Dragon Oil, a petroleum producer majority-owned by Dubai, has bought into an exploration block in the country whose ongoing revolution sparked the Arab Spring.
The agreement to invest up to US$26.6 million (Dh97.6m) in an offshore field in Tunisia is the company's first step outside Turkmenistan after lacklustre drilling in Yemen.
"Of course they could have found [assets] in a safer region, but that would have come at the much higher price," said Pavel Sorokin, an analyst at Alfa Bank in Moscow. "There are political risks in Tunisia, but the political risks are associated with any country in the region."
Shares of Dragon Oil listed in Dublin jumped 1.8 per cent to close at €5.60 on Monday, the day of the announcement.
The Tunisian investment could offer a potential supply source for Emirates National Oil Company (Enoc), which owns 51 per cent of Dragon.
The Dubai Government-owned producer and retailer, which buys oil at market prices but must sell it at a lower rate mandated by the federal Government, has struggled this year to supply its petrol stations in Sharjah and the Northern Emirates. The Sharjah Government ordered Enoc's stations there to shut down after they failed to restore the flow of petrol.
Under the Tunisia agreement, Dragon Oil is to pay 75 per cent of drilling costs - up to $26.6m - in exchange for a 55 per cent stake in a new joint venture company with Australia's Cooper Energy and Jacka Resources. The Tunisian government has yet to approve the farming-out of the exploration block, which covers 4,616 square kilometres of seas.
"The selection of projects in which they can participate and which will not come at a huge price is quite limited globally," said Mr Sorokin. "They're trying to maximise the potential return without making huge upfront payments."
If the joint venture strikes oil, Dragon would take over production.
"We believe our experience offshore [in] Turkmenistan with complex and challenging reservoirs will be useful" in Tunisia, said Abdul Jaleel Al Khalifa, the chief executive of Dragon Oil.
Dragon Oil's investment comes less than a year after a vegetable seller in Tunisia set himself on fire, sparking a revolution that unseated Zine El Abidine Ben Ali from the presidency and inspired uprisings in nations including Libya and Egypt. Fears of supply disruptions stemming from the regional unrest helped push oil prices up as high as $126 a barrel this year.
In Tunisia, as in other post-revolution countries, oil officials have been quick to reassure their foreign partners that production-sharing contracts will remain unchanged despite the changes of government. "The authorities are aware of the need for investments to kick-start the economy again and are not going to make any radical moves on energy contracts," said Jean Baptiste Gallopin, the regional analyst for the risk assessment company Control Risks.
But the prospect of further change to the government could change the landscape for foreign companies such as Dragon Oil. Elections for an assembly to craft a new constitution in Tunisia are scheduled for October 23.
Anti-corruption sentiment has also made Tunisian officials more careful in compensating foreign operators for the oil and gas they produce, leading to some delays.
"There's been a widespread climate of suspicion and uneasiness among the Tunisian bureaucrats," Mr Gallopin said.
"The officials at the high level are wary of being accused of illegal dealings, and as a result they are being very cautious in their dealings with private companies in general."
ayee@thenational.ae
COMPANY PROFILE
Name: Kumulus Water
Started: 2021
Founders: Iheb Triki and Mohamed Ali Abid
Based: Tunisia
Sector: Water technology
Number of staff: 22
Investment raised: $4 million
Infobox
Western Region Asia Cup Qualifier, Al Amerat, Oman
The two finalists advance to the next stage of qualifying, in Malaysia in August
Results
UAE beat Iran by 10 wickets
Kuwait beat Saudi Arabia by eight wickets
Oman beat Bahrain by nine wickets
Qatar beat Maldives by 106 runs
Monday fixtures
UAE v Kuwait, Iran v Saudi Arabia, Oman v Qatar, Maldives v Bahrain
More on Turkey's Syria offence
Sole survivors
- Cecelia Crocker was on board Northwest Airlines Flight 255 in 1987 when it crashed in Detroit, killing 154 people, including her parents and brother. The plane had hit a light pole on take off
- George Lamson Jr, from Minnesota, was on a Galaxy Airlines flight that crashed in Reno in 1985, killing 68 people. His entire seat was launched out of the plane
- Bahia Bakari, then 12, survived when a Yemenia Airways flight crashed near the Comoros in 2009, killing 152. She was found clinging to wreckage after floating in the ocean for 13 hours.
- Jim Polehinke was the co-pilot and sole survivor of a 2006 Comair flight that crashed in Lexington, Kentucky, killing 49.
RESULTS
Argentina 4 Haiti 0
Peru 2 Scotland 0
Panama 0 Northern Ireland 0
'The Batman'
Stars:Robert Pattinson
Director:Matt Reeves
Rating: 5/5
Our Time Has Come
Alyssa Ayres, Oxford University Press
Engine: 5.6-litre V8
Transmission: seven-speed automatic
Power: 400hp
Torque: 560Nm
Price: Dh234,000 - Dh329,000
On sale: now
Labour dispute
The insured employee may still file an ILOE claim even if a labour dispute is ongoing post termination, but the insurer may suspend or reject payment, until the courts resolve the dispute, especially if the reason for termination is contested. The outcome of the labour court proceedings can directly affect eligibility.
- Abdullah Ishnaneh, Partner, BSA Law
Jawan
%3Cp%3E%3Cstrong%3EDirector%3A%20%3C%2Fstrong%3EAtlee%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EStars%3A%3C%2Fstrong%3E%20Shah%20Rukh%20Khan%2C%20Nayanthara%2C%20Vijay%20Sethupathi%26nbsp%3B%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3ERating%3A%20%3C%2Fstrong%3E4%2F5%3C%2Fp%3E%0A
MATCH INFO
Wales 1 (Bale 45 3')
Croatia 1 (Vlasic 09')
MEYDAN%20RACECARD
%3Cp%3E%3Cstrong%3E6pm%20%3C%2Fstrong%3EArabian%20Adventures%20%E2%80%93%20Maiden%20(TB)%20Dh82%2C500%20(Dirt)%201%2C200m%0D%3Cbr%3E%3Cstrong%3E6.35pm%20%3C%2Fstrong%3EEmirates%20Sky%20Cargo%20%E2%80%93%20Handicap%20(TB)%2087%2C500%20(D)%202%2C000m%0D%3Cbr%3E%3Cstrong%3E7.10pm%20%3C%2Fstrong%3EEmirates%20Holiday%20%E2%80%93%20Maiden%20(TB)%20Dh82%2C500%20(D)%201%2C400m%0D%3Cbr%3E%3Cstrong%3E7.45pm%20%3C%2Fstrong%3EEmirates%20Skywards%20%E2%80%93%20Handicap%20(TB)%20Dh87%2C500%20(D)%201%2C400m%0D%3Cbr%3E%3Cstrong%3E8.20pm%3C%2Fstrong%3E%20Emirates%20Airline%20%E2%80%93%20Handicap%20(TB)%20Dh105%2C000%20(D)%201%2C600m%0D%3Cbr%3E%3Cstrong%3E8.55pm%20%3C%2Fstrong%3EEmirates%20Airline%20%E2%80%93%20Handicap%20(TB)%20Dh105%2C000%20(D)%201%2C900m%0D%3Cbr%3E%3Cstrong%3E9.30pm%20%3C%2Fstrong%3EEmirates.com%20%E2%80%93%20Handicap%20(TB_%20Dh87%2C500%20(D)%201%2C200m%3C%2Fp%3E%0A
Specs
Engine: 51.5kW electric motor
Range: 400km
Power: 134bhp
Torque: 175Nm
Price: From Dh98,800
Available: Now
KINGDOM%20OF%20THE%20PLANET%20OF%20THE%20APES
%3Cp%3E%3Cstrong%3EDirector%3A%3C%2Fstrong%3E%20Wes%20Ball%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EStarring%3A%3C%2Fstrong%3E%20Owen%20Teague%2C%20Freya%20Allen%2C%20Kevin%20Durand%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3ERating%3A%20%3C%2Fstrong%3E3.5%2F5%3C%2Fp%3E%0A
More on Quran memorisation:
RESULT
Chelsea 2
Willian 13'
Ross Barkley 64'
Liverpool 0
THE DETAILS
Kaala
Dir: Pa. Ranjith
Starring: Rajinikanth, Huma Qureshi, Easwari Rao, Nana Patekar
Rating: 1.5/5
At a glance
- 20,000 new jobs for Emiratis over three years
- Dh300 million set aside to train 18,000 jobseekers in new skills
- Managerial jobs in government restricted to Emiratis
- Emiratis to get priority for 160 types of job in private sector
- Portion of VAT revenues will fund more graduate programmes
- 8,000 Emirati graduates to do 6-12 month replacements in public or private sector on a Dh10,000 monthly wage - 40 per cent of which will be paid by government
Age 26
Born May 17, 1991
Height 1.80 metres
Birthplace Sydney, Australia
Residence Eastbourne, England
Plays Right-handed
WTA titles 3
Prize money US$5,761,870 (Dh21,162,343.75)
Wins / losses 312 / 181
How it works
Booklava works on a subscription model. On signing up you receive a free book as part of a 30-day-trial period, after which you pay US$9.99 (Dh36.70) per month to gain access to a library of books and discounts of up to 30 per cent on selected titles. You can cancel your subscription at any time. For more details go to www.booklava.com
UAE currency: the story behind the money in your pockets
If you go
The flights Etihad (www.etihad.com) and Spice Jet (www.spicejet.com) fly direct from Abu Dhabi and Dubai to Pune respectively from Dh1,000 return including taxes. Pune airport is 90 minutes away by road.
The hotels A stay at Atmantan Wellness Resort (www.atmantan.com) costs from Rs24,000 (Dh1,235) per night, including taxes, consultations, meals and a treatment package.
