Further to the award rendered on 24 August 2022 against Italy in the ICSID Case No. ARB/17/14, in which an ICSID Arbitral Tribunal found that Italy had breached its obligations under the Energy Charter Treaty (ECT), the UK-based oil and gas company Rockhopper Exploration plc has provided an update on its arbitration with the Republic of Italy before the International Centre for Settlement of Investment Disputes (ICSID) in a press release dated 25 April 2023. The Arbitral Tribunal had ordered Italy to pay Rockhopper EUR 190 million in compensation, plus interest and arbitration costs.
As a result, on 28 October 2022, Italy lodged an application for annulment of the award and requested a provisional stay of enforcement of the award pursuant to Article 52(5) of the ICSID Convention. The ICSID Secretary General granted the provisional stay on 31 October 2022.
On 24 January 2023, after the constitution of the ad hoc Committee, the Italian Republic filed a request to continue the stay of enforcement.
Following a hearing on 6 March 2023, the ICSID ad hoc Committee issued on 24 April 2023 a decision on the continuation of the stay of enforcement of the Award. According to the company’s press release, the Committee ordered the parties to confer in order to mitigate the risk of non-recoupment by Italy with the anticipation of the stay being lifted. In this regard, the Committee suggested to use a first-class international bank outside the European Union, or such other means as the parties may agree for that purpose.
