Zenith Energy Ltd (LSE: ZEN; OSE: ZENA; XSAT: ZENA SDR), the international energy production and development company, has disclosed that the Republic of Tunisia has again failed to honour its financial obligations within an ongoing ICSID arbitration valued at approximately US$573 million. The International Centre for Settlement of Investment Disputes has formally requested Tunisia to pay its outstanding share of arbitration costs, marking a significant procedural development. Zenith's UK subsidiaries are the claimants in the case, which is being pursued under the 1989 bilateral investment treaty between the United Kingdom and Tunisia. Investors in the multi-listed energy company are likely to monitor how this procedural impasse affects progress towards a final award.

Key Points

  • Zenith Energy Ltd (LSE: ZEN; OSE: ZENA; XSAT: ZENA SDR) is an independent energy company with assets in North Africa, the US, and Europe.
  • ICSID has again formally requested Tunisia to pay its outstanding share of costs in the approximately US$573 million arbitration case brought by Zenith's UK subsidiaries.
  • Tunisia has not contributed to any procedural costs since the arbitration commenced, with the claimants bearing these expenses throughout.
  • Investors should watch for further updates on arbitration progress and whether Tunisia's non-compliance materially delays proceedings towards a final award.

ICSID Formally Requests Tunisia to Pay Outstanding Arbitration Costs in US$573 Million Case

The announcement states that ICSID has once more formally requested the Republic of Tunisia to pay its outstanding share of the arbitration costs — costs that are ordinarily divided equally between both parties. This procedural step follows Tunisia's persistent failure to meet those obligations since the commencement of proceedings. According to the disclosure, ICSID's intervention is intended to ensure that Tunisia's non-compliance does not impede the arbitration's continued progression towards a final award. Zenith's UK subsidiaries have, to date, borne all shared procedural costs themselves, the company confirmed.

Zenith Characterises Tunisia's Conduct as Bad Faith and Deliberate Obstruction of Justice

Zenith Energy has characterised Tunisia's refusal to contribute to procedural costs as a deliberate, bad-faith attempt to obstruct the administration of justice and impede the claimants' pursuit of their legitimate treaty claims. The company states it does not view this as evidence of any financial inability on Tunisia's part, noting that as a sovereign state Tunisia retains the capacity to meet such obligations. The announcement adds that Tunisia continues to be represented by Curtis, Mallet-Prevost, Colt & Mosle LLP, a leading international law firm specialising in sovereign defence, which Zenith describes as making the non-compliance particularly surprising.

Bilateral Investment Treaty Obligations and Tunisia's Broader Commitments to International Investors Questioned

Zenith's disclosure states that Tunisia's conduct has raised serious questions regarding its commitment to honouring obligations under the 1989 UK–Tunisia bilateral investment treaty, as well as its broader obligations towards international investors. The claimants consider this behaviour part of an ongoing pattern of procedural abuse throughout the arbitration. Zenith is listed on three exchanges — the London Stock Exchange Main Market, the Euronext Growth of the Oslo Stock Exchange, and Sweden's Spotlight Stock Market — giving the dispute visibility across multiple investor communities. The company confirmed it will provide further updates as appropriate.