Sterling Energy has released its operational update and financial results for Q3 ended 30 September 2016 on assets in Mauritania, Somaliland and Cameroon.

On the Chinguetti oil field, the Company says it continues to work diligently with Société Mauritanienne des Hydrocarbures et du Patrimoine Minier (SMHPM) and other relevant stakeholders to ensure that the Abandonment and Decommissioning (A&D) project is safe, robust in execution and leverages the full benefits of the current cost deflated landscape.

Chinguetti is due to stop production in 2017, with decommissioning operations expected to begin shortly after and subject to approval from the Government of Mauritania.

The field’s production, net barrels of oil to the Group in the period totaled 32,284 bbls, an average of 351 bopd compared to the 27,904 bbls in Q3 2015, an average of 303 bopd for the equivalent period in Q3 2015. The Chinguetti JV partners; Petronas, Tullow Oil, SMHPM, Premier oil and Kufpec, are currently assessing how best to stop production from the Chinguetti field, which is expected in 2017.

The company said it has continued with its portfolio re-arrangement efforts, relinquishing exploration assets with limited near to mid-term value monetization options, adding that it plans to preserve and execute operational activities on both the Somaliland Odewayne and Mauritania C-10 exploration assets in 2017, Your Oil and Gas news reports.

Regional 2D seismic acquisition to cover the Odewayne block and satisfy the minimum work obligation for Phase 3 is expected to commence in H1 2017. Meanwhile, on the Ntem Concession, offshore Cameroon, the Company says has issued a notice of surrender to be effective by the end of December 2016. Sterling says it does not expect to incur any material costs associated with the surrender.

Anita Fatunji