Sterling Energy’s subsidiary Sterling Energy Mauritania (SEML) has announced its withdrawal from Block C-3, located offshore in the Islamic Republic of Mauritania.
As part of this, the company will assign its entire participating interest of 40.5% in the production sharing contract (PSC) for the block to Tullow Mauritania.
The company said it has completed minimum work obligations for Block C-3.
Upon completion of the assignment, Tullow will operate the PSC with 90% interest and the remaining 10% would be owned by Société Mauritanienne des Hydrocarbures et de Patrimoine Minier.
The PSC was awarded in 2013 and covers Block C-3 comprising an area of about 9,800km².
With the acquisition of interest in Block C-3 from Tullow in July 2015, SEML entered into an underexplored area of the Mauritanian shelfal region with a newly acquired regional infill 2D seismic grid.
Block C-3 also provided the company with protection acreage adjacent to its other exploration interest in Block C-10, offshore Mauritania, which will not be affected by the withdrawal.
The company plans to work with Tullow to mature the existing portfolio and finalise the planned well on Block C-10 by 2017.
Sterling Energy CEO Eskil Jersing said: "Our entry into the C-3 block was prefaced on the block providing dependent running room for the immature shelfal Cretaceous and Jurassic plays recognised in Block C-10.
"The withdrawal from Block C-3 is entirely in-line with our approach of disciplined exploration."
Completion of the withdrawal is subject to the approval by the Government of the Islamic Republic of Mauritania.