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Skrivet av Redaktionen  • 13 januari, 2025 02:32

Intervjun:

Andrea Cattaneo (CEO) Zenith Energy


Andrea Cattaneo (CEO) Zenith Energy Ltd

This is an interview in a paid collaboration.

 

Introduction: Zenith Energy Ltd is steadily advancing in its legal battle against the Tunisian state, centered on oil assets acquired during the COVID-19 pandemic. Following the state’s refusal to honor its contractual commitments, Zenith initiated three arbitration cases with the International Court of Arbitration. The company has a solid position—or rather, three solid positions—as the arbitration tribunal has already ruled in Zenith’s favor in the first dispute. The second and third disputes concerns more than SEK 6 billion at stake in total. In today’s exclusive interview, Zenith CEO Andrea Cattaneo will provide detailed insights into the timeline of these proceedings, explain why Tunisia cannot appeal the ruling in the first case, and discuss the company’s prospects moving forward.

To fully understand the context of this interview, it is important to be familiar with the following abbreviations:

ICC = International Chamber of Commerce
ICSID = International Centre for Settlement of Investment Disputes

Zenith Energy Ltd, is listed in London and Oslo.

 

 

1: Refresh our readers’ memory—what does Zenith Energy do?

Andrea Cattaneo, CEO Zenith Energy Ltd: Zenith is an International E&P (Exploration and Production) Company researching for and producing Oil & Gas. Zenith is in addition an operator, which is becoming today a rarity: operator means a company authorized by the local government, as having the technical and financial capabilities to operate a field producing oil or natural gas,

Which means being in possession of all the technical skills in relation to  labor, security, environmental protection and safety responsibilities in producing oil & gas. As well as having  good financial means to safely carry on the production as above.

Zenith has been approved to be an operator already in 5 countries. In addition, Zenith is also a producer of electricity in Italy.

 

2: The focus for Zenith is, of course, on the company’s three arbitrations. What are these disputes about.

Andrea Cattaneo, CEO Zenith Energy Ltd: The arbitrations are 3, and have been caused by illicit sequestrations of 4 fields and 3 companies, with its financials and oil assets; these illegal actions have been performed by the national oil company of Tunisia, called ETAP, controlled at 100 % by the state (arbitration 1, called ICC 1), and again by the Ministry of hydrocarbons of the Republic of Tunisia (arbitration 2 called ICC 2, and arbitration 3 called ICSID 1).

 

3: In the first dispute, the international arbitration court has ruled in Zenith’s favor, ordering the Tunisian state, via their state-owned company ETAP, to pay USD 9.7 million in damages. What suggests that the Tunisian state will pay?

Andrea Cattaneo, CEO Zenith Energy Ltd: It is worth noting that Tunisia has always paid the Arbitration Award when they lost.

 

4: Furthermore, it is stated in the ruling that the Tunisian state must also pay interest until the damages are fully reimbursed till the last USD. How is the interest calculated?

Andrea Cattaneo, CEO Zenith Energy Ltd: The interest rate, set by the Tunisian law is quite high: 14 % per annum. Interests in addition are monthly compounded (means capitalized every month).

 

5: Let’s look at disputes number 2 and 3. How large are these claims, and what is the timeline for these?

Andrea Cattaneo, CEO Zenith Energy Ltd: The second arbitration (ICC 2), is with total claims, before interest and legal costs, of 130 MUSD. The trial will be at the end of next month, February 2025, with a decision this summer 2025!

The third arbitration (ICSID 1) has a total claim before interest and legal costs of 503 MUSD. The time schedule is to be decided soonest. The trial is expected to happen this year Dec 2025 with a decision expected Q1 or Q2 2026, but the tribunal has made a decision to demanded to Tunisia and Zeniths lawyers to speed up and present a proposed calendar no later than January 20, 2025. This might possibly lead to a quicker process.

 

The time table is an overview and it looks like this – International dispute: Zenith Energy Ltd  vs  State of Tunisia


Case 1 – Arbitration 1 (ICC 1):
The Arbitral Tribunal’s decision already made in Zeniths favor. ETAP  shall pay 9.7 MUSD + interest at 14 % until fully paid (approximately 100.000 USD/ month, and increasing as the interests are compounded every month)

Case 2 – Arbitration 2 (ICC 2): Claim 130 MUSD      

  • A 3-day-trial is expected to take place at the end of next month, February 2025
  • Decision expected summer of 2025


Case 3 – Arbitration 3 (
ICSID 1): Claim 503 MUSD

  • Tribunal has demanded State of Tunisia to speed up the process and to agree with Zeniths lawyers, rapidly a final trail calendar, that needs to be proposed to the tribunal, no later than by January 20th And agreed rapidly after that.
  • Trial expected to take place within 2025.
  • The ”award”, it means the ”sentence” or the ”decision”, will consequently be delivered between Q1 or Q2 2026.

 

6: Regarding arbitration 1 (ICC 1), that the tribunal made the decision to rule in Zeniths favor, that Tunisia shall pay Zenith 9,7 MSUSD + 14 % interest per annum, can Tunisia appeal?

Andrea Cattaneo, CEO Zenith Energy Ltd: No, Tunisia is not allowed to appeal, since the international arbitrary tribunal decided that the decision is ”EXECUTORY”. Tunisia cannot appeal to the ICC.

 

Source link 1: News Zenith Energy Ltd, London Stock Exchange – official press release
https://www.londonstockexchange.com/news-article/ZEN/court-decision-in-icsid-arbitration/16827793
2024-12-19

Source link 2: News Zenith Energy Ltd, MFN News – official press release
https://mfn.se/rns/a/zenith-energy/positive-result-in-icc-1-arbitration-against-etap-2bf939a9
2024-12-19

  

 

7:  In the third Arbitration (ICSID 1) with the big claim of 503 MUSD, Tunisia has attempted to appeal your claims by trying to complicate the process by asking to split this third case in two separate arbitrations, but this was completely dismissed by the court. Can you tell us more about this!

 

Andrea Cattaneo, CEO Zenith Energy Ltd : The rational of this request from Tunisia was very complex and obscure; it is important to say that the Arbitration Court has fully rejected this application, showing in severe terms its irritation for having the Tunisian tried so, and therefore asking the Tunisia to cooperate very promptly for a speedy calendar of the rest of Arbitration ICSID 1. See my answer to question 5.

Source link: News Zenith Energy Ltd, London Stock Exchange – official press release
https://www.londonstockexchange.com/news-article/ZEN/court-decision-in-icsid-arbitration/16827793
2024-12-27

Source link 2: News Zenith Energy Ltd, MFN News – official press release
https://mfn.se/rns/a/zenith-energy/court-decision-in-icsid-arbitration-c22ebe96
2024-12-27

 

8: How will you celebrate if you and Zenith win disputes 2 and 3?

Andrea Cattaneo, CEO Zenith Energy Ltd: Yes, that would be a significant win, one that calls for a big celebration. It will also raise a delicate question: should the board of directors’ plan for a dividend? If yes, how much? That remains to be decided. The only certainty is that we will take the next step and begin making detailed plans on how to excel, search for new objects and take Zenith to the next level!

 

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.