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Zenith Energy Ltd launches legal proceedings against Tunisia, seeking compensation of $48 Million

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Zenith Energy Ltd launches legal proceedings against Tunisia, seeking compensation of $48 Million

BNN | 7th June 2023

By Olalekan Adigun

Zenith Energy Ltd, an international energy firm, filed a lawsuit against Tunisia on Wednesday, claiming financial damages of at least $48 million.

The energy business, which is listed in London and Oslo, said it filed a request for arbitration against the country in a Washington DC center for the resolution of investment disputes, claiming the Tunisian government conducted a series of actions that were materially detrimental to its economic interests.

According to Zenith, these include measures that violate the provisions of the Sidi El Kilani and Ezzaouia licenses, as well as unreasonable impediments to the sale of produced oil.

Before beginning arbitration, the company stated that it made its best efforts to engage constructively with the relevant government bodies in good faith to resolve the issues, however these efforts have been unsuccessful thus far.

The corporation argues that the Tunisian authorities treated its investments in the Tunisian energy sector unfairly and violated contractual obligations. Zenith Energy claims that these activities have resulted in significant financial losses and wants compensation for the losses incurred.

Allegations of Unjust Treatment and Contractual Breaches
Zenith Energy Ltd’s legal proceedings against Tunisia revolve around allegations of unjust treatment and contractual breaches. The company argues that it has faced obstacles and unfavorable conditions in the Tunisian energy sector, hindering its operations and causing significant financial harm. Zenith Energy maintains that the actions of the Tunisian authorities are in violation of established business agreements, and as a result, it has suffered substantial losses. The legal action seeks to hold Tunisia accountable for its alleged breaches and secure compensation for the damages suffered.

Protecting Investments and Ensuring Fair Treatment
The legal proceedings initiated by Zenith Energy underscore the company’s commitment to protecting its investments and advocating for fair treatment in the Tunisian energy sector. As an international energy company, Zenith Energy expects transparency, adherence to contractual obligations, and a supportive business environment. By pursuing legal action, the company aims to address the alleged injustices it has encountered and to emphasize the importance of maintaining fair and equitable business practices. The proceedings also serve as a reminder to other investors of the significance of protecting their interests and seeking recourse when faced with adverse circumstances.

Zenith Energy Ltd’s decision to commence legal proceedings against Tunisia demonstrates its resolve to seek compensation for the financial losses it claims to have suffered. The case raises important questions about fair treatment, contractual obligations, and the protection of investments in the global energy industry.

 source: BNN