Exxon, Partner Exit Liberia

ExxonMobil and its junior partner Canadian Overseas Petroleum (COPL) have quit Liberia.

Announcing quarterly results November 13, the latter said: “During the period COPL and its partner in block LB-13, offshore Liberia, both have elected not to enter into third exploration period and accordingly, surrendered their rights to the LB-13 license, resulting in the expiration of LB-13 production-sharing contract on September 25, 2017.”

The exit by ExxonMobil was not disclosed in its 3Q results, possibly as it was not deemed sufficiently 'material' for the US supermajor. Exxon was operator with an 83% interest in LB-13, partnered by Toronto and AIM-listed COPL with 17%. The duo drilled an exploration well on the licence last December that turned out to be dry. It was the first well spud offshore Liberia for many years.

COPL has booked an exploration charge of $15.6mn related to Liberia but it continues "to work with its investment bankers to source funds for its appraisal/development project at OPL 226, offshore Nigeria, held through COPL's partnership with Shoreline Energy,” and is looking to  drill an appraisal well there in early 2018.

Whilst exploration interest in West African states from Mauritania and Senegal south to Sao Tome & Principe and Equatorial Guinea remains strong, Liberia so far remains luckless for explorers.

Mark Smedley