Zenith Energy Ltd on Friday saw shares rise after the company reported a ‘favourable’ decision in an ongoing lawsuit against the Tunisian government.
Zenith Energy shares were up 39% at 4.73 pence each on Friday afternoon in London.
Subsidiaries of the Aberdeen, Scotland-based oil and gas firm, with assets in Africa and Italy, initiated legal proceedings against Tunisia back in June 2023. Zenith claims Tunisia failed to comply with an investment treaty signed with Britain in 1989.
Zenith’s arbitrations against Tunisia are under review by the Arbitral Tribunal of the International Centre for Settlement of Investment Disputes. The company is claiming around $639.5 million in damages.
The tribunal on Friday dismissed ‘in very severe terms’ Tunisia’s request for bifurcation. The court has reserved the settlement of other issues for future decisions, though it ordered Zenith and Tunisia to agree on and communicate, by January 20, a shorter timeline for proceedings.
Zenith expects closure of the second arbitration hearing in the first-quarter of 2025, and the final award decision in summer 2025.
Chief Executive Officer Andrea Cattaneo commented: ‘Following the recent favourable decision achieved in the ICC-1 Arbitration, it is apparent that there is a linear and effective pathway by which Zenith and its shareholders can be compensated.’
Zenith in October blamed the Tunisian government for obstructing progress at the Sidi El Kilani and Ezzanaouia concessions, ‘to the material detriment’ of shareholders.
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