Australia's Pancontinental is withdrawing from the BG Group-operated Kenya license L10B and from the production sharing agreement governing L10B.
Pancontinental holds a 25% interest in L10B, while BG holds 75%. L10B is immediately south of area L10A, in which a joint venture also operated by BG Group (50%) made the Sunbird-1 oil discovery in 2014. Pancontinental holds 18.75% in this license alongside PTTEP of Thailand, with 31.25%.
Pancontinental said it "believes that it has sufficient exposure to the prospectivity of the area through its 18.75% interest in the adjoining Block L10A."
"The blocks have similar geological features that in some cases straddle the permit boundary, while exploration in L10A is more advanced. The company considers that the withdrawal is in the interest of prudent financial management, whilst maintaining a manageable and prospective exploration portfolio."