BP PLC has relinquished its 50% interest in Block 24/11 offshore southern Angola after determining the 2014 Katambi gas discovery to be uncommercial.
As a result of this and other exploration write-offs in Angola, the firm expects to include a noncash exploration write-off in Angola of about $750 million in its second-quarter results.
BP is reviewing its exploration activities in an effort to refocus primarily on gas as well as certain oil projects in regions where the firm currently operates. As part of the transition, BP is exiting less competitive oil and gas exploration prospects.
BP last October said it would not continue frontier exploration on the four blocks it operated in the Great Australian Bight offshore southern Australia. BP and partner Statoil ASA subsequently signed a swap agreement this month in which Statoil has taken full ownership and operatorship of two of the blocks (OGJ, June 19, 2017, p. 22). BP is discussing an exit from the remaining blocks with the Australian government.