Equinor Seeks Exit from Turkish Gas Play: Update

(adds Valeura share price details; comment by Equinor)

Norway’s Equinor wants to withdraw from a project to appraise deep unconventional gas in western Turkey, its London-listed venture partner Valeura Energy reported on February 4.

Valeura said it had received notification from Equinor regarding its intention to cease involvement, and that talks were underway between the pair on a commercial mechanism to enable this.

“We are sorry to see Equinor discontinue their participation in the deep play, but we are pleased with how efficient the joint investment has been for Valeura up to this point,” Valeura CEO Sean Guest said.

Equinor has funded much of the work so far in Turkey’s onshore Thrace basin, where the partners are appraising an unconventional gas accumulation. Recent production tests have disappointed, with Valeura’s share price collapsing in December when it announced its latest flow results.

An Equinor spokesman confirmed to NGW that the company would "not prioritise capital towards further activities" at the Thrace licences, and was "considering possible options" regarding its interests. He declined to comment on the reasons for the decision, however.

Valeura will use data gathered so far to move onto the next phase of appraisal, Guest said, noting the company “remained encouraged about the long-term potential for this play.” The company had $37mn in working capital at the end of last year, and it generates some revenues from shallow gas production in Thrace, which averaged 646 boe/d in the fourth quarter.

Shares in Valeura in London fell to £0.25 in early trading on February 4, from a closing price of £0.29 the previous day.