Zenith Energy to acquire Tunisian onshore oil production asset

Zenith Energy has signed an agreement with Kufpec to acquire a working interest in the North Kairouan permit and the Sidi El Kilani concession, a highly productive onshore asset in Tunisia.

The conditional sale and purchase agreement (SPA) was signed by Zenith Energy’s wholly owned subsidiary, Zenith Energy Netherlands.

The Sidi El Kilani concession comprises the Sidi El Kilani oilfield (SLK), which currently produces approximately 700 barrels of oil per day (bopd), generating gross annual revenues of about $15m.

Kufpec holds an undivided 22.5% interest in the concession, together with 25 Class B shares in operator Compagnie Tuniso-Koweito-Chinoise de Pétrole (CTKCP).

Zenith’s partners in the acquisition will include the Tunisian state-owned firm Entreprise Tunisienne d’Activités Pétrolières (ETAP) with a 55% interest, and China National Petroleum Corporation (CNPC) with a 22.5 % interest.

Under the terms of the SPA, the consideration payable by Zenith Netherlands is $500,000.

Zenith Energy CEO Andrea Cattaneo said: “We are delighted to have executed the SPA with regards to the interest in the Sidi El Kilani Concession, a highly productive Tunisian onshore oil production and development asset, which has consistently outperformed even the most optimistic production forecasts since commercial production commenced in 1993.

“Upon completion of this deal, Zenith will have material production revenue for reinvestment in field development activities.

“Our strategic outlook is that oil prices will progressively strengthen in line with a gradual worldwide recovery in financial and industrial activity following the progressive alleviation of the devastating Covid-19 pandemic.”

Last December, Zenith Energy signed an agreement to acquire Coro Energy’s natural gas production and exploration portfolio in Italy.