the Ministry of Economic Development that the ban on exploration and production activity within 12 nautical miles of the Italian coast.Therefore, the production concession covering the Ombrina Mare Field Area would no longer be awarded, despite the project having completed all the required technical and environmental authorisations."The company retains its interest in the exploration permit covering the Ombrina Mare Field Area," Rockhopper's board said in a statement."An extension to the suspension of the Ombrina Mare exploration permit was recently granted to 31 December 2016."Rockhopper's board said it was now considering its options, including a claim for damages and compensation against the Republic of Italy under international treaties for the protection of foreign investments.It indicated it was particularly interested in the arbitration process provided for under the Energy Charter Treaty."None of the company's other interests in Italy, including the Guendalina gas field, are expected to be impacted by the changes in legislation," the board assured.