3rd Jun 2025 10:43
(Alliance News) - Rockhopper Exploration PLC on Tuesday suffered a blow in its campaign to win GBP190 million in tranche payments from the Italian government.
The Salisbury, UK-based oil and gas miner reported that the International Centre for Settlement of Investment Disputes had annulled Italy's second tranche payment to Rockhopper. The mining firm plans to submit a claim based on insurance policy announced back in October.
According to Rockhopper, should the Italian government succeed in obtaining an entire or partial annulment of the claim, the miner will still be entitled to GBP31 million, through the combination of the second tranche payment and the insurance payout.
Back in August 2022, Rockhopper shares leaped 88%, after the ICSID ruled in favour of the firm's arbitration case against Italy. The mining firm claimed the government had breached the Energy Charter Treaty in relation to Rockhopper's Ombrina Mare field in the Adriatic Sea, and consequently owed Rockhopper GBP190 million.
Italy in October 2022 applied for an annulment under Article 52 of the ICSID Convention, which allows an award to be contested if the tribunal was corrupted, if there was departure from due process or if the explanation for the claim was inadequate.
The ICSID in 2023 ruled against an annulment, and Rockhopper entered a monetisation agreement with a specialist fund set up to handle the dispute. The mining firm received the first of three tranche payments but now faces further contestation.
"Obviously we are disappointed with this outcome," said Rockhopper Chief Executive Sam Moody commented.
"Having already received the tranche one monetisation payment our balance sheet remains robust and we intend to claim under the insurance policy. With a lead lending bank appointed, we now move to finalising the funding for Sea Lion final investment decision which has the potential to unlock very significant value as confirmed in our recently published resource evaluation."
Separately on Tuesday, Rockhopper tried to draw attention to a report by independent evaluators Netherland, Sewell & Associates, which assessed its Sea Lion project in the Falkland Islands. NSAI estimated Rockhopper's 35% stake in Sea Lion to be worth USD1.8 billion net of taxes, at a Brent oil price of USD70.00.
Rockhopper Exploration shares dropped 13% to 45.65 pence each on Tuesday morning in London.
By Holly Munks, Alliance News reporter
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