Zenith Energy has signed a conditional sale and purchase agreement (SPA) with Kufpec (Tunisia) to acquire a working interest in the North Kairouan permit and the Sidi El Kilani concession (the Tunisian acquisition) in Tunisia.
Zenith Energy’s wholly owned subsidiary, Zenith Energy Netherlands has signed the agreement for the Tunisian acquisition.
Kufpec owns an undivided 22.5% stake in the assets, together with 25 Class B shares in the operator Compagnie Tuniso-Koweito-Chinoise de Pétrole (CTKCP).
The Sidi El Kilani concession includes the Sidi El Kilani oilfield (SLK), which is claimed to be one of the most productive fields in onshore Tunisia and currently produces, natural flow approximately 700 barrels of oil per day (bopd).
It was first discovered in 1989 by KUFPEC with commercial production beginning in 1993.
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.”
Zenith’s partners in the Tunisian acquisition
Zenith’s partners in the Tunisian acquisition will include the Entreprise Tunisienne d’Activités Pétrolières (ETAP) with a 55% interest and CNPC, China National Petroleum Corporation with a 22.5 % interest.
Subject to the conditions set out in the SPA, Kufpec will sell, assign and transfer the concession to Zenith Netherlands.
Andrea Cattaneo added: “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.”
