Rockhopper Exploration plc & Others v Republic of Italy

Harbour’s funding allows corporates to take the necessary steps to protect their shareholders’ interests.

Background

The Energy Charter Treaty (“ECT”) is designed to provide a stable platform for investments in the energy sector. One of the signatories to the ECT breached the terms of the treaty by delaying and ultimately refusing to grant a production concession to an oil field, resulting in financial loss to the claimant oil company. Based on legal and expert opinions, the company has been advised that it has strong prospects of recovering significant damages as a result of the alleged breaches.

Harbour’s funding

In a statement the oil company’s CEO highlighted that Harbour’s non-recourse funding of the arbitration allowed them to commence an arbitration to protect their investment at no extra cost to the company. In the event of success it retains a very material proportion of any award.

Outcome

The case is ongoing.