Canadian company Zenith Energy is preparing to take its case to the European Court of Human Rights (ECtHR) over alleged irregularities in an arbitration case against Tunisia. The company’s subsidiary, Canadian North Africa Oil and Gas (CNAOG), had its USD 130 million claim denied by the ICC International Court of Arbitration.
In a statement, Zenith revealed that the arbitrator, Cecilia Carrara, attended events in Tunisia featuring the country’s legal counsel, Boussayene Knani & Associés. CNAOG is investigating whether payments to attend these events were made by or on behalf of Tunisia, which the company believes should have been disclosed.
CNAOG initiated arbitral proceedings against Tunisia in 2023, citing arbitrary actions and obstructions that led to the unlawful termination of the Sidi El Kilani (SLK) concession, a major onshore oil production and development asset in eastern Tunisia. The final award by the Geneva-seated arbitral tribunal rejected CNAOG’s claim in July 2025.
In September 2025, Zenith filed an application for annulment with the Swiss Federal Supreme Court and later submitted new evidence of alleged irregularities. CNAOG is considering filing an additional application before the ECtHR, given concerns over the independence and impartiality of the ICC tribunal.
CNAOG will engage a leading independent European law firm to advise on the ECtHR application, which will concern the company’s right to a fair hearing before an independent and impartial tribunal, as protected under the European Convention on Human Rights. CNAOG remains confident that the court will issue a decision restoring justice in this case.
These matters are in addition to the fundamental procedural concerns already raised in the annulment application. The ICC award, which was approximately 70 pages long, contained only six pages of reasoning, dismissing claims totalling approximately USD 130 million following 32 months of proceedings.
In December 2024, an ICC tribunal ordered Tunisian state-owned oil company Entreprise Tunisienne d’Activités Pétrolières (ETAP) to pay Zenith’s subsidiary Ecumed Petroleum Zarzis (EPZ) USD 9.7 million over a failure to fulfil certain contractual obligations. Additionally, Zenith’s UK subsidiaries have increased their arbitration claim against Tunisia from USD 48 million to USD 572.65 million, with the International Centre for Settlement of Investment Disputes (ICSID) tribunal set to hand down its decision in the first quarter of 2027.