Oil and gas exploration company Rockhopper today said it was confident it would receive a €31m (£26.8m) insurance payment in a long-running dispute linked to restrictions on its operations off the coast of Italy.
The Salisbury-headquartered company has been locked in the wrangle since 2016 when a decision was made by the Italian government to impose restrictions on offshore oil and gas operations within 12 miles of its coast.
Rockhopper’s successful legal action over its interests in the Ombrina Mare oilfield meant it received €19m from a first tranche of a settlement and was expecting further payments before an ad hoc panel in Italy annulled the award.
Rockhopper then submitted claims and statements of loss under the terms of an insurance policy taken out last October to mitigate against any potential losses should the arbitration award by annulled.
Today the firm, which has its key assets in the North Falkland Basin, said its lead insurer had confirmed that the loss has been triggered and, as a result, it is therefore confident it will receive the full €31m amount to which it is entitled under the policy.
It said it would make a further announcement once the funds are received.
Rockhopper also intends to submit a new request for arbitration and is in discussion with the new funder with regard to the timing of this new request.
A further release will be made as and when appropriate, the firm said.
In May Rockhopper has said it was close to completing two decades’ work to develop an untapped Sea Lion oilfield 220km north of the Falkland Islands.
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