Independent energy company Topic SA will receive a $28-million subordinated loan facility from multilateral development finance institution Africa Finance Corporation (AFC) to develop the Halk El Menzel offshore oil concession block, also known as the Helm project, in Northern Tunisia.
The Helm project is a low-cost development capital expenditure project covering an offshore area of 570 m2 in the Gulf of Hammamet, in northern Tunisia.
The total estimated project cost is $157.5-million.
The funding required to achieve first oil will be used for transport; installation; start-up and commissioning; first well drilling, including the acquisition of critical production installations, floating storage and offloading units; repair; upgrading the existing buoy; supplying topside facilities; and completing a wellhead platform.
The subordinated loan note has a 30-month tenure and will ensure that the project reaches first oil production by January 2018.
“AFC has a long-standing commitment to building and developing African economies that require investment in key economic sectors. AFC is delighted to be investing in Tunisia’s natural resources sector and supporting the creation of high-skilled jobs,” noted AFC CEO Andrew Ali.