Tunis/Tunisia — The radical amendment of the hydrocarbon code to enhance the principles of governance and transparency in the sector in compliance with international criteria, was recommended in the 2nd study on "The underside of hydrocarbon contracts in Tunisia" for 2022, presented Tuesday in Tunis during a press conference of the Tunisian Association of Public Auditors.
Conducted by this association, the study called for the mandatory publication of revenues from natural resources in an accurate manner, to detail the fiscal resources from the hydrocarbon sector.
The authors of this study called for publishing the agreements and all the documents likely to increase control over the hydrocarbon sector in Tunisia, developing the role of the the Tunisian Company for Petroleum Activities (ETAP), establishing a climate of trust between the companies in activity and the citizens, through consultation mechanisms and consolidating the social responsibility programmes.
According to the study, it is necessary to complete the process of Tunisia's accession to the global initiative on transparency in the extractive industries.
The goal of this study is to assess the degree of compliance of published contracts with the various laws and regulations governing the sector.
Expert in governance and natural resources Charfeddine Yaacoubi said on the occasion, that the data on the sector remains insufficient despite the efforts exerted by Tunisia in terms of transparency in the publication of hydrocarbon contracts, since 2016.
He deplored the lack of information on revenues from oil fields, the non-publication of the minutes of the Consultative Committee on Hydrocarbons and the lack of studies on environmental impacts.
Regarding the free blocks, Yaacoubi stated that the data on these free blocks should be available on the website of the ministry in charge, rather than on the ETAP's, considering that this goes against the principles of transparency.
The expert criticised the non-publication on ETAP's website of primary technical data to promote free blocks, although this practice has been common since 2016.
Referring to the risks and gaps in the exploration and research permits, energy expert Mohamed Ghazi Ben Jemia indicated that there are permits whose validity has expired without renewal in the free blocks. They are the permits Ksar Hdada, Hammamet marine, Borj El Khadra south, the Kef and Bargou.
Sign up for free AllAfrica Newsletters
Get the latest in African news delivered straight to your inbox
He also cited permits whose validity has exceeded the conventional deadlines including Borj El Khadra, El Anaguid, Jelma, Ramada in addition to those of Jnaien centre.
The study shows "major dysfunctions requiring the opening of an investigation," he pointed out, referring in this regard to the ETAP's decision to give up the "Makthar" permit after the acquisition of the entire share of the Swedish exploration company "PA Resources" in this permit.
Among the failures revealed by the study, there is also the uncertainty regarding the final closure of the oil wells and the rehabilitation of the sites as agricultural land, following the example of what happened at the Zaafrane, Makhtar, Mahdia, Borj el-Khadra and Jenaine Centre.
Other risks and failures related to certain permits identified by the study were cited by Ghazi Ben Jemiaa, including the non-completion of the development of the wells at the level of certain permits, although they have been granted for many years now.
In some cases, production has not started 40 years after the permit has been granted, as in the case of "El Borma" (1980), "Zelfa" (2004), or "Cosmos" (1985).
This practice is a breach of the law and means that the company to which the permit is granted continues to benefit from the advantages without being able to produce.
For the two experts, the current hydrocarbon code does not allow Tunisia to become an attractive site for investment or to draw the major oil companies in the world.
