Zenith Energy’s subsidiary, Canadian North Africa Oil and Gas (CNAOG), is escalating its legal battle against Tunisia by preparing to file an application with the European Court of Human Rights (ECtHR). The move aims to annul an ICC International Court of Arbitration award that dismissed CNAOG’s $130 million claim.
The Calgary-based company has revealed new details about alleged irregularities in the arbitration process. These include claims that the arbitrator, Cecilia Carrara, attended events in Tunisia featuring the country’s legal counsel, Boussayene Knani & Associés. CNAOG is investigating whether Tunisia funded Carrara’s attendance at these events, raising questions about the tribunal’s independence.
Alleged Irregularities and Legal Moves
CNAOG initiated arbitration proceedings against Tunisia in 2023, alleging that arbitrary actions led to the unlawful termination of the Sidi El Kilani oil concession. The Geneva-based tribunal rejected the claim in July 2025.
Zenith then filed an annulment application with the Swiss Federal Supreme Court in September 2025, submitting evidence of the alleged irregularities. The company now plans to engage a leading European law firm for the ECtHR application, emphasizing the seriousness of the issues.
The ECtHR application will focus on CNAOG’s right to a fair hearing, as protected under the European Convention on Human Rights. Zenith highlights additional concerns, including a 70-page ICC award with only six pages of reasoning, which dismissed the $130 million claim after 32 months of proceedings.
This case is part of a broader legal dispute. In December 2024, an ICC tribunal ordered Tunisia’s state-owned oil company, ETAP, to pay Zenith’s subsidiary $9.7 million. Separately, Zenith’s UK subsidiaries have increased their arbitration claim against Tunisia to $572.65 million, with a decision expected in 2027.
Broader Implications for International Arbitration
The alleged irregularities, if proven, could have significant implications for international arbitration. They show the importance of transparency and disclosure in arbitral proceedings, particularly regarding relationships between arbitrators and parties’ legal counsel.
Ongoing Legal Battles
Zenith’s legal battles with Tunisia span multiple fronts. The company’s UK subsidiaries are pursuing a separate claim, now totaling $572.65 million, before the International Centre for Settlement of Investment Disputes (ICSID). This claim is unrelated to the CNAOG case but reflects the broader tensions between Zenith and Tunisia.