The Tunisian government created the countrys state-owned Oil company, Enterprises Tunisienne dActivitÉs PetroliÈres (ETAP), in 1972. ETAPs mission is to manage the oil and Natural Gas exploration and production activities for the Tunisian government. ETAP has worked to attract foreign firms to fund oil exploration, particularly of the countrys smaller fields. To help achieve this, Tunisia reformed its Hydrocarbons laws in August 2000. One of the most important provisions of the new laws for foreign firms is a reduction in the tax rate from 75 percent to 50 percent if ETAP takes a 40 percent share of the concession. To date, ETAP has granted a total of 44 exploration licenses to 42 international and domestic companies that operate in the country.
In addition to granting domestic exploration licenses, ETAP is pursuing overseas exploration and production. The company is working in Syria with Preussag of Germany to develop small oilfields and has signed an oil cooperation agreement with Iraq. In December 2004, the Syrian and Tunisian governments signed an agreement to explore for oil in northeastern Syria. ETAP also has joint venture agreements with Sonatrach of Algeria and Libyas National Oil Company.