Zenith Energy has announced that its wholly-owned subsidiary, Zenith Energy Netherlands, has signed an extension of the agreement for the conditional Sale and Purchase Agreement (SPA) it signed with a 100% subsidiary of CNPCI, CNPC International, CNPC International (Tunisia), for the acquisition of a participation in, inter alia, the North Kairouan permit and the Sidi El Kilani Concession, which includes the Sidi El Kilani oilfield (SLK).
The signing of the SPA was officially announced on September 8th 2020. CNPCI holds an undivided 22.5% interest in the Tunisian Acquisition, together with 25 Class B shares in Compagnie Tuniso-Koweito-Chinoise de Pétrole (CTKCP), the operator, representing 25% of the issued share capital of the company.
The SPA is conditional as it awaits the approval of the Comité Consultatif des Hydrocarbures (CCH) of the Republic of Tunisia and the Tunisian State represented by the Ministry of Industry and Energy in respect of the transfer of CNPCI’s right, title and interest in and under the SLK Concession to Zenith Netherlands.
The reason for the extension is because of the difficulties caused by the COVID-19 pandemic. The new Longstop date for Completion of the SPA is November 30th 2021. The Tunisian Acquisition is Zenith’s second acquisition concerning SLK and increases the Company’s total conditional interest in the Tunisian Acquisition to 45%.
On April 20th 2020, the Company announced that it had signed a conditional SPA to acquire the participation of KUFPEC (Tunisia), a 100% subsidiary of Kuwait Foreign Petroleum Exploration Company K.S.C.C, a subsidiary of the State of Kuwait’s national oil company, concerning the Tunisian Acquisition. The Company said it is currently in negotiations with KUFPEC to formalise a similar extension to that agreed with CNPCI.
The Chief Executive Officer of Zenith, Andrea Cattaneo, said: “We have developed a very good relationship with CNPC, and I look forward with enthusiasm to hopefully completing the acquisition of SLK in due course once we receive a favourable opinion from the CCH and the approval of the Tunisian State.”
“The Board is increasingly confident regarding Zenith Energy’s establishment in Tunisia which we consider a very favourable jurisdiction for oil production and development activities.”
%20it%20signed%20with%20a%20100%%20subsidiary%20of%20CNPCI,%20CNPC%20International,%20CNPC%20International%20(Tunisia),%20for%20the%20acquisition%20of%20a%20participation%20in,%20inter%20alia,%20the%20North%20Kairouan%20permit%20and%20the%20Sidi%20El%20Kilani%20Concession,%20which%20includes%20the%20Sidi%20El%20Kilani%20oilfield%20(SLK).The%20signing%20of%20the%20SPA%20was%20officially%20announced%20on%20September%208supth/sup%202020.%20CNPCI%20holds%20an%20undivided%2022.5%%20interest%20in%20the%20Tunisian%20Acquisition,%20together%20with%2025%20Class%20B%20shares%20in%20Compagnie%20Tuniso-Koweito-Chinoise%20de%20Pétrole%20(CTKCP),%20the%20operator,%20representing%2025%%20of%20the%20issued%20share%20capital%20of%20the%20company.The%20SPA%20is%20conditional%20as%20it%20awaits%20the%20approval%20of%20the%20Comité%20Consultatif%20des%20Hydrocarbures%20(CCH)%20of%20the%20Republic%20of%20Tunisia%20and%20the%20Tunisian%20State%20represented%20by%20the%20Ministry%20of%20Industry%20and%20Energy%20in%20respect%20of%20the%20transfer%20of%20CNPCI’s%20right,%20title%20and%20interest%20in%20and%20under%20the%20SLK%20Concession%20to%20Zenith%20Netherlands.The%20reason%20for%20the%20extension%20is%20because%20of%20the%20difficulties%20caused%20by%20the%20COVID-19%20pandemic.%20The%20new%20Longstop%20date%20for%20Completion%20of%20the%20SPA%20is%20November%2030supth/sup%202021.%20The%20Tunisian%20Acquisition%20is%20Zenith’s%20second%20acquisition%20concerning%20SLK%20and%20increases%20the%20Company’s%20total%20conditional%20interest%20in%20the%20Tunisian%20Acquisition%20to%2045%.On%20April%2020supth/sup%202020,%20the%20Company%20announced%20that%20it%20had%20signed%20a%20conditional%20SPA%20to%20acquire%20the%20participation%20of%20KUFPEC%20(Tunisia),%20a%20100%%20subsidiary%20of%20Kuwait%20Foreign%20Petroleum%20Exploration%20Company%20K.S.C.C,%20a%20subsidiary%20of%20the%20State%20of%20Kuwait’s%20national%20oil%20company,%20concerning%20the%20Tunisian%20Acquisition.%20The%20Company%20said%20it%20is%20currently%20in%20negotiations%20with%20KUFPEC%20to%20formalise%20a%20similar%20extension%20to%20that%20agreed%20with%20CNPCI.The%20Chief%20Executive%20Officer%20of%20Zenith,%20Andrea%20Cattaneo,%20said:%20em“We%20have%20developed%20a%20very%20good%20relationship%20with%20CNPC,%20and%20I%20look%20forward%20with%20enthusiasm%20to%20hopefully%20completing%20the%20acquisition%20of%20SLK%20in%20due%20course%20once%20we%20receive%20a%20favourable%20opinion%20from%20the%20CCH%20and%20the%20approval%20of%20the%20Tunisian%20State.”/emem“The%20Board%20is%20increasingly%20confident%20regarding%20Zenith%20Energy’s%20establishment%20in%20Tunisia%20which%20we%20consider%20a%20very%20favourable%20jurisdiction%20for%20oil%20production%20and%20development%20activities.”/em){kind=link}