Tullow, Sterling to Exit Mauritania C-10
Tullow and partner Sterling Energy have told the Mauritanian government they will exit block C-10 on November 29 2017, said Sterling November 2.
The production-sharing contract, awarded in 2011, is in the second phase of the exploration period for block C-10, which covers 10,725 km2. Phase 2 of the PSC expires November 30 2017 and has a minimum work obligation of one exploration well.
Sterling said the joint venture originally anticipated to drill an exploration well to test this prospect in 2017 but this will not be satisfied prior November 30.
It said that Tullow, as operator, had been negotiating with the government to secure a one year extension through a new 3D survey, without success.
Sterling, which entered the acreage in 2015, said that – despite finds by Kosmos offshore Mauritania – there was insufficient commercial justification in entering Phase three (three-year term), with its minimum work obligation of two wells. It said the gross penalty payment due to the government will be $7.5m ($1.125m net to Sterling) for not fulfilling the exploration well condition.
After a spate of gas and some oil finds, Kosmos and its partner BP earlier this week also reported a dry hole offshore Mauritania.
Mark Smedley