REG - Rockhopper Exp plc - Request by Italy for Annulment of ICSID Award

Rockhopper ExplorationAnnouncement

31/10/2022 07:00

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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 €190 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 £3 million is due to the Company's legal representatives
on establishing liability and an award requiring Italy to pay over €25
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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