International Arbitrations

ICC-1 Arbitration – Awarded amount – US$9.7M plus late payment interest

The ICC-1 Arbitration was commenced following ETAP’s failure to comply with its contractual obligations to pay for oil produced and sold by the Company’s fully owned subsidiary, Ecumed Petroleum Zarzis Ltd, in Tunisia.

On November 29, 2023, the Company announced that the ICC appointed Arbitral Tribunal for the arbitration claim launched against Entreprise Tunisienne d’Activités Pétrolières (“ETAP”), the national oil company of the Republic of Tunisia (the “ICC Arbitration”), had rejected ETAP’s request to include the Tunisian State as co-defendant and condemmed ETAP to pay approximately EUR 120,000 in costs.

On December 19, 2024, the Company announced that it had received an award in the amount of approximately US$9.7 million, including accrued late payment interest, following a decision by the Arbitral Tribunal of the ICC-1 Arbitration against ETAP.

The ICC-1 Arbitration award, in accordance with article 35.6 of the applicable ICC Rules, is final and may not be appealed by the parties. It is immediately enforceable and capable of being granted execution by any competent court.

CNAOG ICC Arbitration – Claimed amount US$130M

On December 6, 2023, the Company announced that its fully owned subsidiary, Canadian North Africa Oil and Gas Limited (“CNAOG”) had initiated an ICC arbitration case seated in Paris against the Republic of Tunisia (the “CNAOG ICC Arbitration”), in relation to the purchase of CNPC Tunisia.

Claim

The Company has formalised a claim for damages in the amount of US$130 million (the “Claimed Amount”) in connection with the CNAOG ICC Arbitration.

The Claimed Amount has recently been reassessed by third-party expert consultants in consideration of the following key factors:

• CNAOG’s lost production revenue and associated profitability, during a period of high energy prices, from the SLK Concession until its initial expiry in December 2022.
• The volume of crude oil produced from the Concession and allocated to and received by CNAOG upon the completion of the Acquisition.
• Failure to pay for oil production (unpaid invoices) by the Republic of Tunisia. 
• The value of the 45% interest in the renewal of the SLK Concession, representing a breach of CNAOG’s right to renew its previously existing 22.5% interest in SLK, as well as the 22.5% interest held by Kuwait Foreign Petroleum Exploration Company K.S.C.C, which relinquished its interest in the Concession before its initial expiry.

The CNAOG ICC Arbitration is distinct from the other arbitrations initiated by the Company, being the recently concluded ICC Arbitration against ETAP resulting an award in favour of Zenith for a total amount of approximately US$9.7 including accrued late payment interest, and the arbitration pending before the International Centre for Settlement of Investment Disputes in Washington DC (“ICSID Arbitration”), for a total claimed amount of US$503 million, announced on June 7, 2023, following various breaches of bilateral trade agreements committed by the Republic of Tunisia.

On July 16, 2025, the Company announced that the Arbitral Tribunal had issued a decision rejecting the entirety of the claims presented by CNAOG.

Under the rules of the ICC, a party may apply for annulment of an arbitral award for, inter alia, cases of procedural irregularities.

The Company confirms that its legal counsel identified and documented several serious procedural irregularities during ICC-2.

Following legal advice, the Company is proceeding with an application for annulment of the ICC-2 award before the Swiss Federal Supreme Court in Lausanne, Switzerland.

The Swiss Federal Supreme Court usually renders decisions on annulment applications within 6 to 9 months from submission.

ICSID Arbitration – Claimed amount approx. US$503M plus accrued interest

Arbitration before the International Centre for Settlement of Investment Disputes in Washington DC (the “ICSID Arbitration”) – for a total claimed amount of approximately US$503M.

Zenith’s fully owned subsidiaries (together, the “Investors“) have submitted a request for arbitration against the Republic of Tunisia before the ICSID with a total cumulative claimed amount of at least approximately US$503 million.  

The request for Arbitration before the ICSID was submitted in accordance with article 8 of the Agreement signed between the government of the United Kingdom of Great Britain and Northern Ireland and the government of the Tunisian Republic in 1989 for the Promotion and Protection of Investments.

The ICSID Arbitration was launched following a series of actions undertaken by the Tunisian government to the material detriment of the commercial interests of the Investors in the Republic of Tunisia, including, inter alia, unreasonable, and arbitrary obstructions in relation to the development of the Sidi El Kilani and Ezzaouia concessions.

More specifically, these include actions in contravention to, inter alia, the terms of the Sidi El Kilani and Ezzaouia licenses respectively, and unjustified obstructions for processing the sale of produced oil.

Prior to initiating the Arbitration, Zenith and its subsidiaries had, in good faith, applied their best efforts towards engaging constructively with the relevant bodies in the Republic of Tunisia to address these matters. However, in view of the unsuccessful nature of these efforts to date, the Investors have been compelled, to safeguard their commercial interests and legal rights, to launch the ICSID Arbitration.