Zenith announces extension of SPA for acquisition of SLK from KUFPEC, Tunisia
Zenith Energy, the international oil & gas production company focused on pursuing African development opportunities announced its wholly owned subsidiary Zenith Netherlands, signed an extension agreement in respect of the conditional sale and purchase agreement (SPA) it signed with KUFPEC Tunisia, a 100% subsidiary of Kuwait Foreign Petroleum Exploration Company K.S.C.C, a subsidiary of the State of Kuwait's national oil company, for a participation in, inter alia, the North Kairouan permit and the Sidi El Kilani Concession (the Tunisian Acquisition), which includes the Sidi El Kilani oilfield (SLK).
KUFPEC holds an undivided 22.5% interest in the Tunisian Acquisition, together with 25 Class B shares in Compagnie Tuniso-Koweito-Chinoise de Pétrole (CTKCP), the operator, representing 25% of the issued share capital of the company.
Completion of the SPA remains conditional on a favourable opinion being granted by the Comité Consultatif des Hydrocarbures (CCH) of the Republic of Tunisia and the approval of the Tunisian State represented by the Ministry of Industry and Energy in respect of the transfer of KUFPEC's right, title and interest in and under the SLK Concession to Zenith Netherlands (Completion).
The Extension has been granted in view of the difficulties caused by the ongoing COVID-19 pandemic which have not enabled Completion to be achieved. The new Longstop date for Completion of the SPA is June 30, 2021.
Andrea Cattaneo, CEO, Zenith Energy: "We look forward with enthusiasm to hopefully completing the acquisition of SLK in due course once we receive a favourable opinion from the CCH and the approval of the Tunisian State. The Board is increasingly confident regarding Zenith Energy's establishment in Tunisia, where we are currently assessing certain additional oil production and development opportunities to further enrich our portfolio."