BP has axed plans to increase its stake in an project off Namibia with Serica Energy.
Serica today confirmed BP has chosen not to exercise an option to increase its interest in the Luderitz Basin licence 0047, located offshore Namibia.
The option, which expires at the end of this year, required BP to drill a well on the licence before the end of 2015.
The company’s 30% interest in the prospect will now be re-assigned to Serica, which will then hold an 85% interest with its partners National Petroleum Corporation of Namibia (NAMCOR) holding 10%, and Indigenous Energy holding 5%.
Serica today said positive results from the 3D survey and recent third party drilling operations suggest ‘significant oil accumulations’ are present in the licence area.
The company said BP’s withdrawal from the prospect presented an opportunity to attract new partners and retain a larger percentage interest.
“We appreciate the significant contribution that BP has made to the early stage exploration of our Luderitz blocks,” said Serica chairman and interim chief executive Tony Craven Walker.
“The 3D survey which we undertook with them and which was fully funded by BP has clearly demonstrated the very real potential that exists on the blocks and which has been confirmed by independent reports.”
He said the company would now progress discussions with other majors who have expressed an interest to participate in the next stage, which includes drilling a well.
“We are excited about the prospects and, with the benefit of extensive 3D coverage providing clear evidence of the potential, we expect to be able to retain an increased position in the drilling phase.”
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