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Home›Business & Finance›PA Resources, EnQuest farm-out deal in Tunisia hits snag
Business & Finance

April 7, 2014 · about 12 years ago

PA Resources, EnQuest farm-out deal in Tunisia hits snag

In May 2013 PA Resources entered into an agreement to sell to EnQuest 70% interests in, and to transfer the operatorship of, the offshore assets in Tunisia which include the Zarat Permit and the Didon Concession. Due to the political situation in the country the transaction is still waiting to be ra

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In May 2013 PA Resources entered into an agreement to sell to EnQuest 70% interests in, and to transfer the operatorship of, the offshore assets in Tunisia which include the Zarat Permit and the Didon Concession.

A key requirement to close the sale to EnQuest of an interest in the Zarat licence is Parliamentary approval of Avenant 5, extending the Zarat licence. Despite previous assurances from the Tunisian authorities that approval of Avenant 5 is imminent it is becoming clear that a favourable decision is not certain in the short term, PA Resources added.

“It is the firm belief of PA Resources that an early approval of Avenant 5 is in the best interest of Tunisia, especially as the company are working very closely with ETAP as PA’s Zarat partner to deliver a Plan of Development for the Zarat Field that will satisfy the needs of the Tunisian economy.

PA Resources is working hard together with the relevant authorities to expedite the approval process and will continue to explore all avenues to ensure the completion of the transaction and to realise the returns from the significant investments PA has made in these licences over many years,” the company said.

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