Sierra Leone Licences Relinquished

Oslo-listed, UK-based explorer African Petroleum announced November 22 it will relinquish its interests in offshore Sierra Leone licences SL-03-17 and SL-4A-17 which it operates, with immediate effect.

It decided to not commit to an ultra-deep water drilling programme, following discussions with the Petroleum Directorate of Sierra Leone, during which the parties failed to agree an extension on suitable terms.

"Despite our efforts to progress our technical work programme and secure partners for the Sierra Leone blocks, it has become apparent that the industry appetite does not currently exist for ultra-deep water exploration in this part of the African margin. Although it is disappointing to walk away from a technically interesting area, the outcome relieves us of onerous future cost commitments," said CEO Jens Pace.

Three months ago, the newly appointed director general of the Petroleum Directorate, Timothy Kabba, announced that he had temporarily suspended the country's fourth licensing round, launched January 2018. He said that he would begin a consultation process expected to last for up to six months, until February 2019.  Kabba attended the Africa Oil Week in Cape Town earlier this month as part of that effort. The fourth round had offered five contract areas, including some areas of undeveloped discoveries from previous drilling campaigns, and a mix of shallow and ultra-deep waters (see map below).