Domestic issues delay closure of offshore Tunisia farm-out

PA Resources (PAR) says it remains in discussions with the Tunisian government about a proposed offshore farm-out to EnQuest.

Oct 31st, 2014

Offshore staff

STOCKHOLM, Sweden – PA Resources (PAR) says it remains in discussions with the Tunisian government about a proposed offshore farm-out to EnQuest.

Sign-off has been delayed because of the country’s political situation and this week’s parliamentary elections.

Completion of the offshoreDidon field transaction went through in July, and the cash consideration is expected to be released to PAR before year-end. Completion of the Zarat transaction should occur within the next few months, allowing an extension to be secured for the permit.

PAR and state oil company ETAP have nearly finished their full field life unit plan of development (UPOD), which is designed to provide the best concept to optimize the Zarat field’s recoverable oil and gas. Work also continues between the southern and northern tract partners to develop a legally and commercially sound Zarat unitized unit operating agreement.

In addition, PAR is finalizing preparations for the offshore Elyssa 4 appraisal well which will likely be drilled in 2016.

AtDidon, the first electrical submersible pump (ESP) has been installed with operations starting late in September, and good incremental oil production resulting. The partners are looking at other ways of optimizing production to compensate for the field’s natural decline, which include installation of a second ESP next spring in a well that has been shut-in for some time.

Results from the ESP wells are expected to help determine the best location for drilling of a Didon infill well next year.

Offshore Denmark, Dana Petroleum assumed operatorship of the12/06 license from PAR in June. They will likely drill an appraisal well in 2015 on the Broder Tuck discovery, and another appraisal well could spud before year-end on the Lille John field.

10/31/2014

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