OIL, GAS EXPLORATION/DEVELOPMENT ACTIVITY PICKING UP OFF TUNISIA

Oct. 25, 1993
Exploration and development is gathering momentum off Tunisia. British Gas plc this month started work on a 492 million ($738 million) gas field development project in Tunisia that will help the country become self-sufficient in natural gas. Meantime, a 50-50 combine of operator Union Texas Petroleum Holdings Inc. and Louisiana Land & Exploration Co. has signed an oil and gas exploration permit off Tunisia.

Exploration and development is gathering momentum off Tunisia.

British Gas plc this month started work on a 492 million ($738 million) gas field development project in Tunisia that will help the country become self-sufficient in natural gas.

Meantime, a 50-50 combine of operator Union Texas Petroleum Holdings Inc. and Louisiana Land & Exploration Co. has signed an oil and gas exploration permit off Tunisia.

Tunisia's gas fields have been thought too small to develop as a source of gas exports. Domestic requirements have been met mainly by Algerian gas arriving via the TransMediterranean pipeline.

BG MISKAR PLANS

BG intends to develop Miskar field to supply gas for electricity generation and distribution. A long term supply contract has been signed with Ste. Tunisienne du Electricite et du Gaz (STEG).

The contract commits British Gas to supply STEG with as much as 160 MMcfd of gas for 5 years after production begins in mid-1995, and 200 MMcfd thereafter.

Miskar field was discovered in 1975 on the Amilcar concession. It lies 75 miles off Tunisia in 225 ft of water in the Gulf of Gabes. BG estimates field reserves at 1 tcf.

Three platforms will be used to develop Miskar field. Twelve wells "Till produce via wellhead platform to an adjacent processing platform. A flare boom platform will be installed nearby.

Development drilling is under way with the J.T. Angel jack up rig operated by Reading & Bates Corp., Houston.

Produced gas will be exported via subsea pipeline to the Hannibal onshore processing plant at Sfax. Here gas will be prepared for industrial and domestic consumption, while liquids will be stripped out for sale.

OTHER BG TUNISIA

BG is 100% owner and operator of Miskar. Its other Tunisian interests are as operator in Amilcar 50%, West Ker-kennah 49%, and Roumedia 50% and as a minority interest owner in South Kerkennah 15%.

Amilcar offshore permit is said to contain several smaller gas fields along with Miskar. These will be developed as Miskar production declines. BG expects Miskar to provide secure supplies for 20 years.

West Kerkennah onshore/offshore permit includes two producing concessions. The onshore Gremda/El Ain area holds five oil wells producing a total 2,500 b/d. West Gremda field lies within the city of Sfax. Two wells produce on El Hajeb/Guebiba permit at a combined rate of 200 b/d of oil.

Last year BG discovered Cercina oil field near the Kerkennah Islands on the West Kerkennah block. This is under development, with first oil expected by yearend at 4,000-5,000 b/d.

Cercina crude oil will be exported via offshore loading into tankers, Peak production of 10,000 b/d is expected in 1995. BG also said it expects to produce 7,000 b/d of oil from Rhemoura field on the West Kerkennah permit beginning in fall 1993.

BG bought into South Kerkennah license in 1991, acquiring the 15% stake of Springfield Oil Services Inc., Tunis. The permit is operated by Amoco Corp.

Roumedia permit is the largest single concession in Tunisia, covering 2,300 sq. km. BG acquired the permit in 1992.

UNION TEXAS/LL&E PERMIT

The Union Texas/LL&E permit calls for a 4 year exploration program on the Ramla block.

Ramla is a 1 million acre block about 80 miles offshore in the Gulf of Gabes and about 180 miles southeast of Tunis. Water depths average about 200 ft.

Union Texas Maghreb Inc. and LL&E Tunisia Ltd. each will bear 50% of exploration costs. In the event of development of a discovery, state owned petroleum company L'Enterprise Tunisienne D'Activities Petrolieres (ETAP) will have the right to participate with as much as a 50% interest.

The companies have a-reed to acquire seismic data and drill one well during the permit's 4 year term. Permit extensions are available under certain conditions.

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