(CJEU) Judgment of the Court of Justice in Case C-110/20
Date of article: 13/01/2022
Daily News of: 17/01/2022
Country: EUROPE
Author: Court of Justice of the European Union
Article language: en
A Member State may, within the geographical limits set by it, grant several licenses to the same operator for the prospection, exploration and production of hydrocarbons, such as petrol and natural gas, for adjacent areas, provided that it ensures non-discriminatory access to those activities for all operators and assesses the cumulative effect of projects likely to have significant effects on the environment.
These requirements follow from the relevant EU legislation on public procurement rules and on protection of the environment. In 2013, Global Petroleum, an Australian company operating in the offshore hydrocarbons sector, submitted four applications to the Italian authorities seeking four hydrocarbon exploration permits for adjacent areas situated in the Adriatic Sea, off the coast of the Puglia region (Italy). Each of those applications relate to an area of slightly less than 750 km2 . Under Italian legislation, the area covered by a permit may not exceed 750 km2 .
In 2016 and 2017, the Italian authorities found the four exploration projects presented by Global Petroleum to be compatible with the environment. Regione Puglia (the Region of Puglia) brought actions before the Italian courts seeking, ultimately, to prevent Global Petroleum from exploring approximately 3000 km2 of seabed, in total. It claims that, to prevent the law being ‘circumvented’, the 750 km2 limit should apply not only to each permit, but also to each operator.