The Tunisian government's recent transfer of the El Menzah oil concession to Exxoil has sparked heated debate and accusations of spoliation of national wealth. The concession, which was previously shared with Ecumed Petroleum Grombalia Limited, was transferred to Exxoil after the latter's failure to meet its obligations. The move has raised concerns among Tunisians, who are eager to benefit from the country's natural resources. The El Menzah field, discovered in 1998, has been inactive since 2007.
The El Menzah field was initially developed with a concession established by decree in 2000. However, the Tunisian Enterprise for Petroleum Activities (ETAP) decided not to participate in the development of the field, citing a resolution from its board of directors in 2001. This decision was not made in response to the current controversy but was a deliberate choice made over two decades ago. According to the Ministry of Industry, Mines, and Energy, the concession was previously shared between Ecumed Petroleum Grombalia Limited (75%) and Exxoil (25%), with no participation from ETAP.
The El Menzah field has been inactive since 2007, when production dropped to approximately 35 barrels per day. The cumulative production at that time had reached 1.9 million barrels. While it is unclear whether the oil reserves have been depleted, industry experts note that the closure of a field can be due to decreased profitability rather than exhaustion of resources. The possibility of resuming production depends on various factors, including recoverable volumes, infrastructure condition, and operational costs.
Exxoil initiated a procedure to take over the rights and obligations of its co-licensee, Ecumed Petroleum Grombalia Limited, which had gone bankrupt in 2021. The transfer was authorized by the Minister of Hydrocarbons and published in the Official Journal on October 23, 2026. The process began in January 2024, with ETAP reaffirming its decision not to participate in the field's development. The Hydrocarbon Consultative Committee issued a favorable opinion in September 2024.
The controversy surrounding the El Menzah concession highlights the need for transparency in Tunisia's management of its natural resources. While the transfer of the concession to Exxoil has raised concerns, it is essential to separate facts from speculation and accusations. The new concessionaire is bound by the existing legal and contractual framework, and the state will still receive taxes and royalties as per applicable laws.
Estimates of the El Menzah field's potential vary, with some suggesting a hypothetical production of 1,000 cubic meters of oil per year, equivalent to approximately 17.2 barrels per day. However, this figure is not a technical estimate of the field's potential and should not be taken as a production limit. A thorough technical evaluation of the field is necessary to determine its recoverable reserves and potential production.
The El Menzah concession controversy underscores the importance of informed discussion and transparent management of Tunisia's natural resources. While the country's oil reserves are a valuable asset, it is crucial to prioritize factual information and technical assessments over speculation and accusations. The government's decision to transfer the concession to Exxoil must be evaluated in the context of the existing regulatory framework and the potential for future production.
Key points
- The El Menzah oil concession transfer to Exxoil has sparked controversy and accusations of national wealth spoliation in Tunisia.
- The concession was previously shared with Ecumed Petroleum Grombalia Limited, which went bankrupt in 2021.
- The transfer was authorized by the Minister of Hydrocarbons and published in the Official Journal on October 23, 2026.
