The Tunisian State won this Friday a major legal victory in an international dispute between the company Canadian North Africa Oil & Gas Limited, a subsidiary of Zenith Energy LTD (International Energy Production and Energy Development Company. Canadian North Africa Oil & Gas Limated demanded $ 130 million in compensation for the termination of an petroleum contract Kilani.
The origin of the dispute: a coveted oil field
At the heart of the dispute: the refusal by the Tunisian State to validate the acquisition, by the Canadian Company, of the exploitation rights of a Chinese company on the oil field of Sidi Kilani (Kairouan governorate), invoking the absence of solid technical and financial guarantees.
To get around this refusal, the complainant company tried to buy all the actions of the Chinese company, hoping to appropriate its rights. A maneuver that the Tunisian state categorically rejected, believing that it violated the approval rules provided by law.
The Court of Arbitration decided in favor of Tunisia, stressing the sovereign law of the State to control any transfer of the operator of a national oil field, in accordance with the Constitution, the Hydrocarbons Code and the contractual clauses framing the field of Sidi Kilani.
Tunisian lawyers on the front line
This verdict was praised as a radiant success for Tunisian economic sovereignty. The Boussayene – Knani & Associate law firm, representing the state in this case, was congratulated for its rigor and its effectiveness. The defense was led by masters Youssef Knani, Mehrez Boussayene and Inès Youssef, in coordination with the head of state litigation, the specialized services of the Ministry of Industry and the Tunisian Business Company (ETAP).
In addition to the total rejection of the Canadian Company, the Court ordered the latter to pay all the arbitration fees, more than 800,000 dollars, as well as the Tunisian defense fees.
The challenge: to control who exploits our natural resources
The dispute was part of an international arbitration, open following the cancellation of the operating contract of the Sidi Kilani field which indirectly linked the Canadian company to the initial Chinese partner. Tunisia had refused to take control in the absence of prior approval, as required by its national laws.
