4th Oct 2024 12:39
(Alliance News) - Zenith Energy Ltd on Friday confirmed that its fully-owned subsidiary Anglo African Oil & Gas Congo SAU has received payment of approximately EUR30,000 following legal action against SMP Energies.
The oil & gas company focused on assets in Africa and Italy brought legal action against SMP Energies, a rig contractor, following failures in its performance of drilling services in wells TLP-103 and TLP-103C of the Tilapia oilfield during 2018 and 2019.
In February, Zenith increased its claimed amount for SMP's failures to USD9 million, in consideration of "significant commercial damages" suffered by AAOGC. In particular, this involved the impossibility of beginning production activities in the Tilapia oilfield as a direct result of SMP's activities.
In July, the Paris Commerical Court rejected SMP's request for a stay of proceedings in France, after new proceedings had been initiated in the Republic of Congo, and ordered SMP to pay EUR30,000 to AAOGC as procedural costs. SMP unsuccessfully appealed the decision of the court.
Chief Executive Andrea Cattaneo said: "We are pleased by the decision of the appeal court, confirming the dilatory conduct of SMP who has made every effort to delay and protract legal proceedings to the detriment of AAOGC. The company will now proceed in presenting its final submissions with the aid of expert technical consultants to maximise the possibilities of a favourable decision that will compensate AAOGC for the very significant commercial damages it suffered because of failures ascribable to SMP."
Zenith Energy has appointed Charles Russell Speechlys as new legal counsel, and the final submission for court pleadings is expected to take place on October 25.
The final pleadings of the case are expected in or around March 2025.
Shares in Zenith Energy were up 11% at 1.55 pence each in London on Friday afternoon.
By Emily Parsons, Alliance News reporter
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