Zenith Energy has announced the payment of 250,000 US dollars to Kuwait Foreign Petroleum Explorations Company (KUFPEC), a subsidiary of the state of Kuwait’s national company, to acquire a 22.5% working interest in the North Kairouan permit and the Sidi Ek Kilani Concession, which houses the Sidi El Kilani oil field.

As earlier announced in April, the total consideration payable by the energy firm for the Tunisian acquisitions is 500,000 US dollars. The terms of the conditional sale and purchase agreement (SPA) that was announced on April 20, 2020, signed between the Netherland Energy company, Zenith Energy and KUFPEC (Tunisia), is that KUFPEC’s entitlement of oil produced from the SLK oil field from the date of signing of the SPA will belong to Zenith Netherlands.

Zenith has confirmed that it has started the necessary formalities to get an approval, and it is expecting a decision soon. The completion of the Tunisian Acquisition is conditional on approval to be granted by the Comité Consultatif des Hydrocarbures of the Republic of Tunisia.

Revenue generated from the date of signing of the SPA will be enough to completely satisfy the second and final consideration payment to be made by the company to the Seller by October 2020.

The Sidi El Kinani was first discovered in 1989 by KUFPEC. It covers an area of 204 square kilometers located onshore in the Pelagian Basin, Eastern Tunisia. It is considered as one of the most productive fields in onshore Tunisia.

Commenting on the situation in the statement by Zenith Energy, the Chief Executive Officer of Zenith, Andrea Cattaneo, said:

“We are delighted with the favourable terms Zenith has secured in relation to the Tunisian Acquisition and we look forward with enthusiasm to beginning activities at SLK in partnership with CNPC and the Tunisian state oil company, Entreprise Tunisienne d’Activités Pétrolières (ETAP).

“The Company is also actively exploring additional onshore oil production opportunities in the Republic of Tunisia: a safe, democratic jurisdiction with a long-established history of successful oil and gas production activities for independent companies such as Zenith.

“As is clear, we are systematically executing our development strategy in Africa across a number of opportunities by diligently deploying our financial resources to maximise the enrichment of our portfolio at a time of great opportunity.”