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(Image courtesy of Medco Energi Internasional)

Indonesian Medco Energi Internasional has agreed to buy a subsidiary of Canadian Chinook Energy with interests in eight oil and gas areas in Tunisia.

The deal, pending government approval, is valued at $127 million.

Medco previously held interests in Tunisia’s Durra concession and Anguid exploration area, but sold them in 2011.

CEO Lukman Mahfoedz said in a statement on Monday, “We have recently met with the government of Tunisia and they have shown their strong support in welcoming us back to Tunisia to pursue oil and gas exploration and production opportunities.”

“Upon completion of the acquisition, MedcoEnergi anticipates adding (proven and probable) reserves and oil-and-gas production by (up to) 12.3 million barrels of oil equivalent and 2,800 barrels of oil equivalent per day (BOEPD), respectively,” the statement said.

Production from the assets is expected to hit 16,000 boepd in 2018.

Five of the blocks — Adam, Sud Remada, Bir Ben Tartar, Jenein and Borj El Khadra — are onshore in the Ghadames Basin, where MedcoEnergi has a participating interest in Libya Area 47.

The remaining three blocks are offshore in the Pelagian Basin.