TIDMGBP
RNS Number : 4158Y
Global Petroleum Ltd
14 January 2022
14 January 2022
Global Petroleum Limited
("Global" or "the Company")
Italian Permit Applications - European Court Judgement
Global Petroleum Limited (AIM: GBP) is pleased to announce that
the European Court has found, in effect, that the Company's four
Permit Applications ('Permit Applications') offshore Italy in the
Southern Adriatic do not contravene EU law.
The Company announced in July 2019 that the Region of Puglia had
appealed to the Council of State, the highest level of appeal in
Italy, against the judgements at first instance of the
Administrative Tribunal in Rome and/or the President of the
Republic in relation to the Permit Applications. These judgements
related to the four Environmental Decrees (one for each
Application) issued in favour of Global by the relevant Ministerial
Authorities at different times.
The Company subsequently announced, in February 2020, that the
Council of State had suspended the proceedings before it and
referred the matter to the European Court ('Court'), requesting the
Court to rule whether the four Permit Applications contravened a
relevant EU Directive (Directive 94/22) relating to the maximum
permissible size of individual permits, in particular having regard
to the fact that the Permit Applications are contiguous.
According to the Court, "national legislation which lays down an
upper limit on the size of the area that may be covered by a
hydrocarbon exploration permit, but does not expressly prohibit
granting the same operator more than one permit for adjacent areas
that together cover an area exceeding that limit, conforms to EU
law.
However, the Court makes that finding subject to two conditions:
first, such a grant must be capable of ensuring the best possible
exercise of the exploration activity concerned, from both a
technical and economic point of view, and the achievement of the
objectives pursued by Directive 94/22. Second, in the context of
the environmental impact assessment, the national legislation must
take into account the cumulative effect of projects likely to have
significant effects on the environment, presented by that operator
in its applications for hydrocarbon exploration permits."
Accordingly, the Company intends to consult with its advisers
regarding the best way forward.
.
The summary judgement of the Court may be read here:
https://curia.europa.eu/jcms/upload/docs/application/pdf/2022-01/cp220003en.pdf
In the wider context, the moratorium on hydrocarbon exploration
activities in Italy expired in the latter part of 2021. Global is
advised that the Commission appointed by the Government in parallel
with the moratorium has completed its deliberations and that the
Hydrocarbon Plan for future exploration and development (known as
PITESAI) will be published shortly. The Company will make a further
announcement thereafter.
For further information, please visit
http://www.globalpetroleum.com.au/ or contact:
+44 (0) 20 3 875
Global Petroleum Limited 9255
Peter Hill, Managing Director & CEO
Andrew Draffin, Company Secretary
Panmure Gordon (UK) Limited (Nominated Adviser +44 (0) 20 7886
& Joint Broker) 2500
John Prior / Ailsa MacMaster
Corporate Broking: Hugh Rich
ETX Capital (Joint Broker) +44 (0) 20 7392
Thomas Smith 1568
Tavistock (Financial PR & IR) +44 (0) 20 7920
Simon Hudson / Nick Elwes 3150
Background
In August 2013, the Company submitted an application, proposed
work programme and budget to the Italian Ministry of Economic
Development for four exploration areas offshore Italy in the
Southern Adriatic (the "Permit Applications") - d80 F.R-GP, d81
F.R-GP, d82 F.R-GP and d83 F.R-GP. The Company's four Application
Blocks are contiguous with the Italian median lines abutting
Croatia, Montenegro and Albania respectively (Figure 1 below).
As previously reported, various local authorities and interest
groups appealed to either the Rome Tribunal or the President of the
Republic against the Environmental Decrees in relation to the
applications for the four areas. Publication of Environmental
Decrees is the final administrative stage before grant of the
Permits. All first instance appeals made to the Rome Tribunal and
to the President of the Republic were subsequently adjudicated in
Global's favour.
However, Puglia, as the Italian region principally interested,
made additional appeals to the Council of State (the highest level
of appeal in Italy) against the judgements of the Rome Tribunal.
The subsequent appeals were heard by the Council of State in
January 2020, and in February 2020 the Council of State issued a
judgement. Essentially, the Council of State suspended the
proceedings before it and referred the matter to the European
Court, requesting the Court to rule whether the four Permit
Applications contravene a relevant EU Directive relating to the
maximum permissible size of individual permits, in particular
having regard to the fact that the four permit applications are
contiguous. The town of Margherita di Savoia also appealed to the
Council of State against the Rome Tribunal judgments previously
made against it. The Council of State has deferred the Hearing of
this appeal pending the judgement of the European Court with
respect to the Puglia appeal.
The European Court's Judgement finds that "Directive 94/22
provides that the extent of the areas covered by an authorisation
and the duration of the authorisation must be limited with a view
to preventing the reservation to a single entity of an unjustified
exclusive right. According to the Court, however, that same
directive does not lay down any limitation as regards the number of
authorisations that may be issued and/or the number of entities to
which authorisations may be issued."
According to the Court "national legislation which lays down an
upper limit on the size of the area that may be covered by a
hydrocarbon exploration permit, but does not expressly prohibit
granting the same operator more than one permit for adjacent areas
that together cover an area exceeding that limit, conforms to EU
law.
However, the Court makes that finding subject to two conditions:
first, such a grant must be capable of ensuring the best possible
exercise of the exploration activity concerned, from both a
technical and economic point of view, and the achievement of the
objectives pursued by Directive 94/22. Second, in the context of
the environmental impact assessment, the national legislation must
take into account the cumulative effect of projects likely to have
significant effects on the environment, presented by that operator
in its applications for hydrocarbon exploration permits."
In the wider context for hydrocarbon exploration in Italy, in
February 2019 the Italian Parliament passed legislation suspending
all hydrocarbon exploration activities - including permit
applications - for a period of 18 months. Under the legislation, a
Government appointed Commission was to review all onshore and
offshore areas for the stated purpose of evaluating their
suitability for hydrocarbon exploration and development in the
future. In doing so, the suitability of such activities in the
context of social, industrial, urban, water source and
environmental factors were to be evaluated. In offshore areas,
suitability would additionally be assessed having regard to the
impact of such activity on the littoral environment, marine
ecosystems and shipping routes. Following the 18 month evaluation
period, the intention was that a Hydrocarbon Plan would be
activated, setting out a strategy for future exploration and
development.
Following the expiry of its initial 18 month term, the
moratorium has been extended twice. The latest, and final,
extension reportedly expired on 30 September 2021. The Company is
advised that the Commission has completed its deliberations and
that it is expected to publish the Hydrocarbon Plan (known as the
PITESAI) shortly.
The southern Adriatic and adjacent areas continue to be the
focus of industry activity. Most notably, in Montenegro, offshore
concessions were awarded in 2016/2017 to Energean and Eni/Novatek
(the latter just 35 km from the nearest of the Permit
Applications). Eni/Novatek reportedly committed nearly $100 million
on exploration on these permits, where an exploration well is
currently underway with results expected shortly.
Energean acquired 3D seismic data on its blocks in 2019. In
Albania, Shell continues to evaluate its Shpiragu discovery after
the Shpiragu -4 well tested at several thousand barrels of oil per
day in 2019.
http://www.rns-pdf.londonstockexchange.com/rns/4158Y_1-2022-1-13.pdf
FIGURE 1 - Map of Global Petroleum's 4 Permit Applications
offshore Italy in Southern Adriatic
-ends-
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