TUNISIA - The joint Tunisian-Libyan Block.

After a long dispute, a settlement was reached in May 1988 between Libya and Tunisia over an offshore area straddling the median line of their territorial waters, in the Gulfs of GabSs and Sirte.

An agreement was signed in late 1988 and a 3,000 sq km block was carved out, 1,600 sq km from the Libyan side and 1,400 sq km from the Tunisian side. In August 1989 a joint concern was formed named Societe de Recherches et d'Exploration Commune et de Services Petroliers (JOC). It had a paid up capital of $1m shared by Libya's NOC and ETAP.

This 7th November Block lies 110 km north-east of Djerba island, to the north/north-east of El Bouri (Libya's offshore oilfield, the biggest in the Mediterranean found and operated by Agip). It is in waters averaging 200 feet deep and has three structures, two small on the Tunisian side and a big one on the Libyan side named Omar, said to contain 3.7 bn barrels of oil and 330 BCM of gas in place. Close to El Bouri, Omar accounts for more than 65% and is geologically similar to the latter.

Under a 1989 deal, 10% of JOC's revenue from the block will be invested in Tunisia. Based on the Tunisian island of Djerba, JOC will be in charge of the recipient projects in Tunisia. In 1990 JOC contracted Compagnie Generale de G?ophysique (CGG) to survey the block. The CGG report was submitted in 1991.

On Feb. 1, 1997, JOC awarded the block to a consortium of the private Saudi firm Nimir Petroleum Co. (55%) and Petronas Malaysia (45%). In Feb. 1999 Tunisia's Mediterranean Exploration company (Medex) got 20%, reducing Nimir's share to 45% and that of Petronas to 35%

Nimir, the operator, began seismic acquisition in Feb. 1998 and this ended successfully in mid-1999. The consortium was committed to drill at least three wells on the block. Development would exceed $1 bn. The group is to fund the E&P plan to recover 300m barrels and produce 100,000 b/d.