Ascent v Slovenia

Ascent, a UK energy company, initiated an arbitration proceedings against Slovenia, in the aftermath of the Slovenian Environmental Agency request to Ascent to undertake an environmental impact assessment (“EIA”) before proceeding with the development of the Petišovci oil and gas field. According to Ascent, the EIA was not required and never had been previously under Slovenian law. It is alleged that this requirement affected Ascent’s investment since the amount of gas produced by the field was very significantly reduced, resulting in a significant loss of the Investors’ revenues. Following on the Notices of Dispute filed by Ascent on July 23, 2020 and May 5, 2022, on August 15, 2022, Ascent announced the formal submission of the request for arbitration against Slovenia, which included a preliminary damages assessment in excess of EUR 500 million. Ascent argued that “Slovenia’s campaign against the Investor culminated in a complete ban on low-volume hydraulic stimulation, which came in effect on May 5, 2022’. Claimants alleged that Slovenia’s measures have de facto deprived Ascent of its right to produce gas in Slovenia and hence its rights have been unlawfully expropriated by Slovenia, in breach of the host State’s obligation under international law and both the ECT and the BIT.