Oil company Zenith Energy has announced it has filed an application with the Swiss Federal Tribunal to annul an arbitral award issued against its subsidiary in proceedings with the Republic of Tunisia, according to Investing.com.
The application follows a July 16 ruling by the International Chamber of Commerce (ICC) arbitral tribunal, which dismissed all claims filed by Canadian North Africa Oil and Gas Limited (CNAOG), a wholly owned subsidiary of Zenith. The company’s claims were reportedly worth around $130 million.
In its press release, Zenith cited “serious procedural irregularities” in the arbitration process as grounds for annulment. The company said it had uncovered “previously unknown links between members of the arbitral tribunal and the Republic of Tunisia” following investigations conducted after receiving the decision.
Zenith also pointed out that the award contained “only six pages of reasoning” despite proceedings lasting more than two years.
The company has retained Charles Russell Speechlys Geneva to prepare and submit the annulment request. According to Zenith, the Swiss Federal Tribunal generally rules on such applications within six to nine months of filing.
The ICC-2 ruling contrasted with a previous arbitral award (ICC-1), which the company claims had been favorable to its position, the report added.
Under Swiss law, parties may seek annulment of arbitral awards under limited circumstances, including cases of procedural irregularities.
Zenith Energy describes itself as a revenue-generating energy company with production, exploration, and development assets in North Africa, the United States, and Europe.
