Italian government told to pay oil and gas firm Rockhopper Exploration £160m
The Italian government has been ordered to pay €190m (£160m) to British oil and gas company Rockhopper Exploration over its decision to block the firm from drilling in the Adriatic Sea.
An arbitration hearing ruled in favour of Rockhopper in stating Italy’s 2015 decision to block the Wiltshire fossil fuel company from drilling off its coastline contravened the international Energy Charter Treaty (ECT).
The country’s decision to ban oil and gas exploration came in response to a local campaign against Rockhopper’s plans to build an oil rig off the coast of Abruzzo in Southern Italy.
First signed in 1994, the ECT sets out an international framework for cross-border cooperation in the energy sector, including procedures for settling disputes industry investors and ECT members states.
Although Italy officially withdrew from the ECT in 2016, the terms of the treaty let states and investors file claims against Italy until 2036, under a 20-year sunset clause.
In a statement, Rockhopper said its case against Italy had been financed by a specialist litigation funder, which took a 20 per cent cut of the €190m winnings.
Rockhopper chief executive Samuel Moody said the firms is “delighted to have won our case” as he noted the decision will have “very positive financial implications for Rockhopper”.