Rockhopper Exploration (LON: RKH) shares are climbing on Tuesday following an update on its international arbitration against the Republic of Italy in relation to the Ombrina Mare field.
The arbitration, which has been much talked about, could see Italy forced to pay millions in damages after it banned new drilling near its coast.
The case was widely reported due to the outrage at tribunals that allow fossil fuel companies to sue governments when they pass laws to protect the environment.
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Rockhopper obtained a licence to drill at the Ombrina Mare field. However, after opposition, the Italian Government imposed a ban on oil and gas projects in the area.
Rockhopper is using a little-known legal mechanism to sue the Italian Government.
The company provided an update today, stating that it has yet to hear news from the tribunal, but they continue to believe it has a solid case to recover “very significant monetary damages” based on lost profits.
Rockhopper said that Italy breached the Energy Charter Treaty.
Its share price has risen this morning, climbing to 10.16p, up 4.63%.
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