Forging ahead on Tunisia’s oil and gas front

LA COMPAGNIE TUNISIENNE DE FORAGE I PROFILE

La Compagnie Tunisienne de Forage has more than 40 years of experience providing specialist drilling and workover activities in Tunisia. Being a beacon of stability in the region, CTF is considered by oil exploration companies as a reliable partner in a highly competitive industry. Report by Andy Probert.

Established in 1981 as a public-listed company, La Compagnie Tunisienne de Forage (CTF) has played an influential role in the exploration and development of oilfields across Tunisia.

With hundreds of wells now drilled around the country, establishing itself as the leading drilling contractor in Tunisia, CTF’s primary operations comprise workover and drilling, both onshore and offshore.

In addition to its own rigs, CTF provides related services, including modern equipment, quality personnel and technical assistance in operations with foreign partners. Key customers include CFTP, ENI, ETAP, HBS Oil Company, Maretap, OMV, Serept, Sitep, Sodeps and TPS.

Confirming its leading position in the local drilling and workover market, CTF had completed 294 drillings and 1321 workovers by the end of 2018.

“Our turnover for 2017-18 peaked at around $20 million, based on 74% annual business growth, but then the pandemic impacted the energy market,” commented Labid Ghodhbani, who has been CEO since July 2021.

Ensuring quality service

While turnover in 2021 shrunk to $9 million, CTF still posted an admirable 21% annual growth. Now, as the world moves slowly out of the clutches of the pandemic and industry becomes normalised, there is growing optimism the company can again rebuild to its previous heights.

LA COMPAGNIE TUNISIENNE DE FORAGE I PROFILE

“We are starting to see more activity in the Tunisian oil and gas market, with more requests for our rigs. Our primary concern is ensuring the provision of top quality services to our clients,” added Mr Ghodhbani.

A member of the International Association of Drilling Contractors (IADC), CTF is headquartered in Tunis, while its main logistics base is sited in Sfax. The company is majority-owned by the Tunisian government, (with a 90% share), and is considered a valuable national asset of the country’s energy sector.

The company’s fleet comprises two mechanical drilling and workover land rigs, two diesel-electric drilling land rigs, and a diesel-electric compact platform rig, which range from 500hp to 2,000hp in power ratings.

Many of these units operate in remote locations in deserts, where daytime temperatures can reach 50ºC, and desert regions, where the only means of access is by helicopter.

CTF aircraft have also crisscrossed Tunisia, responding to requests from its customers in the most remote areas of the country, such as El Borma and Oued Zar.

To reinforce its capability to meet market demand, CTF has previously chartered rigs from a variety of suppliers under partnership agreements.

Growing market influence

Mr Ghodhbani said the company constantly upgraded its equipment to the latest technology and had recently invested in a sixth drilling rig of 1,000hp capacity.

“This rig, which is second-hand, will be launched on operational service by the end of 2022 and be primed to enable us to offer greater capacity to our clients,” he added.

CTF has also engaged with two other local competitors to offer greater coverage in the Tunisian oil and gas market.

“The aim of this strategic partnership with the likes of KCA Deutag will enable us to achieve a greater position of strength in the market and offer more qualified people with technical know-how and modern rigging equipment,” confirmed Mr Ghodhbani.

These strategic decisions are enabling it to carry out more development activities considered sustainable to the company in order to increase its activities and reduce costs, while reinvesting in new projects through to 2025.

“Our aim is to increase our market share in Tunisia to 50% within the next three years,” acknowledged Mr Ghodhbani.

CTF employs over 400 people and attaches a high priority to training. “As a service company, CTF focuses on continuous training of its personnel to meet evolving skills requirements and achieve the highest levels of safety,” he said.

“We are keen to continue developing a culture of excellence among our workforce. We have gained the esteem of many of the world’s leading oil exploration companies and seek to continue performing to our clients’ satisfaction.”

He confirmed that clients choose CTF as their drilling contractor because of the company’s accumulated in-depth experience, knowledge of modern drilling technology, qualified personnel, up-to-date equipment, and excellent health, safety and environmental record.

“Our customers are confident when they contract CTF to drill a well because they know they are dealing with a stable company with a solid reputation.”

Maintain leading role

While the company and Tunisia continue to emerge from the impacts and restrictions borne by Covid-19, the CEO acknowledged that the main challenges ahead for CTF were gaining greater market share and renewing its rig fleet.

He said: “We are also considering greater diversification by building a new business model, but this dynamic is still evolving. We have faced increasing competition from other drilling companies, but we are gaining more contracts and remain the leading drilling contractor in Tunisia.”

The company is considering adding another rig to its fleet for more offshore work, but continues to attach a high priority in developing its core competencies and staff training.

Differentiating CTF from the competition, Mr Ghodhbani pointed to its accumulated technical know-how, a robustly performing workforce and continued adherence to HSE issues at the heart of its operations.

“Building long-term relations with clients and suppliers is the key to successful progression. It is important to us to build a professional and personal relationship based on exemplary trust and respect.”

He concluded: “CTF is primed for growth, and we expect to see that reflected within the next three years. Since its creation, CTF has played a leading role in developing oil exploration and development activities in Tunisia.

“Our aim will be to maintain the good name we have built up within the industry and continue to be part of the country’s strategic choices in this area in spite of the arising geo-political situations happening globally.” n