Pancontinental Oil & Gas and its L10A joint venture partner, PTTEP of Thailand, issued to operator BG Kenya their notices of withdrawal from Block L10A in the Lamu basin offshore Kenya.
Subject to ministerial consent, Pancontinental’s 18.75% interest and PTTEP’s 31.25% interest will be transferred to BG Kenya, which will then be the only remaining participant and will hold 100% of the L10A license.
Pancontinental reports that it is committed to the prudent deployment of its resources and, as such, it has decided to withdraw from the L10A project due to the project’s cost and potential benefit profile.
Pancontinental will advance and look to grow its African portfolio in the near term, consistent with its continued belief in the high prospectivity of parts of the continent and their future high potential to produce commercial oil and gas. Pancontinental has a remaining asset portfolio in Namibia (EL0037 with Tullow Oil) and Kenya (Block L6 with FAR Ltd., Milio International) that are fully funded for the next phase of exploration commitments.
On 6 January 2014, Pancontinental and BG spud the Sunbird-1 well with the Deepsea Metro-1 drillship in Block L10A, and drilled to 2850m in 723m of water. The well penetrated the top of the Sunbird Miocene reef at 1583.7m subsea, and became Kenya’s first offshore oil discovery (confirmed in June 2014).
Image: Odfjell’s Deepsea Metro-1 drillship / BG Group