BG to Substantially Expand its Activities in Tunisia
BG International, through its BG Tunisia business, will invest an additional $450 million in Tunisia over a nine-year period. BG Group has announced that this investment would include developing the Hasdrubal gas condensate, extending the Miskar gas field development and undertaking further exploration activity in Tunisia.
David Varney, CEO of BG Group, declared at the signing ceremony that his company is committed to supplying a substantial portion of Tunisia's gas needs to 2002. He added that BG is already the largest investor in Tunisia's energy sector, having invested in excess of $600 million in the initial development of the Miskar field.
BG is also seeking further investment opportunities utilizing its gas chain expertise. These could include gas to power projects and the development of compressed natural gas as a vehicle fuel. Such projects would pave the way for additional investment by BG in Tunisia.
BG's interest in Tunisia exemplifies this country's general appeal to multinationals. Last year, the volume of foreign investment in Tunisia totaled $420 million, versus $650 in 1998. However, if privatization investments (roughly $310 million) are disregarded, then direct foreign investments in 1999 represent a 40 percent augmentation over the previous year's total. Recent economic forecasts support the relative strength of Tunisia's economy. The country's real GDP growth rate in 2000 is estimated to be above 5 percent, in line with the robust annual average during the past ten years.
© 2000 Mena Report (www.menareport.com)