Environmental & Social Review Summary
Project Number
30647
Company Name
ECUMED PETROLEUM LIMITED
Date ESRS Disclosed
Nov 17, 2011
Country
Tunisia
Region
Africa
Last Updated Date
Sep 30, 2022
Environmental Category
B - Limited
Status
Completed
Previous Events
Approved : Dec 27, 2011
Signed : Jan 16, 2012
Invested : Feb 23, 2012
Sector
Oil and Gas Production (Includes Development)
Industry
Metals and Mining
Department
Gbl Infrastructure & Natural Resources
Project Description
Candax Energy Inc. (“Candax” or the “Company”) is a junior oil and gas company listed on the Toronto Stock Exchange with assets in Tunisia. IFC is considering an equity investment of up to CA$24 million in Candax to be used in order to finance its investment program which aims to enhance production from its mature asset base, consisting of (1) the operational shallow water offshore field El-Bibane, (2) the operational onshore fields Ezzaouia and Robbana, and (3) two additional shut-in onshore fields Al-Manzah and Belli (“the Project”). Candax is the operator of the El-Bibane, Robbana and Al-Manzah fields whereas Maretap, an equal partnership between Candax and the Tunisian national oil company ETAP, operates the Ezzaouia and Belli fields. The Company’s current production volume averages around 320 barrels of oil per day. Assets in Tunisia include:
El-Bibane (73.8% working interest): Candax is the field operator. The field consists of three offshore unmanned well tower platforms, some 18 km offshore of Zarzis, south east Tunisia in the Gulf of Gabes in water depths of 7 m. Current production of liquids is from one well, one well is shut-in and the third well is used for gas injection for the optimization of reservoir liquid recovery. Liquids are sent to a central processing facility based in the industrial area of Zarzis port via an 8” subsea pipeline. Processed oil is transferred to a terminal operated by Maretap (a 50/50 joint venture between the Candax subsidiary, Ecumed and the Tunisian state owned oil company, ETAP) for export. The terminal is adjacent to the central processing facility. Final export is by ship from the Zarzis port. High pressure gas separated at the El-Bibane processing facility is recycled and sent back offshore for gas lift via a subsea 6” pipeline.
Ezzaouia (31.4% working interest): Maretap is the field operator. An onshore field with 13 wells of which currently six are producing. Liquids are transferred to a central processing facility approximately 12 km north of Zarzis. Processed oil is transferred via a 10” pipeline to the Maretap terminal adjacent to the El-Bibane central processing facility.
Robbana (80% working interest): Candax is the field operator. An onshore field located on the island of Djerba and consisting of one well with minimal above ground support facilities. Production resumed in early August 2011.
Al-Manzah (75% working interest): Candax is the field operator. An onshore field located approximately 60 km from Tunis. The field was shut-in in 2007.
Belli (50% working interest): Maretap is the field operator. An onshore field located adjacent to Al-Manzah. The field was shut-in in 1999.
This investment is limited to these assets. Potential future work programs in Tunisia may include implementation of a waterflood program in the Robbana field, well work-overs and sidetrack drilling in the El-Bibane, Ezzaouia and Robbana fields and a 3D seismic acquisition campaign at El-Bibane.
El-Bibane (73.8% working interest): Candax is the field operator. The field consists of three offshore unmanned well tower platforms, some 18 km offshore of Zarzis, south east Tunisia in the Gulf of Gabes in water depths of 7 m. Current production of liquids is from one well, one well is shut-in and the third well is used for gas injection for the optimization of reservoir liquid recovery. Liquids are sent to a central processing facility based in the industrial area of Zarzis port via an 8” subsea pipeline. Processed oil is transferred to a terminal operated by Maretap (a 50/50 joint venture between the Candax subsidiary, Ecumed and the Tunisian state owned oil company, ETAP) for export. The terminal is adjacent to the central processing facility. Final export is by ship from the Zarzis port. High pressure gas separated at the El-Bibane processing facility is recycled and sent back offshore for gas lift via a subsea 6” pipeline.
Ezzaouia (31.4% working interest): Maretap is the field operator. An onshore field with 13 wells of which currently six are producing. Liquids are transferred to a central processing facility approximately 12 km north of Zarzis. Processed oil is transferred via a 10” pipeline to the Maretap terminal adjacent to the El-Bibane central processing facility.
Robbana (80% working interest): Candax is the field operator. An onshore field located on the island of Djerba and consisting of one well with minimal above ground support facilities. Production resumed in early August 2011.
Al-Manzah (75% working interest): Candax is the field operator. An onshore field located approximately 60 km from Tunis. The field was shut-in in 2007.
Belli (50% working interest): Maretap is the field operator. An onshore field located adjacent to Al-Manzah. The field was shut-in in 1999.
This investment is limited to these assets. Potential future work programs in Tunisia may include implementation of a waterflood program in the Robbana field, well work-overs and sidetrack drilling in the El-Bibane, Ezzaouia and Robbana fields and a 3D seismic acquisition campaign at El-Bibane.
Overview of IFC's Scope of Review
IFC’s environmental and social (“E&S”) review of this proposed investment consisted of appraising technical and health, safety and environment (“HSE”) information submitted by the Company. Key documentation included: the HSE management system manual containing the Company’s HSE Policy, standards, procedures and instructions in relation to HSE management and control of the Company’s activities in Tunisia, various environmental impact assessments conducted for Candax activities in Tunisia, the oil spill contingency plan for the El-Bibane field, emergency response procedures, health and safety reports and the Company’s personnel policy handbook.
During the review, the IFC team, including an environmental specialist, met Candax management and operational staff in Paris and Tunis and visited current operations in Tunisia. These visits included the El-Bibane offshore field and onshore central processing facilities in Zarzis, the SEEB power plant at Zarzis, the Ezzaouia central processing facilities north of Zarzis, the oil storage and export terminal adjacent to El-Bibane, well intervention activities at Ezzaouia and, the Robbana field on the island of Djerba. Existing field activities and operations as well as facilities, equipment and infrastructure were assessed during the field visits.
During the review, the IFC team, including an environmental specialist, met Candax management and operational staff in Paris and Tunis and visited current operations in Tunisia. These visits included the El-Bibane offshore field and onshore central processing facilities in Zarzis, the SEEB power plant at Zarzis, the Ezzaouia central processing facilities north of Zarzis, the oil storage and export terminal adjacent to El-Bibane, well intervention activities at Ezzaouia and, the Robbana field on the island of Djerba. Existing field activities and operations as well as facilities, equipment and infrastructure were assessed during the field visits.
