UK’s Gulfsands Petroleum will exit Tunisia with the lapse of its Chorbane production sharing contract, which it says no longer fits with the company’s strategy.
GulfSands, which has activities in Syrian, Tunisia and Colombia and Morocco, said the renewal of the license was dependent on finding a partner who could help it take the Chorbane project forward, because the project no longer fit with the company’s strategy realignment in 2015.
“The group has not been able to attract such a partner and so the group has decided not to seek a further extension and instead has allowed the contract to lapse,” Gulfsands said in a statement.
Held by its subsidiary, Gulfsands Petroleum Tunisia Limited, the Chorbane licence expired on 12 July 2017, following an initial extension of 2 years which was granted in 2015 but the terms of which were disputed with Entreprise Tunisienne d’Activités Pétrolières.
The group had written off its related capitalised E&E asset as of 31 December 2016, and provided for potential costs relating to outstanding contractual issues, Gulfsands said.
No restricted cash balances are held as a guarantee of the minimum work obligations under the Chorbane PSC and there is no parental guarantee in place.
The group will now work to complete its formal exit from Tunisia.