Hyperdynamics Corp on Tuesday announced a deadlock in its plans to continue operations and proceed with the drilling of an exploration well under the Joint Operating Agreement (JOA) administering the oil and gas exploration rights offshore Guinea, Energy-pedia reports.

This deadlock is as a result of the failure of members in the project, (Tullow Guinea, and Dana Petroleum (E&P)), in fulfilling their commitments under the JOA and the Production Sharing Contract (PSC) with the Government of the country.

Tullow Guinea (operator under the JOA) through its subsidiary, SCS Corp had in August 2015, submitted a work program and budget to Dana and Hyperdynamics, for the drilling of a well prior to the September 2016 deadline under the PSC. Tullow also presented a contracting strategy to the Government and commenced well preparation procedures indicating that it was in the process of resuming petroleum operations.

However, in opposition to its previous actions, Tullow in an Operating Committee Meeting on November 18, 2015, revealed that petroleum operations will not continue except Dana funds its share of well expenses, but Dana declined. 

Meanwhile, at the close of a two-day Petroleum Operations Management Committee in which Dana declined to attend on December 16, 2015, the government of Guinea agreed to amend the PSC in line with the exact title guarantees recommended by Dana, and agreed to by Tullow.  Hyperdynamics implemented the amendment while Tullow and the country’s Ministry of Mines and Geology initialed the document. 

Till date, Tullow and Dana are yet to sign the PSC amendment. Both companies, have said that they will not sign the agreement except the other party signs first, thereby refusing Hyperdynamics' proposition that they both sign at the same time.

“We are extremely disappointed in the actions of both Tullow and Dana. Dana stated that the only impediment to moving forward with petroleum operations was additional title assurances, but will not sign a document providing the exact assurances it sought.  And, even though Tullow is the operator, it is refusing to take the required steps to move this project forward, including promptly signing a document it has already initialed. We will continue with our efforts to get this well drilled, and we are considering all of our options to accomplish this key objective”, Ray Leonard, President and CEO of Hyperdynamics said.