REG - Rockhopper Exp plc - Update on Arbitration

Rockhopper ExplorationAnnouncement

25/04/2023 08:45

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RNS Number : 3684X  Rockhopper Exploration plc  25 April 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").

 

25 April 2023

Rockhopper Exploration plc

("Rockhopper" or the "Company")

 

Update on Arbitration

 

Tribunal orders Rockhopper & Italy to mitigate the risk of non-recoupment
by Italy with the anticipation of the Stay being lifted

 

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 also requested
a provisional stay of the enforcement of the Award pursuant to Article 52(5)
of the ICSID Convention. The provisional stay prevents Rockhopper from taking
legal action to enforce the Award in any jurisdiction.

 

Following a hearing on 6 March 2023 the ad hoc Committee convened by ICSID to
rule on the annulment has issued the following orders with regard to the
provisional stay of enforcement:

 

1: that Italy and Rockhopper 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.

 

The provisional stay remains in force during this time, pending further order
from the Committee.

 

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 pragmatic approach adopted by the ad hoc Committee and look forward to
working with Italy to find a suitable outcome which 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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