The Ministry of Economic Development of Italy informed Rockhopper Exploration that the production concession covering the Ombrina Mare field area will now not be awarded, despite the Ombrina Mare project having completed all the required technical and environmental authorizations, according to the UK-based explorer.
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Map of Ombrina Mare, offshore Italy. Map from Rockhopper. |
The announcement follows the re-introduction of the ban on exploration and production activity within 12mi off the coast of Italy that occurred early last month.
Rockhopper retains its interest in the exploration permit covering the Ombrina Mare field area. An extension to the suspension of the Ombrina Mare exploration permit was recently granted to 31 December 2016.
The company is now considering its options, which include both a claim for damages and compensation against the Republic of Italy under International Treaties for the protection of foreign investments, and in particular the arbitration process provided for under the Energy Charter Treaty.
None of the company's other interests in Italy, including the Eni-operated Guendalina gas field, are expected to be impacted by the changes in legislation.
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