Tunisia's Ministry of Industry, Mines, and Energy Proposes Reform to Strengthen Energy Sovereignty
Aiming to Attract New Investments and Create Opportunities for Hydrocarbon Resources
On Friday, February 7, a restricted ministerial council reviewed the proposed reform of the hydrocarbon code and the evaluation of exploration and exploitation permits. This reform aims to strengthen Tunisia's energy sovereignty while attracting new investments to create opportunities for hydrocarbon resources.
The hydrocarbon sector faces several challenges, including:
- Decreased production from oil fields
- Lack of a policy encouraging investors
- Dependence on energy imports
- Difficulty in granting permits
- Lengthy administrative processes
To address these issues, the Ministry of Industry, Mines, and Energy has proposed a reform centered around the following axes:
- Simplified procedures for exploitation permits
- Legislation adapted to market evolutions and international standards
- Increased investments in renewable energy
- Enhanced environmental measures to limit the impact of hydrocarbons
Other issues discussed include:
- Legal disputes
- Land expropriation
- Obsolescence of hydrocarbon exploitation infrastructure
The current hydrocarbon code has undergone several reforms in 2002, 2004, 2008, and 2017. Its objectives include:
- Managing hydrocarbon resource exploitation activities
- Unifying legal texts governing the hydrocarbon sector
- Establishing a special and coherent tax regime
- Encouraging petroleum investment
- Introducing a special regime for service companies in the sector
- Confirming the commitment to respect and protect the environment.
