Sterling Energy's subsidiary Sterling Energy Mauritania Ltd. (SEML) has submitted a notice of withdrawal to its joint venture partners in Block C-3, offshore Mauritania.
As part of the withdrawal, SEML will assign its entire 40.5% participating interest in the production sharing contract (PSC) for Block C-3 to Tullow Mauritania, at no cost to Tullow. With the minimum work obligations for Block C-3 having been completed SEML will have no additional costs associated with the withdrawal.
“Our entry into the C-3 block was prefaced on the block providing dependent running room for the immature shelfal Cretaceous and Jurassic plays recognized in Block C-10,” said Eskil Jersing, Sterling Energy’s chief executive officer. “In our opinion the newly acquired and processed regional 2D seismic has not sufficiently de-risked Block C-3 to enable Sterling to commit to enter into Phase 2 of the PSC due to begin in June 2016. The withdrawal from Block C-3 is entirely in-line with our approach of disciplined exploration.”
Phase 2 includes a minimum work obligation of 700sq km of 3D seismic and the drilling of 1 well.
The PSC, awarded in 2013, covers Block C-3, which comprises an area of approximately 9800sq km. Block C-3 provided protection acreage adjacent to SEML’s other exploration interest in Block C-10, offshore Mauritania. The withdrawal from Block C-3 does not impact SEML’s interest or activity in Block C-10.
Upon completion of the assignment, the PSC holders will be Tullow (90%), as operator, and Société Mauritanienne des Hydrocarbures et de Patrimoine Minier (10%).
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