Primoil, a joint venture of France’s Soprodis and Oil Search of Australia, has signed a four-year production-sharing agreement with state oil company Entreprise Tunisienne d’Activites Petrolieres (Etap).

The group will form a joint venture with Etap during the exploration phase. Primoil will invest an estimated $5m in the exploration programme that includes a seismic survey and at least one well.

The 2,836-square-kilometre permit is located on the border of the Kef and Jendouba provinces.