TUNIS, Tunisia – New Zealand Oil & Gas (NZOG) has agreed to take a 40% stake in a Tunisian offshore permit in the Gulf of Hammamet. The Cosmos concession contains the Cosmos South oil discovery.
Storm Ventures International is the operator, with an 80% interest, the remainder is held by state-owned L’Enterprise Tunisienne d’Activites Petrolieres (ETAP).
Under the agreement, Storm will cede 40% of its share to NZOG. NZOG in return will pay a $3-million contribution to past costs, and earn an interest in the development of the Cosmos concession.
If the development plan, currently in preparation, is sanctioned via a Final Investment Decision (FID), NZOG will also pay the first $19 million of Storm's share of the costs.
The Cosmos South block has proved and probable oil reserves of 6.3 MMbbl, with further potential from adjacent lobes. The partners plan more resource assessment studies ahead of a FID, assumed to be in mid-2012.
The development plan calls for three wells, a small platform, and an FPSO with initial production rates of 15,000-20,000 b/d. If the project goes forward, first oil production is expected in mid-2014.
NZOG is also active in other areas offshore Tunisia.