Zenith Energy Ltd. (“Zenith” or the “Company”) announced on Thursday, November 27, 2025, that Tunisian state entities have, according to the Company, carried out an unauthorised sale of 3,987 barrels of crude oil produced from the El Bibane concession and transferred to storage at MARETAP. The oil was originally moved in early 2024 after the Ministry of Industry, Mines and Energy ordered Zenith’s subsidiary Ecumed Petroleum Tunisia Ltd (“EPT”) to empty its tanks at El Bibane for alleged safety reasons, despite a prior inspection confirming the integrity of the storage facilities.
Since 2022, Zenith states that Tunisian authorities have repeatedly obstructed or delayed the sale of oil from the Robbana and El Bibane concessions, preventing EPT from monetizing production and forcing the Company to bear ongoing salaries, environmental compliance and technical upkeep. The total cost of maintaining the assets under these conditions is estimated at approximately USD 2M to date. Total production from the two concessions since 2022 amounts to 11,670 barrels, of which around 8,000 barrels remain in storage at Robbana, representing full on-site storage capacity.
Analyst Group’s View on the Tunisian Developments and Legal Implications
In Analyst Group’s view, the update provides a concrete illustration of how value has been systematically removed from Zenith’s Tunisian assets. Since 2022, EPT has had to fund all salaries, environmental compliance and technical maintenance for Robbana and El Bibane, at an estimated cumulative cost of roughly USD 2M, equivalent to approximately SEK 19M, while at the same time being prevented from selling its oil on normal commercial terms. Put simply, the Company is carrying the costs of the concessions, while Tunisian entities decide if and when the oil can be sold and, in the latest case, keep the entire revenue themselves. Zenith’s decision to keep the assets compliant and maintained, despite this, reflects both its legal obligations on the ground and the need to document ongoing damage and lost revenue as part of its arbitration claims.
Assuming an illustrative oil price assumption of around USD 80 per barrel, the 3,987 barrels reportedly sold without authorization correspond to a revenue equivalent of roughly USD 0.3M, while the full 11,670 barrels produced since 2022 equate to just under USD 1.0M in gross sales value. These amounts are small in the context of Zenith’s overall ICSID claim but are material at asset level and illustrate the erosion of expected economic returns from the Tunisian operations. The Company also notes that production volumes have declined over time and would have been materially higher had EPT been able to sell oil and receive payment on a regular basis, which further underlines the opportunity cost of the current situation.
From a legal standpoint, the events described are consistent with the broader pattern Zenith has invoked in its international arbitration processes: blocked offtake, non-payment for produced oil, and unilateral actions impacting shareholder rights in MARETAP, where Zenith holds 50 %. While this specific incident does not change the formal status of the ICSID or ICC proceedings, it provides an additional, concrete example of the type of behavior the Company argues amounts to expropriation and denial of fair treatment under the UK–Tunisia Bilateral Investment Treaty.
Background
Robbana and El Bibane are mature oil production concessions in Tunisia, held 100 % by EPT, a fully owned subsidiary of Zenith. Since 2022, Zenith reports that Tunisian authorities have repeatedly obstructed crude sales from these assets, resulting in stored volumes, foregone cash flows and an accumulated cost base of roughly USD 2M for staffing, environmental obligations and technical maintenance.
In early 2024, EPT was ordered by the Ministry of Industry, Mines and Energy to empty storage tanks at El Bibane and transfer all crude to MARETAP on alleged safety grounds, despite a safety inspection on April 1, 2024, having confirmed that the storage facilities did not pose environmental or safety risks. The 3,987 barrels moved to MARETAP were subsequently sold by ETAP without authorization, according to Zenith, and with no proceeds allocated to EPT.
MARETAP is the operating company for the previously terminated Ezzaouia concession and is owned 50/50 by EPZ (a Zenith subsidiary) and ETAP. Zenith has repeatedly stated that MARETAP’s management has failed to provide EPZ with standard financial, operational and corporate information, which the Company considers a serious breach of corporate governance and shareholder rights. These developments form part of the broader pattern of disputes between Zenith and Tunisian state-linked entities, which are currently being pursued through ICSID and ICC arbitration processes.
Valuation range: Bear 1.1 NOK, Base 3.2 NOK, and Bull 5.7 NOK.
