LONDON: Zenith Energy Ltd. said Tuesday the Republic of Tunisia has formally recognized its subsidiary’s ownership of two oil production concessions, marking a significant step in ongoing arbitration proceedings before the International Centre for Settlement of Investment Disputes.
The concessions, Robbana and El Bibane, are held by Ecumed Petroleum Tunisia Ltd., Zenith’s fully owned subsidiary. Tunisian authorities also confirmed that about 3,987 barrels of oil produced since 2022 belong to the company. Zenith said the oil, valued at roughly $400,000 at $100 per barrel, had remained unsold due to what it described as repeated obstructions by Tunisian officials.
In addition, Zenith noted that about 8,000 barrels of oil remain stored at Robbana, worth an estimated $800,000. The company said the inability to monetize production underscores the economic impact of the dispute.
The arbitration follows earlier disputes over oil handling and sales, including barrels transferred to MARETAP that Zenith said were sold without authorization and without proceeds remitted to its subsidiary.
Zenith also reported that the Robbana concession has been subject to extensive vandalism and theft, leaving the site non-operational for at least a year. The company said critical equipment was stolen or damaged, requiring significant rehabilitation before production can resume.
Chief Executive Officer Andrea Cattaneo called Tunisia’s recognition of the concessions and oil inventory “a highly significant development” in the arbitration process. He added that the vandalism raised “serious concerns” and further demonstrated the damages suffered by Zenith’s subsidiaries.
Zenith said its claimant companies remain committed to pursuing all legal remedies through ICSID to protect their rights and seek compensation for what they allege are unlawful obstructions and breaches of treaty obligations by Tunisia.