Rockhopper’s production plans in Italy have been shelved after its bid to circumvent an exploration ban failed.
The firm, which focuses on the Greater Mediterranean region, was informed by the Ministry of Economic Development that “following the re-introduction of the ban on exploration and production activity within 12 nautical miles of the coast of Italy, the Production Concession covering the Ombrina Mare Field Area will now not be awarded”.
Rockhopper said it would now consider making a claim for damages and compensation against the country.
They would fall under the “International Treaties for the protection of foreign investments, and in particular the arbitration process provided for under the Energy Charter Treaty”.
The Ombrina Mare project had previously completed all the required technical and environmental authorisations.
The Italian Parliament approved the 2016 Budget Law, which contains a number of restrictions offshore oil and gas activity including the general ban on exploration and production activity within 12 nautical miles of the coast of Italy.
A similar ban was in place in 2010 before being voted down in 2012.
The new legislation came into effect on January 1.
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