Zenith Energy to Acquire CNPC’s Stake in the SLK Oil Field in Tunisia
Calgary-based junior E&P company Zenith Energy Ltd. has signed a conditional sale and purchase agreement (SPA) with CNPC International (Tunisia) Ltd., a wholly owned subsidiary of China National Petroleum Corp. (CNPC), for the acquisition of an additional 22.5% working interest in the North Kairouan permit and the Sidi El Kilani (SLK) concession in Tunisia, for a total consideration of US$300,000.
In April this year, Zenith Energy signed a conditional SPA with a subsidiary of Kuwait Foreign Petroleum Exploration Company KSCC (KUFPEC) for the acquisition of an initial 22.5% working interest in the assets for a cash consideration of US$500,000. The completion of that transaction remains subject to receipt of approval by Tunisian regulators.
Following the completion of both the transactions, Zenith Energy will hold a 45% interest in the assets, with Tunisian state-owned oil company Entreprise Tunisienne d’Activités Pétrolières (ETAP) holding the remaining 55%.
The SLK concession is located onshore in the Pelagian basin in Eastern Tunisia, and contains the Sidi El Kilani oil field. The field was discovered by KUFPEC in 1989 and commenced commercial production in 1993, reaching peak production of approximately 20,000 barrels of oil equivalent per day in 1995. The SLK facilities also include a permanent gas oil separation plant and a 125 km pipeline with 22,000 barrels per day (bbls/d) capacity from the field to the La Skhira terminal. The field currently produces approximately 700 bbls/d.
Calgary-based Zenith Energy is a publicly-quoted independent E&P company currently engaged in oil & gas exploration, development and production operations in Azerbaijan, Italy, and Congo-Brazzaville.
The transaction is subject to customary closing conditions, including the receipt of approval by Tunisia’s Comité Consultatif des Hydrocarbures (CCH).