Zenith Energy has announced that its wholly-owned subsidiary, Zenith Energy Netherlands, has signed an extension in respect to the Sale and Purchase Agreement (SPA) it signed with Kuwait Foreign Petroleum Exploration Company (KUFPEC) for participation in, inter alia, the North Kairouan permit and the Sidi El Kilani Concession, which includes the Sidi El Kilani oilfield (SLK).
Completion of the SPS remains conditional on the approval of the Comité Consultatif des Hydrocarbures (‘CCH’) of the Republic of Tunisia and the approval of the Tunisian State represented by the Ministry of Industry and Energy in respect of the transfer of KUFPEC’s right, title and interest in and under the SLK Concession to Zenith Netherlands.
The reason for the extension is due to the difficulties caused by the COVID-19 pandemic which has stalled the process of completion. The new Longstop date for the completion is June 30th 2021.
The Chief Executive Officer of Zenith, Andrea Cattaneo, said: “We 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, where we are currently assessing certain additional oil production and development opportunities to further enrich our portfolio.”
KUFPEC 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.
