REG - Zenith Energy Ltd - Update on Arbitrations against Republic of Tunisia

Zenith EnergyAnnouncement

03/10/2024 07:00

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RNS Number : 7362G  Zenith Energy Ltd  03 October 2024

October 3, 2024

 

ZENITH ENERGY LTD.

 

("Zenith" or the "Company")

 

Update on Arbitrations against Republic of Tunisia

 

Zenith Energy Ltd. ("Zenith" or the "Company") (LSE: ZEN; OSE: ZENA; OTCQB:
ZENAF), the listed international energy production and development company,
is pleased to provide an update regarding the international arbitration
proceedings it has initiated against the Republic of Tunisia and ETAP, the
national company of the Republic of Tunisia.

 

International Centre for Settlement of Investment Disputes ("ICSID")
arbitration against the Republic of Tunisia held in Washington, D.C. (the
"ICSID Arbitration").

 

Zenith Energy Africa Ltd. ("ZEAL"), Zenith Overseas Assets Ltd. ("ZOAL")
and Compagnie du Désert Ltd. ("CDD"), all fully owned subsidiaries of Zenith
(collectively, the "Investors"), submitted claims in June 2023 against
the Republic of Tunisia, brought under the United Kingdom - Tunisia
bilateral investment treaty under the auspices of the ICSID.

 

The ICSID Arbitration was launched following a series of actions undertaken
by the Republic of Tunisia to the material detriment of Zenith's
subsidiaries including, inter alia, unreasonable and arbitrary obstructions
in relation, primarily, to the development of the Sidi El Kilani and Ezzaouia
concessions.

 

The language of the ICSID Arbitration is French. As a result, many of the
legal advisors and expert consultants appointed by Zenith are based in Paris,
France.

 

In consideration of the additional breaches committed by the Republic of
Tunisia to the material detriment of the Investors since the commencement of
the ICSID Arbitration, the Investors have appointed:

 

·      Organisation Conseil Audit ("OCA"), an internationally recognised
accountancy firm specialised in the provision of quantum analysis expertise in
connection with arbitrations, to calculate a revised claim amount to be
submitted as part of the ICSID Arbitration.

 

·      Chapman Hydrogen and Petroleum Engineering Ltd. ("Chapman") a
professional engineering and reserves evaluating firm based in Calgary, the
epicenter of the energy industry in Canada, with more than 50 years of
comprehensive experience in the oil and gas industry.

 

OCA and Chapman have determined a revised amount of US$503 million as the
total claimed amount of the ICSID Arbitration, reflecting the damages
sustained by the Investors (the "Claimed Amount").

 

The hearings for the ICSID Arbitration are expected to take place during
December 2025.

 

The Investors are represented by Simon Le Wita, a Paris-based Partner of
Charles Russell Speechlys, an internationally recognised law firm, and Clay
Arbitration, an independent boutique law firm specialised in arbitrations
founded by Professor Thomas Clay, a renowned academic and lawyer who is
currently Professor at Sorbonne Law School, where he teaches Arbitration Law
and Alternative Dispute Resolution, as an additional co-counsel to further
strengthen Zenith's legal team.

 

The Investors were informed on March 18, 2024 that Anima Dispute Resolution,
an international law firm specialised in international arbitrations appointed
by the Republic of Tunisia as specialist counsel for the ICSID Arbitration,
had resigned from their mandate with immediate effect.

 

ICC Arbitration proceedings against ETAP (the "ICC 1 Arbitration")

 

The Company can confirm that the final hearings of the ICC 1 Arbitration
initiated against Entreprise Tunisienne d'Activités Pétrolières ("ETAP"),
the national oil company of the Republic of Tunisia, were held in Paris on
April 26 and 27, 2024.

 

The decision of the ICC 1 Arbitration is expected to be published by December
2024.

 

ICC Arbitration for SLK against the Republic of Tunisia - ("ICC 2
Arbitration")

 

The Company has recently filed additional pleadings and supporting documents
in connection with the ongoing ICC 2 Arbitration against the Republic of
Tunisia.

 

Zenith's fully owned subsidiary, Canadian North Africa Oil and Gas
Limited ("CNAOG") initiated ICC (International Chamber of Commerce)
arbitration proceedings against the Republic of Tunisia, as announced in
December 2023.

 

The originally claimed amount, US$85.8 million, has been increased to US$130
million following calculations performed by the Company's advisers,
specifically Chapman, regarding the quantifiable damages sustained by CNAOG.
 

 

A decision, resulting in a possible award favourable to CNAOG, is expected to
be made during the first quarter of 2025.

 

Andrea Cattaneo, Chief Executive Officer, commented:

 

"We are making steady progress on all fronts in the arbitrations commenced
against the Republic of Tunisia. The total cumulative amount claimed across
the three pending arbitrations now stands at US$639.7 million, evidencing the
scale of the damages inflicted upon Zenith and its shareholders by the
Tunisian authorities.

 

We are hopeful that the outcome of the ICC 1 arbitration, due by the close of
the year, will provide concrete confirmation of the validity of our position
as we direct our efforts towards the much larger ICC 2 and ICSID arbitrations,
 to be concluded in 2025 and 2026 respectively."

 

Further Information:

 Zenith Energy Ltd

Andrea Cattaneo, Chief Executive Officer  Tel: +1 (587) 315 1279

                                            E:       info@zenithenergy.ca (mailto:info@zenithenergy.ca)

Notes to Editors:

Zenith Energy Ltd. is a revenue generating, independent energy company with
energy production, exploration and development assets in North Africa, the US
and Europe. The Company is listed on the London Stock Exchange Main Market
(LSE: ZEN), the Euronext Growth of the Oslo Stock Exchange (OSE: ZENA) and
the Venture Market of the OTCQB (OTCQB: ZENAF).

Zenith's strategic focus is on pursuing development opportunities through the
development of proven revenue generating energy production assets, as well as
low-risk exploration activities in assets with existing production.

 

For more information, please visit:  www.zenithenergy.ca
(http://www.zenithenergy.ca)

Twitter: @zenithenergyltd

LinkedIn:  https://bit.ly/3A5PRJb (https://bit.ly/3A5PRJb)

 

Market Abuse Regulation (MAR) Disclosure

 

The information contained within this announcement is deemed by the Company to
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(EU) No. 596/2014 as it forms part of UK domestic law by virtue of
the European Union (Withdrawal) Act 2018 ("MAR"). Upon the publication of
this announcement via a Regulatory Information Service ("RIS"), this inside
information is now considered to be in the public domain.

 

 

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