Petrofac acquires Tunisia investment

Offshore staff

LONDON -- Petrofac Ltd. has agreed to acquire a 45% interest in the Chergui concession, Tunisia, for $30 million. Petrofac will acquire the interest from Tunisian state oil company Entreprise Tunisienne D'Activities Petrolieres (ETAP), which holds the remaining 55% interest. Petrofac will operate the concession.

The Chergui gas field, on and around Kerkennah Island, near Sfax, Tunisia, was discovered as part of the West Kerkennah exploration permit granted in the late 1970s. Preliminary reserves were estimated at 50 bcf. Petrofac will invest $20 million to complete the development. The work includes constructing a 20 MMcf/d central production facility and completing a 57-km pipeline to shore that already is under way. First production is expected next year. Produced gas is to be sold to Société Tunisienne d'Electricité et Gaz under the gas pricing formula fixed by existing law, in which the price of gas is linked to FOB Med Fuel oil prices.

"Tunisia has a well-developed and stable hydrocarbon regime which offers interesting opportunities for Petrofac. Chergui is an attractive investment and fits our business model of working with national oil companies and local partners to catalyze developments," said Amjad Bseisu, chief executive of Petrofac Resources.

11-13-06