LONDON - Zenith Energy Ltd. (LSE: ZEN; OSE: ZENA; OTC PINK: ZENAF), an international energy production and development company, has announced a favorable outcome in its arbitration against Entreprise Tunisienne d'Activités Pétrolières (ETAP), the Tunisian national oil company. The International Chamber of Commerce (ICC) in Paris has ordered ETAP to pay Zenith a sum of approximately $9.7 million.
The dispute arose from ETAP's failure to fulfill its contractual obligations to pay for oil produced and sold by Zenith's subsidiary, Ecumed Petroleum Zarzis Ltd (EPZ), in Tunisia. The ICC-1 Arbitration's final decision mandates ETAP to pay Zenith $6,139,539 in principal, about $2,700,000 in late payment interest, $395,000 for procedural costs, and $450,000 in legal fees. Late payment interests will accrue until the award is fully recovered.
This decision, as per the ICC rules, is final and cannot be appealed. It is also immediately enforceable, allowing Zenith to seek execution by any competent court.
Andrea Cattaneo, Zenith's Chief Executive Officer, expressed satisfaction with the outcome, stating it as formal recognition of the damages incurred due to the Tunisian authorities' actions. He emphasized the company's resilience in shouldering the costs of international arbitrations without external funding and the strength of their legal team.
Cattaneo also noted that Zenith's attention would now shift to the upcoming ICC-2 and ICSID arbitrations, where the company seeks further redress for damages in Tunisia related to oil production and development, with claims of $130 million and $503 million, respectively.
The final decision for ICC-2 is expected by the end of February 2025, with a decision from the ICSID Arbitration anticipated in late 2025 or early 2026.
Zenith Energy is engaged in energy production, exploration, and development in North Africa, the US, and Europe, focusing on developing revenue-generating assets and low-risk exploration in areas with existing production.
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