(Ecofin Agency) - Following the unsuccessful completion of a seismic survey, Sterling Energy plc. on Friday announced plans to withdraw its shares in the Block C-3, offshore Mauritania.

The company plans to allot its overall 40.5% participating interest in the production sharing contract (PSC) for Block C-3, at no cost to Tullow. Tullow is to be the Operator of the block with 90% when the transfer has been completed alongside Société Mauritanienne des Hydrocarbures et de Patrimoine Minier with 10%.

The finalizing of the withdrawal is however subject to the approval of the Government of Mauritania.According to Sterling the withdrawal does not affect its activity in Block C-10. The company revealed that it is looking forward to working together with Tullow to develop its current portfolio and conclude the intended well on Block C-10 (where it acquired a 13.5% working interest in November 2015) for 2017.

“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. In our opinion the newly acquired and processed regional 2D seismic has not sufficiently de-risked Block C-3 to enable Sterling to commit to enter into Phase 2 of the PSC due to begin in June 2016. The withdrawal from Block C-3 is entirely in-line with our approach of disciplined exploration” Eskil Jersing, the Company’s Chief Executive Officer told Offshore Energy Today.

Anita Fatunji