Zenith Energy Ltd. (“Zenith” or the “Company”) announced on Monday, October 14, 2025, that the Swiss Federal Supreme Court in Lausanne has formally accepted the annulment application submitted by its fully owned subsidiary, Canadian North Africa Oil and Gas Limited (“CNAOG”), in relation to the ICC-2 arbitration award. The Company also confirmed payment of the procedural fees amounting to CHF 200,000. The annulment request, filed on September 15, 2025, concerns the complete dismissal of a USD 130 million claim originally filed by CNAOG against the Republic of Tunisia.
The application is based on Swiss arbitration law, which allows for annulment in cases of serious procedural irregularities. Following post-award investigations, Zenith disclosed previously undisclosed connections between the chairman of the arbitral tribunal, Cecilia Carrara, and the lawyers officially representing the Tunisian state. These findings, combined with documented procedural flaws, form the legal foundation of the annulment case.
Analyst Group’s View on the Annulment Application of the ICC-2 Award
The acceptance of Zenith’s annulment application marks a procedural milestone in the Company’s effort to challenge the ICC-2 ruling. While the dismissal of the USD 130M claim initially represented a material legal and financial setback, the admissibility of the application now enables a formal review process, which may result in the case being reheard by a newly constituted tribunal. As previously commented, the basis for the annulment, undisclosed conflicts of interest and due process violations, constitutes serious deviations from international arbitration standards. The Swiss Federal Court applies a narrow scope for annulment, typically focusing only on procedural grounds, but past precedent confirms that conflicts undermining tribunal impartiality are among the strongest legal arguments within that framework.
The case is being led by Charles Russell Speechlys Geneva, with legal counsel Pierre Bydzovsky, who brings experience in complex arbitration matters before Swiss courts. The typical timeframe for a decision ranges between 6–9 months, during which the court will evaluate both procedural irregularities and potential breaches of due process.
While the outcome remains binary, Analyst Group views the acceptance of the application as a positive development that introduces a credible legal path for restoring part or all of the original claim. Should the Court decide in Zenith’s favor, the case may be reheard before a new arbitral panel, potentially unlocking significant legal upside.
Analyst Group’s View on Zenith as an Investment
Zenith has a long history of well-timed acquisitions at attractive valuations, as demonstrated by the acquisition of oil assets in Tunisia during the COVID-19 period. Core operations remain resilient, supported by profitable gas-to-electricity and solar production in Italy, where Zenith has been active since the year 2010. The Company currently holds a diversified solar pipeline totaling 74.5 MWp, and Analyst Group maintains the view that the portfolio will exceed 100 MWp before year-end 2025, supported by ongoing acquisitions.
Beyond core operations, the Company remains engaged in legal processes that could materially impact long-term valuation. The ICC-1 arbitration concluded successfully in December 2024 with a USD 9.7M award. While ICC-2 resulted in a full dismissal of USD 130M in claims, Zenith has now submitted an annulment application, citing serious procedural irregularities and newly discovered connections between tribunal members and the Tunisian state. The broader and most strategically significant legal process remains the ICSID arbitration, where Zenith is pursuing USD 572.65M in damages under the UK–Tunisia Bilateral Investment Treaty. The case is now entering its final phase, with hearings scheduled for April 2026. Analyst Group estimates a 68% probability of a favorable outcome based on historical data and legal precedent.
With a stable operational base in Italy combined with legal arbitration processes that could unlock substantial upside, Zenith presents a risk–reward profile where litigation outcomes may act as significant value catalysts.
