North Sea operator Adriatic Oil has pulled out of two production blocks in the Inner Moray Firth.
The firm has chosen to relinquish seaward production licence P1921 for blocks 12/18 and 12/9c, located around 150km north-east of Inverness.
Adriatic said re-processing and reinterpretation of existing 3D seismic data failed to identify sufficient prospectivity in the area, which lies close to the Beatrice and Captain oil fields, to warrant entering into a second exploration period.
The firm’s partner Elixir Petroleum, which holds a 20% working interest in the licence, has backed the plans and both companies have agreed to relinquish the blocks.
The two joined forces in December 2012 when Adriatic signed a farm-in agreement with Elixir.
Adriatic said it was now preparing to enter the 28th North Sea licencing round.