Offshore staff
DUBLIN, Ireland — United Oil & Gas has terminated the conditional sale to Quattro Energy of United’s interest in UK central North Sea License P2519 containing the Maria discovery in Block 15/18.
Early last month the long stop date for fulfilling the conditions of the asset purchase agreement was extended to Oct. 27. Although the UK’s North Sea Transition Authority had authorized the transfer of the license, Quattro failed to raise the required finance.
This was due to the currently challenging regulatory and fiscal situation in the North Sea, which were undermining investor confidence in new field developments in the sector, explained United CEO Brian Larkin.
The license’s current phase is set to expire at the end of this month, with a requirement for a firm commitment to drill a well if the next phase of the license is to proceed.
United has decided not to apply to move into the next phase, so its interest in the license will likely cease on Nov. 30.
Larkin described the outcome as disappointing for both parties. Its main focus offshore going forward will be on funding continued exploration related to its interests offshore Jamaica.
11.01.2023
