(Ecofin Agency) - Sterling Energy PLC, an upstream oil and gas company listed in London, has finalised the acquisition of a 40.5% stake in the production sharing contract (PSC) on Block C-3 covering 9800 km2, offshore Mauritania.

The acquisition made through Sterling Energy Mauritania Ltd, its 100% owned subsidiary, is within the scope of its sales and purchase agreement with Tullow Mauritania Ltd which is the operator of the PSC with a 90% share.

Thus, Tullow Mauritania now holds a 49.5% share, maintaining its status as operator, against 40.5% for Sterling Energy Mauritania and 10% for Société Mauritanienne des Hydrocarbures et du Patrimoine Minier (SMH).

The production sharing contract is effective since 2013 and in the first phase of an exploration period due to expire on 30 June 2016. At the end of this phase, the joint venture partners will decide whether to enter into phases 2 and 3, each for three years, with a minimum work obligation to process 700 km2 of 3D seismic data and to drill a well in phase 2 and another in phase 3.

During the exploration phase, Sterling Enegy Mauritania and Tullow Mauritania will acquire, proportionally, the 10% share of Société Mauritanienne des Hydrocarbures et du Patrimoine Minier (SMH), we learn.

Sterling Energy is also in the process, with Tullow Mauritania, of acquiring 13.5% share in the production sharing contract on Block C-10, covering 10725 km2 offshore Mauritania where water depths range between 50m and 2,400m.

Sterling Energy PLC, an oil and gas exploration company, holds assets in high potential projects in Madagascar, Mauritania and Somaliland.