Oil and gas exploration firm Sterling Energy has lifted force majeure on operations offshore Cameroon following a nine-year dispute over maritime borders.
The firm today confirmed that along with its joint venture partner Murphy Cameroon Ntem Oil Co, a decision has been made with Cameroon’s national oil company – Societe National des Hydrocarbures – to lift the force majeure declaration and allow exploration activities to proceed.
The large undrilled block in the Rio Muni Basin has been under force majeure since June 2005 when a row erupted between Cameroon and Equatorial Guinea over maritime border claims.
In November 2011, Sterling signed a farm-out agreement with Murphy for a 50% working interest and operatorship of the Ntem Concession. Sterling retains a 50% non-operated working interest, and under the terms of the farm-out, Murphy will pay Sterling’s share of the cost for drilling the first well.
The current exploration period started yesterday (January 22) with a minimum work obligation of one exploration well in the remaining 15 Months.
Murphy has contracted the Ocean Confidence drill ship to drill the first exploraiton well – Bamboo-1 – at the site, which has around 450million barrels of oil equivalent.
“We are very excited to move forward with an exploration programme on this highly prospective block,” said Sterling executive chairman Alastair Beardsall.