Tunisia recognises Zenith Energy’s oil concession ownership amid arbitration

Tunisia has formally recognised Canada’s Zenith Energy’s (LSE:ZEN) ownership of key oil production concessions, marking a significant development in the company’s ongoing arbitration case at the International Centre for Settlement of Investment Disputes (ICSID), Attaqa reported on April 15. 

In a statement, the Canadian firm said authorities confirmed that the onshore Robbana field and offshore El Bibane field are fully owned by its subsidiary, Ecumed Petroleum Tunisia. Zenith described the acknowledgement as a major step forward, particularly in light of previous disputes over the handling, storage and sale of oil from these assets.

The Tunisian government also confirmed that 3,987 barrels of oil produced since 2022 belong entirely to the subsidiary. However, Zenith said the crude remains unsold due to repeated administrative obstacles, preventing revenue generation.

Based on an assumed oil price of $100 per barrel, the recognised stock is valued at around $400,000, while an additional 8,000 barrels stored at the Robbana site are estimated at $800,000.

Zenith said the situation has had a material financial impact, with its subsidiary covering operational costs including salaries, maintenance and environmental compliance, totalling around $2mn. The company is seeking compensation of $639.7mn in relation to broader disputes over other concessions, while continuing legal action to protect its rights and recover losses.