Complex Made Simple

UK’s Petrofac halts Tunisia gas production again due to protests

* Petrofac had threatened in September to shut down operations entirely and leave Tunisia

* Protests renewed in Tunisia’s southern Kerkennah islands

* Petrofac’s operations supply around 13 per cent of Tunisia’s domestic gas needs

 

Oil and gas industry contractor Petrofac is halting gas production in Tunisia after two weeks of renewed protests on the southern Kerkennah islands, the company said on Wednesday.

The announcement comes just three months after Petrofac restarted operations at Kerkennah’s Chergui gas field, following nine months of disruptions due to protests.

Petrofac had threatened in September to shut down operations entirely and leave Tunisia, but the government reached a deal with protesters demanding jobs and development.

 

(Regional partners pledge billions in help for Tunisia economy)

 

Imed Darouich, head of Petrofac’s operations in the North African country, said the company was now being forced to halt operations again because protesters were blocking trucks and stocks were running out.

“After 14 days of people blocking trucks, the company finds itself unable to produce,” he told Reuters.

Petrofac officials declined to comment on local media reports that the company had once again told Tunisian authorities it would leave the country.

 

(Tunisia hosts investors to revive post-revolution economy)

 

Threatening foreign investments

Petrofac’s operations supply around 13 per cent of Tunisia’s domestic gas needs. It holds a 45 per cent share at Chergui, with the rest held by a state-run company.

 

(New Tunisian premier tries to break economic reform curse)

 

Any closure of operations would be a blow to Tunisia just as the government pushes to revive foreign investment, rein in the deficit, and spur growth through economic reform. Investment, growth and employment have been hit by labour unrest and militant attacks since Tunisia’s 2011 uprising.

Government officials say importing gas from Algeria to make up for the shortfall caused by disruption to Petrofac’s production during first nine months of 2016 had cost the government about $100 million.