Sterling Energy, an oil and gas exploration company, has issued a notice of withdrawal from the Ambilobe block, offshore Madagascar, to its joint venture partner Pura Vida Mauritius.
Sterling is the operator of the Ambilobe block that is located in the Ambilobe deep water basin, offshore north-west Madagascar.
Sterling holds 50% interest in the block and Pura Vida holds the other 50%, but following the withdrawal, Sterling will cease to be the operator of the block.
According to the company, the withdrawal is anticipated to be completed by the end of July 2016, and Sterling does not expect to incur any material costs associated with the withdrawal.
Eskil Jersing , the company’s Chief Executive Officer said: “Sterling has held an interest in the Ambilobe Block since 2004 and recently completed a fully carried 1,175km2 discretionary 3D survey in 2015.
“Given the challenging commercial landscape, we have made the disciplined decision to exit, focusing on shorter cycle revenue generating assets. We wish Pura Vida and OMNIS all the best for the future in unlocking the remaining potential on the Ambilobe Block.”