Investor-State dispute settlement

[GrahamPlatt]

Didn’t know quite where to post this.

https://www.theguardian.com/business/20 ... k-oil-firm

It’s Rockhopper, suing Italy for a sum that’s some six times its MCap (so might be a subject worthy of the Oil & Gas board, but has wider implication).

I had thought that fear of being at the mercy of shenanigans like this were a good part of the reluctance of some parties to agree the Transatlantic Trade and Investment Partnership (TTIP), but see that the mechanism is already well established, and that the UK is perhaps the country carrying the largest risk. It’s not going to help our efforts vs. climate change one bit.

[UncleEbenezer]

Didn’t know quite where to post this.

https://www.theguardian.com/business/20 ... k-oil-firm

It’s Rockhopper, suing Italy for a sum that’s some six times its MCap (so might be a subject worthy of the Oil & Gas board, but has wider implication).

I had thought that fear of being at the mercy of shenanigans like this were a good part of the reluctance of some parties to agree the Transatlantic Trade and Investment Partnership (TTIP), but see that the mechanism is already well established, and that the UK is perhaps the country carrying the largest risk. It’s not going to help our efforts vs. climate change one bit.

The TTIP was more about food standards: the very same hormone-and-antibiotic-pumped beef that the EU needs a border to exclude.

But yes, a US food producer might in the not-too-distant future have a case against a UK supermarket engaging in backdoor restraint of trade. Like, for instance, "red tractor" labelling.

[scrumpyjack]

Well if Italy sell a licence to Rockhopper to drill for oil and then turn round and say you can't drill for oil, it is not unreasonable that Rockhopper asks for compensation! Even the Guardian might be able to see that.

[GrahamPlatt]

Well if Italy sell a licence to Rockhopper to drill for oil and then turn round and say you can't drill for oil, it is not unreasonable that Rockhopper asks for compensation! Even the Guardian might be able to see that.

Yes, as in here’s your money back, and we will also reimburse you the amount you’ve spent on the development of the prospect. But to try asking for loss of anticipated future profits is .. a bit rich. Especially given the very uncertain nature of such wildcat assets.

[scrumpyjack]

Well if Italy sell a licence to Rockhopper to drill for oil and then turn round and say you can't drill for oil, it is not unreasonable that Rockhopper asks for compensation! Even the Guardian might be able to see that.

Yes, as in here’s your money back, and we will also reimburse you the amount you’ve spent on the development of the prospect. But to try asking for loss of anticipated future profits is .. a bit rich. Especially given the very uncertain nature of such wildcat assets.

Well it's sensible in a legal action for claim for a lot to start with so you can settle on a reasonable figure and no doubt the law sets out what is and is not recoverable.

[GrahamPlatt]

Well if Italy sell a licence to Rockhopper to drill for oil and then turn round and say you can't drill for oil, it is not unreasonable that Rockhopper asks for compensation! Even the Guardian might be able to see that.

Yes, as in here’s your money back, and we will also reimburse you the amount you’ve spent on the development of the prospect. But to try asking for loss of anticipated future profits is .. a bit rich. Especially given the very uncertain nature of such wildcat assets.

Well it's sensible in a legal action for claim for a lot to start with so you can settle on a reasonable figure and no doubt the law sets out what is and is not recoverable.

Depends on jurisdiction I’d say. BP/Macondo?