OMV partnership in Tunisian gas project wins approval

A project to build a new gas production facility and pipeline in Tunisia has been approved and is now ready to begin construction, according to its investors.

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A project to build a new gas production facility and pipeline in Tunisia has been approved and is now ready to begin construction, according to its investors.

The Nawara gasfield project, a partnership between OMV and the Tunisian National Oil Company, or Etap, aims to build a facility capable of producing about 10,000 barrels of oil equivalent per day.

“This huge energy project creates a win-win opportunity for all business partners, as well as the local communities, and it receives the highest level of support from the Tunisian government,” said Jaap Huijskes, the OMV executive board member for exploration and production.

“OMV is fully committed to investing in the development of resources in Tunisia to increase production levels and develop the reserves base,” he added.

OMV expects to invest €500 million (Dh2.5 billion) in the scheme, which it said could begin gas production in 2016. The venture will create about 200 jobs.

The Austrian gas group, part-owned by Abu Dhabi, cut its production targets last month because of the volatile security situation in Libya – where production stopped in March. It also reported a 21 per cent drop in key first-quarter operating profit to €668m.

OMV has five exploration permits and nine production licences onshore and offshore Tunisia, part of a larger drive to explore an area stretching down to sub-Saharan Africa.

halbustani@thenational.ae

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