Zenith Energy to seek annulment of ICC-2 arbitration award

LONDON - Zenith Energy Ltd. (LSE:ZEN; OSE:ZENA) announced Monday it is filing an application with the Swiss Federal Court to annul an arbitration award issued against its subsidiary in proceedings with the Republic of Tunisia.

The application follows a July 16 decision in which the International Chamber of Commerce (ICC) Arbitral Tribunal rejected all claims presented by Canadian North Africa Oil and Gas Limited (CNAOG), Zenith’s fully owned subsidiary. The company’s claims had reportedly amounted to approximately $130 million.

In its press release statement, Zenith cited "serious procedural irregularities" in the arbitration process as grounds for seeking annulment. The company stated it has identified "previously undisclosed connections between members of the Arbitral Tribunal and the Republic of Tunisia" following investigations conducted after receiving the decision.

Zenith also noted that the award contained "only six pages of reasoning" despite proceedings that lasted more than two years.

The company has engaged Charles Russell Speechlys Geneva to prepare and file the annulment application. According to Zenith, the Swiss Federal Court typically renders decisions on such applications within six to nine months from submission.

The ICC-2 decision contrasted with a previous arbitration outcome (ICC-1) that had reportedly been favorable to the company’s position.

Under Swiss law, parties may seek annulment of arbitral awards in limited circumstances, including cases involving procedural irregularities.

Zenith Energy describes itself as a revenue-generating energy company with production, exploration and development assets in North Africa, the US and Europe.

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