The British oil and gas company, Sterling Energy Plc, has announced that it has terminated its financing agreement for the Chinguetti oil field, located at 70 kilometers off the Mauritanian coast, according to Monday’s January 29 site.
This decision comes in a context where the company intends to validate the cessation of production and temporary suspension of wells (TWS), which must be done in the first or second quarter of 2018.
It should be noted that in recent years, the company is facing a problem of financial profitability due to the productive underperformance of the Chinguetti well, which is struggling to reach 8000 barrels per day.
The statistics also show that the institution recorded a cumulative loss of approximately 3 million dollars for the 2016 and 2017 years.
On this basis, the officials deemed it necessary to break the contract and to pay a quantified compensation to 31,4 million dollars to the Mauritanian government.
Remember that sterling has signed a financing agreement in 2004 with the Mauritanian government and the Mauritanian Company of Hydrocarbons and Mining Heritage (SMHPM). This initialed allows him to share with SMHPM, revenues and costs related to the participation of 12% owned by SMHPM on the site.
