Energy Giant Zenith Energy Set to Field Annulment Application Following Tribunal Loss over Tunisian Oil Concession

In a fascinating turn of international business drama, Zenith Energy, a significant player in global energy production, is set to lock horns with an Arbitral Tribunal over a decision regarding an oil concession in Tunisia. The decision, which didn’t favour Zenith’s Canadian subsidiary, Canadian North Africa Oil and Gas Limited (CNAOG), is soon to face rigorous legal scrutiny.

The tribunal dismissed all claims presented by CNAOG related to the Sidi El Kilani concession in Tunisia, sparking outrage from the top brass of Zenith Energy. Not taking the decision lightly, the company has announced plans to appeal the ruling, citing ‘serious procedural irregularities’ during the arbitration process.

The appeal, setting a possible landmark precedent if successful, will see Zenith Energy’s legal team present their case before the Swiss Federal Supreme Court in Lausanne, Switzerland. The Swiss court usually renders decisions on such annulment applications within a 6 to 9 month timeframe.

The grievance includes a considerable loss in production revenue and associated profit during a period of booming energy prices until the term of their concession in December 2022. Furthermore, the company claimed a breach of their rights regarding renewal of their interest in the concession.

The initial claims by Zenith’s subsidiary stood at an impressive figure of about US$130 million, a sum calculated with the assistance of third-party experts. Andrea Cattaneo, Zenith’s CEO, vocalized the company’s disappointment at the tribunal’s ruling. He firmly maintains that CNAOG should receive sizeable compensation in relation to the disputed oil concession.