Mediterranean Oil & Gas (LON:MOG) may mount a challenge to Italy's environmental decree banning offshore exploration and production within five miles of the coast. The ban comes into force on August 26. MOG's Ombrina Mare oil and gas field is within the five-mile limit. However, the company says it believes exemptions to the decree may be applicable. It remains unclear whether further development of the Ombrina Mare field will be prohibited and is therefore investigating its legal position with counsel. The company will request clarification from the Italian authorities regarding the interpretation of the decree in relation to Ombrina Mare. Pending formal clarification, MOG says it plans to continue the current environmental assessment procedure with the aim of securing the production concession. 'In any event, should the environmental assessment process be adversely affected by the decree, MOG will consider possible action to challenge the decree.' It is also evaluating the technical and economic feasibility of alternative solutions to develop the field.
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