Tullow Oil is pulling the plug on its Norwegian operations in light of “on-going challenges presented by a low oil price”.
The move will result in 50 jobs losses.
London-headquartered Tullow is primarily focused on exploration in Africa but gained significant acreage in Norway following its acquisition of Spring Energy in 2013.
According to the FTSE 250-listed firm’s website, Tullow has 34 Norwegian licences and had plans to drill four exploration wells in 2016.
Tullow will now divest its Norwegian portfolio to allow it to concentrate on developing assets in Africa and South America.
A spokesman for the company said: “Tullow Oil has made a decision to sell its exploration and development licences in Norway and exit the country.
“It has submitted notifications to the relevant authorities and has commenced a consultation process with its staff.
“This difficult decision has been made in response to the ongoing challenges presented by a low oil price and the need to prioritise our investment in our core portfolio in Africa and South America. We also need to consolidate our cost base.
“We will, of course, fulfil all our commitments on our existing licences and honour all our obligations to staff.”
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