Tunisia has launched a new international bidding round for offshore oil and gas assets as the country seeks to revive declining domestic energy production and attract foreign investment into long-delayed projects.
Joint Oil, a joint venture owned by Tunisia’s state energy company Etap and Libya’s Ola Energy Holdings, said it is seeking investors for two offshore assets in Tunisian waters.
The company has appointed U.S.-based advisory firm Moyes & Co to manage the international bidding process.
The first asset involves development of the Zarat field, an offshore oil and gas discovery located in waters around 90 metres deep near the ports of Sfax and Zarzis.
The second concerns exploration opportunities within the wider Joint Oil offshore block, which covers about 3,000 square kilometres and contains extensive seismic data, including 2D and 3D surveys.
According to the bidding timetable, interested companies will be able to submit proposals between Aug. 1 and Dec. 1, 2026.
Selected bidders are expected to be notified by Jan. 31, 2027, while final awards are scheduled for March 31, 2027.
Tunisia has struggled for years to attract investors to the Zarat project despite repeated attempts to relaunch development.
The field was first identified in 1992 by U.S. oil company Marathon and later confirmed through multiple appraisal wells.
However, technical complications and regulatory challenges have repeatedly delayed progress.
Tunisia’s energy regulator said previously that the field contains high levels of carbon dioxide, creating additional development costs because the gas requires specialised treatment systems and corrosion-resistant infrastructure.
Industry analysts say such conditions significantly increase project complexity and reduce profitability, particularly in a lower-scale offshore field.
The project has also faced instability among operators over the years.
In 2015, PA Resources announced plans to exit the Tunisian-side concession, leaving the project without a stable lead operator.
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Since then, Joint Oil has continued searching for new strategic partners capable of financing and developing the field.
The latest bid round comes as Tunisia’s domestic crude oil production continues to decline sharply.
According to the country’s National Observatory of Energy and Mines, crude production fell 13 percent in 2024 to around 28,800 barrels per day.
The decline has increased pressure on authorities to revive exploration and reduce dependence on imported energy at a time of broader economic strain.
Tunisia has faced recurring energy deficits in recent years as ageing oil fields mature and investment in new production remains limited.
The government has sought to encourage foreign participation in the sector through licensing rounds and partnerships, but political uncertainty, regulatory delays and operational challenges have slowed progress.
Analysts say the success of the latest bid round will depend largely on whether Tunisia can offer sufficient commercial incentives to offset the technical risks associated with offshore development.
The country hopes renewed investor interest could help unlock untapped offshore reserves and support future energy security as domestic demand continues to rise.
