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Skrivet av Redaktionen  • 30 december, 2024 02:05

Intervjun:

Andrea Cattaneo (CEO) Zenith Energy Ltd


Andrea Cattaneo (CEO) Zenith Energy Ltd

This is an interview in a paid collaboration.

 

Introduction: The price of oil has, to say the least, exhibited significant volatility in recent years, taking companies in this sector on a rollercoaster ride in the financial arena. Today, we have the opportunity to meet Andrea Cattaneo, the CEO of Zenith Energy, a Canadian company operating in the oil sector and listed on both the London Stock Exchange and Oslo Børs. In this interview, Andrea Cattaneo will share insights about Zenith Energy and its business model, a bit about himself, how the company invested in assets in Tunisia during the COVID-19 pandemic when everyone else was selling in panic, as well as where the company stands today and where it is headed!

 

1: What is Zenith Energy’s business concept? 

Andrea Cattaneo (CEO) Zenith Energy Ltd: Zenith has developed a concept since 2010. It is to acquire an oil & gas producing property sold by a large oil company, which has lost interests in that property for a variety of accidental reasons (small dimension of the upside, friction among shareholders of the field, etc etc.).

The principle is that what is not good for the like of Exxon, can be instead very good for an independent company like us. In doing so we became operator, a magic word in our business which means somebody with the technical and financial capabilities to operate a field producing oil & gas.

 

2: Could you tell us a little about yourself? 

Andrea Cattaneo (CEO) Zenith Energy Ltd: I am ex banker.  I specialized in loans to emerging markets. One, at that time a very poor country, Vietnam, required financing for making a factory of jute bags. Being the third poorest country in the world, no bank wanted to entertain this opportunity. With some efforts I achieved the goal to deliver this loan.

The Vietnamese government was very pleased and they offered me to trade their newly started production of crude oil. I changed my business and I left banking to open a trading company of commodities in Hong Kong.

It is worth noticing that with the jute bags produced by “ my “ factory three years later, packing properly their rice, Vietnam could become the third largest exporter of rice in Asia. A great satisfaction for me.

Then I continued all my life to be an entrepreneur, assisting emerging countries.

 

3: Currently, the company’s focus revolves around three ongoing disputes in Tunisia. Could you elaborate on these three assets? What type of assets are they? In what year were they acquired, and why have these three assets ended up in international arbitration? 

Andrea Cattaneo (CEO) Zenith Energy Ltd: In the period 2010 to 2019, we perfect our capabilities to managed oil & gas properties. In 2020 we started to buy 3 companies in Tunisia, which we materialized during COVID. Life during COVID was slower, but some business went on.

But it was the question to risk to get sick far from home and unable to return home, possibly dying overseas. Zenith management had this courage and spent most of 2020 and 2021 in Africa. We bought these three companies of which, the first contained one field, Ezzaouia, the second another field, SLK, and the third 2 fields , El Bibane and Robbana, or a total of 4 fields.

In February 2021 , we rescued the company #1 and the company # 3 which were short of cash, injecting cash and initiating immediately a new development program. Indeed, the authority were initially very welcoming.

On our side we were very committed as well socially. During COVID we donated respirators for COVID patients for the hospital of Zarzis. We became subsequently the main sponsor of the Football team Zarzis, playing in the first division of Tunisian tournament.

Zarzis is the area where company #1 and #3 operate.


Zenith became the main sponsor for Tunisian football team Zarzis
Andrea Cattaneo with Tunisian football team Zarzis 

 

When Russia invaded Ukraine oil price went above 110 USD. Two months after the Tunisian authorities started the illegal steps to sequestrate all our assets. The first illegal step was made against company# 1 by ETAP’ (which is the national Oil Company of Tunisia ). It was non-payment for oil produced and sold by us through ETAP in the international market.

In addition, since then, they never paid any unpaid invoices for oil production sold domestically in Tunisia to ETAP. Then they proceeded to sequestrate company #2.

For companies 1 & 2, the license of the fields has been passed to themselves, illegally.

Company #3 was never formally sequestrated but they made our business life such that we can only spend, maintain employment and production, but they take the oil we produce, and they never pay for it. So not a business, it is a punishment.

 

4:  What is the total amount you have claimed as compensation for these violations?

Andrea Cattaneo (CEO) Zenith Energy Ltd: The total amount of claims in the three arbitrations is 639.5 MUSD. In addition, the first sentence imposed to the Tunisian to pay extra 3 MUSD for reimbursement of costs.

 

5: Can a republic like Tunisia simply confiscate assets in this manner? If not, why not—are there any trade agreements that govern such actions? 

Andrea Cattaneo (CEO) Zenith Energy Ltd: No, a Republic in the middle of the Mediterranean Sea, center of history since millennia cannot confiscate assets like that. Some representatives of the Tunisian state have instead done it, contravening international laws and more precisely the Treaty between Tunisia and investor. This is the focus of Arbitration 3#

 

6: When can we expect the arbitration tribunal to issue decisions on these three disputes? 

Andrea Cattaneo (CEO) Zenith Energy Ltd:

ICC 1: Done, we won

ICC2: Summer 2025

ICSID 1: 1st quarter or 2nd quarter 2025

 

7:  Ok, so the international arbitration tribunal has ruled in your favor in the first arbitration, and Zenith is set to be compensated with USD 9.7 million. When do you anticipate these funds will be transferred to you? 

Andrea Cattaneo (CEO) Zenith Energy Ltd: Transfer: It is a possibility that Tunisia pays to keep international respect. Tunisia has always paid its arbitrations. Our way: we have a more simple and safe method in term of timing: to sequestrate financial or real estate assets or cargo of goods or crude oil , or airplanes, belonging to Tunisia or to Etap.

 

8: What factors support the likelihood of Zenith winning in disputes two and three? 

Andrea Cattaneo (CEO) Zenith Energy Ltd: The fact that they used the same method for making crimes in case 1, 2 and 3. All copy-paste, without fantasy. These breaches have been sentenced in full in ICC1. Arbitration courts # 2 & #3, similarly composed of high caliber arbitrators, will most likely issue a similar sentence according to our assessment.

 

9: Hypothetically, if Zenith wins one of the two remaining disputes—or both—how does the company plan to allocate these funds? 

Andrea Cattaneo (CEO) Zenith Energy Ltd: I wish to reassure investors of the bonafide of our intentions. We shall keep in mind as well the victory in ICC 1 which we have in our hands. As soon as we receive the money in full from the sequestration process/es under the Award received for ICC1, the Board may consider, under the advice of our securities lawyers and investment bankers, ways to distribute an initial payout  to our shareholders.

This principle though will be considered and discussed only when we receive this cash. Now we are busy with the sequestration process. We note from the comments of shareholders that different techniques have been used by other listed companies facing this task, and we will have to learn the best option.

Should we also win the second and third arbitrations, the same process of investigating and considering how to make a proper payout to our shareholders will be started. This strategy is obvious and natural in front of such important payouts, but is a pure indication, not binding and still informal. Shareholders are invited not to rely on that for their decisions to invest till a proper regulatory announcement, prepared with financial and legal advisors is made.

Nevertheless, we wish to create confidence among shareholders that the journey to winning all the 3 Arbitrations is realistic and in this journey they will be remunerated for their loyalty.

The exact amounts are yet to be determined, as Zenith shall as well be well capitalised for future development. With the amount of funds remained in the Company, we will continue our operations as before, while adjusting our model to align with the energy business environment of 2026.

 

10: Where do you envision Zenith Energy in two years? 

Andrea Cattaneo (CEO) Zenith Energy Ltd: A company very strong financially, with a great reputation and with plenty of acquisition opportunities to consider, learning from past experience in electing the location where to invest.

 

Dagens Börs thanks Andrea Cattaneo, CEO of Zenith Energy, for a very interesting interview, and we wish him and Zenith the best of luck!

Diagram ovan: Zenith Energy Ltd. dagsdiagram/ Oslo Börs (diagram källa: Infront), currency NOK.