Petroceltic and Hess have withdrawn from the Dinarta licence in the Kurdistan region of Iraq.
The move comes after a review into drilling operations on the Shireen-1 exploration well which faced “significant operational challenges” last year.
A spokesman said the decision was made following the change in oil price, as well as lack of conclusive well results to date and the limited time remiaing within the Production Sharing Contract (PSC).
Brian O’Cathain, chief executive of Petroceltic said:”Petroceltic’s strategy remains clearly focussed on delivering from its core producing and development assets, whilst maintaining balanced exposure to longer term exploration led growth wherever possible.
“In light of this, and the current oil price environment, the decision to withdraw from Kurdistan is the right one for the business.”
In January it was announced that the drilling operations on the Shireen-1 exploration well in the Dinarta licence had faced a number of challeneges since drilling had resumed in October last year.
The well had reached a maximum depth of 1430metres in the Jurassic formations in December, before being suspended, while forward options were reviewd by the operator.
It was concluded that an additional well would be required to further evaluate the exploration potential of the Shireen prospect.
Hess and Petroceltic said all PSC work program obligations had been fufilled other than the required final remediation of the well sites.
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