Africa Oil has announced it will be withdrawing from blocks 7 and 8 in the Somali region where it has 30 percent interest together with New age which is the operator with 40 percent and EAX with 30 percent.
The company says its decision has been informed by its concerns over the commerciality of the reservoir as well as doubts over the quality.
This is despite some hope exhibited by the El kuran-3 well on block 8 that was completed in the first half of the year and showed had some oil and gas shows.
“The Company has informed the Ethiopian Government and its partners that it intends to withdraw from Blocks 7 and 8 in the Somali region. Although the El Kuran-3 well did demonstrate some oil and gas potential, the Company does not feel it is warranted to continue efforts at this time due to concerns over reservoir quality and commerciality,” the company said in a statement.
Elsewhere in Ethiopia the company says it will be continuing with plans to acquire 2D seismic in the Rift Basin area while in the South Omo block Africa Oil and its partners say they will be entering into the next exploration period.
Africa Oil has 30 percent interest in the South Omo basin together with its partners Tullow Oil (operator) and Marathon Oil with 50 percent and 20 percent respectively while in the Rift basin Africa oil (operator) and its partner Marathon have a 50 percent interest each.