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Zenith Energy Ltd on Monday said it was ‘outraged’ by a tribunal ruling which rejected its North African subsidiary’s $103 million claim against the Tunisian government. The Calgary, Canada-based oil company has interests in Italy, Tunisia and the US. Back in December 2023, Canadian North Africa Oil & Gas Ltd, Zenith’s wholly-owned subsidiary, filed for around $639.5 million in total damages from the Republic of Tunisia. Zenith in 2024 alleged that the ‘the arbitrary behaviour of the Tunisian authorities’ lead to ‘unexplained obstructions in facilitating crude oil liftings’ and lost production revenue at the Sidi El Kilani concession. The latest decision relates to the second of three arbitration cases against Tunisia. The $103 million amount includes the value of a 45% stake in the SLK project, comprised of 22.5% already owned by Zenith’s subsidiary, and 22.5% previously relinquished by the Kuwait Foreign Petroleum Exploration Co. Zenith was optimistic at the end of 2024, when it received a ‘favourable’ decision on the first arbitration, ICC-1, which ordered Tunisia to pay $9.7 million. However, the ICC-2 ruling has rejected ‘the entirety of the claims’ made by Zenith’s North African subsidiary. ‘We are outraged by the decision rendered by the arbitral tribunal in ICC-2,’ commented Chief Executive Andrea Cattaneo on Monday. ‘Our position has always been - and remains - that [Zenith] is entitled to substantial compensation with respect to the SLK concession. The failure to recognise the illegitimate conduct of the Tunisian authorities, following the favourable precedent set in ICC-1, is nothing short of a travesty.’ The company’s legal counsel has claimed that the ICC-2 hearing involved ‘repeated and serious procedural irregularities’. Cattaneo said: ‘The company is now considering all legal avenues.’ Zenith will apply for an annulment award from the Swiss Federal Supreme Court. If received, Zenith plans to restart the case. Meanwhile, Zenith is preparing to submit its third arbitration by September, in pursuit of $503 million, through the International Centre for the Settlement of Investment Disputes. The ICC-3 hearing is scheduled to take place in the second quarter of 2026. Zenith shares were up 20% to 4.33 pence midday Monday in London. Copyright 2025 Alliance News Ltd. All Rights Reserved.
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