The domestic oil and gas sector currently contributes around 4% to Tunisia’s GDP. With estimated oil and natural gas reserves of 425 mn barrels and 2.3 tr cubic feet, respectively, Tunisia’s hydrocarbon sector is not insigni cant. However, because approximately two-thirds of the country’s reserves are located o shore, exploration costs tend to be higher than in the country’s North African neighbours, Algeria and Libya. Despite production setbacks, oil discoveries continue to be made and have served to renew international interest in Tunisia’s hydrocarbon sector. Tunisia’s south has shale formations containing an estimated 23 tr cubic feet of recoverable gas and 1.5 bn barrels of recoverable oil. Despite this, the country’s oil reserves are rapidly depleting and more recent exploration e orts have resulted in only modest discoveries.