25 November 2016, Monrovia — West Africa-focused independent energy firm, African Petroleum, announced Wednesday that the production sharing contracts for blocks LB-08 and LB-09 in Liberia have expired and will not be extended.
The PSCs formally expired in June 2016. Since this time African Petroleum had been in discussions with the relevant Liberian authorities regarding the possible amendment of terms and extension of these blocks, to give the company additional time to attract an industry partner while avoiding costly work commitments.
An agreement on the terms proposed by African Petroleum, however, could not be reached and the company was formally notified that the PSCs had expired. African Petroleum received little industry interest as a result of the challenging market conditions for exploration activity and the lack of commercial discoveries in Liberia, according to a company statement.
“African Petroleum has been active in Liberia for some time and has played a major role in helping to progress the industry in the country through the successful drilling of three exploration wells, including the non-commercial discovery at Narina-1,” African Petroleum CEO Jens Pace said.
“It is, therefore, disappointing to be exiting the country. However, our near term focus and resources must go towards the other more exciting assets within our portfolio that are generating the most industry interest and lie within proven hydrocarbon systems adjacent to world-class commercial discoveries.”