Zeniths appeal6 Nov 2025 08:01
Appeal of outstanding invoices:
The court has ruled that AAOGC failed to dispute SMP’s final invoices of €630,000 within “the 6-day contractual window” after receipt, and therefore must pay it in full, but reading through, AAOGC did dispute the invoices through multiple formal letters and communications during the rig operation, both within and after that period.
Apparently, under French commercial law (Articles 1103 & 1104 Civil Code), “good-faith execution of a contract” and the reality of the parties conduct can override rigid formalism of the 6 day rule, especially when the other party was fully aware of ongoing disputes.
Appeal on damages and lost revenue:
The first judge agreed SMP was at fault, but only compensated a minor technical cost, the real proven financial consequences are lost production, extended project expenses, and financing impact which must be recognised as foreseeable and quantifiable damages under French contract law..
AAOGC will likely go after cost overruns & repairs 1.5-2 million, lost production revenue 4- 5 million, standby, logistics & site costs 1 million, financing and opportunity loss 0.5 million, legal and administrative impacts 0.5 million.
In the appeal AAOGC will have the chance to put forward Independent petroleum engineering reports to quantifying the lost barrels and value, accounting expert analysis showing increased project costs, drilling daily reports documenting rig failures, downtime and SMP’s non-compliance.
These technical documents should convert what the court saw as “potential” loss into quantified, provable financial damage.
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