Despite Tullow Oil pulling out of its joint venture with United Oil & Gas to explore the Walton Morant offshore basin, the latter has approached the Jamaican Government to discuss the future of its exploration licence for the area, which covers 32,000 square kilometres.
“We remain committed to progressing our Jamaica asset and while the operator has now taken the decision to withdraw from the licence, we are optimistic about its potential,” United said in a release on Friday.
With 20 per cent interest in the Walton Morant basin, United Oil and Gas is a junior operator in the offshore oil exploration operation. Tullow Oil holds an 80 per cent interest.
According to United Oil and Gas, although a joint venture farm-out process led by Tullow Oil to seek partners to drill an exploration well generated interest, market conditions have kept these plans from advancing.
The minority interest holder also noted that discussions with the Government of Jamaica have been positive, even as the expiration of the initial exploration period, July 31, draws near.