Shares in Zenith Energy Ltd (LSE:ZEN, TSX-V:ZEE), the international oil and gas producer listed in London, Oslo and Stockholm, surged 25% to 5.63p after the company disclosed that Tunisia had failed to meet a court deadline in a high-stakes arbitration dispute worth approximately $130 million.
The Republic of Tunisia missed the procedural deadline to respond to an annulment application lodged by Zenith's subsidiary, Canadian North Africa Oil and Gas (CNAOG), before the Swiss Federal Supreme Court in Lausanne, instead submitting a jurisdictional challenge arguing the case should be heard in Tunisia.
CNAOG filed the annulment application in September 2025 after discovering what it described as previously undisclosed connections between two members of the original arbitration tribunal, including its chair, and the Tunisian state, which it argues constituted a serious conflict of interest.
The underlying dispute stems from the alleged arbitrary termination of the SLK oil concession in Tunisia, with CNAOG claiming lost production revenues and other damages totalling around $130 million.
Chief executive Andrea Cattaneo said Tunisia's latest move was consistent with a pattern of dilatory tactics designed to hinder Zenith subsidiaries from pursuing their claims.
The Swiss court typically issues decisions on annulment applications within six to nine months of submission.