Zenith Energy has concluded plans to buy the Tunisia based company, Kufpec’s Sidi El Kilani concession. The two firms have signed a SPA (conditional sale and purchase agreement). The deal for the acquisition was reached and signed by Zenith Energy Netherland, a subsidiary of Zenith Energy.
The Tunisia-based company, Kufpec, owns a 22.5 percent stake in the said asset. The company also owns 25 Class B shares in CTKCP – (Compagnie Tuniso-Koweito-Chinoise de Pétrole).
The Sidi El Kilani oilfield (SLK), in terms of productivity, is among the highest in coastal Tunisia. Its production capacity is 700 barrels of crude oil daily. This highly productive field is also part of the Sidi El Kilani concession.
KUFPEC discovered the Sidi El Kilani oilfield in 1989 but began production in 1993.
According to Andrea Cattaneo, Zenith Energy’s CEO, “We are happy for the execution of the SPA with regards to our special interest in the Sidi El Kilani Concession, which happens to be a very productive onshore oil asset in the country. This oilfield had outperformed all production forecasts concerning it since commercial production started in 1993.
Zenith Energy Partners in the Acquisition
Zenith Energy has numerous partners in the Tunisia acquisition. They include the Entreprise Tunisienne d’Activités Pétrolières (ETAP), and China National Petroleum Corporation (CNPC), with 55 percent and 22.5 percent interests, respectively.
In line with the laid down conditions in the SPA, the Tunisia-based company, Kufpec, will sell, assign, and also ensure that the concession is transferred to Zenith Netherlands.
In high spirit, Zenith Energy CEO Andrea Cattaneo said, and I quote, “Our strategic outlook is that oil prices will progressive strengthen in line with a gradual worldwide recovery in financial and industrial activities, following the progressive alleviation of the global pandemic called COVID 19.