Business
Update on Arbitration
Update on Arbitration.
About this update from Rockhopper Exploration Plc
[{"type":"text","content":"\n\nThe 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\").\n \n13 July 2023 \nRockhopper Exploration plc\n(\"Rockhopper\" or the \"Company\")\n \nUpdate on Arbitration\n \nStay of enforcement to be lifted once Rockhopper puts in place relevant escrow arrangements\n \nRockhopper 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.\n \nAs 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).\n \nOn 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 prevented Rockhopper from taking legal action to enforce the Award in any jurisdiction.\n \nFollowing a hearing on 6 March 2023, the ad hoc committee (the \"Committee\") convened by ICSID to rule on the annulment issued the following orders with regard to the provisional stay of enforcement:\n \n1: that Italy and Rockhopper (together the \"Parties\") 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 (be...