bp PLC will relinquish A1 block, offshore Gambia, after failing to meet contract obligations.
bp was awarded the block in 2019 and was required to obtain and reprocess 2D and 3D seismic data, conduct an environmental impact assessment, and drill one exploration well. bp performed all prerequisites except drilling the exploration well.
In early 2020, the slowdown due to COVID-19 led bp to suspend drilling plans. In July 2020, bp informed the Ministry of Petroleum and Energy that it would not be able to drill a well in the block due to a change in its corporate strategy towards low carbon energy.
bp paid $29.3 million to cover relevant outstanding amounts as well as balances of training, resources, and rentals due to the government. Consequently, bp has fulfilled all license obligations.
A1 Block will revert to the government free of all encumbrances and will be on the market for licensing.
