UK independent Premier Oil plc has exercised its right to exit a joint venture that is seeking to develop Block 2B, onshore Kenya, according to partners involved in the project. Tower Resources and Lion Petroleum, a subsidiary of Taipan Resources and the block's operator, said that Premier's exit from the block is effective as of April 30.
Premier Oil's withdrawal from the joint venture will lead to a pro-rata adjustment in Lion' and Tower’s working interests in Block 2B, with the former holding 66.66 percent and the remaining 33.34 percent held by the latter for the remaining six months of the current license phase.
Kenya's Ministry of Energy had earlier agreed to a six-month extension to the First Additional Exploration Period to Nov. 30 for the partners to complete the assessment of the remaining prospectivity of Block 2B. This extension was agreed to the ongoing legal action relating to a temporary injunction served upon Lion, Premier, and other named parties that had prevented operations over the majority of the block.
“Tower has increased its interest in Block 2B at nil cost and the six month extension to the First Additional Exploration Period will provide joint venture partners the time necessary to finish a thorough assessment of the prospectivity on this large 2,107 square miles (5,458 square kilometers) block,” Tower CEO Graeme Thomson commented in the press release.
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