Rockhopper v. Italy

In 2015 the Italian Parliament re-introduced a ban on oil and gas exploration within 12 miles of the Italian coastline. The ban had previously been introduced in 2010 but revoked in 2012. In 2017, UK company Rockhopper Exploration Plc, along with its Italian subsidiary, filed a claim for compensation alleging violations of the investor protection provisions of the Energy Charter Treaty. The claim concerned its interests in the Ombrina Mare oil rig, for which it was hoping to obtain a production concession from the Italian Government prior to the introduction of the ban. The company is claiming compensation both for funds spent and for anticipated profits, which may run to USD $200-300 million. The Arbitral Tribunal - constituted by Klaus Reichert SC as Chair, Charles Poncet and Pierre-Marie Dupuy - issued the award on 23 August 2022, finding that Italy's failure to grant a production concession for the Ombrina Mare oilfield breached the Energy Charter Treaty, amounting, inter alia, to an unlawful expropriation. Specifically, the Arbitral Tribunal ordered Italy to compensate Rockhopper of EUR 190 million plus interest at EURIBOR + 4%. On 28 October 2022, Italy submitted an application to the ICSID seeking to annul the Award under Article 52 of the ICSID Convention. On 2 June 2025, the Committee unanimously decided to annul the award on the basis of Poncet's failure to disclose a criminal conviction in the Milan courts that was quashed over 25 years ago.