Guinea Bissau: Israeli company Delek leaves oil exploration

4 December 2007

Herzeliya Pituach, Israel, 4 Dec – Delek Energy Systems, of Israeli group Delek, said Monday it would give up on oil exploration work off the guinea Bissau coast, despite saying it could return under other circumstances.

“After analyzing the results of drilling in Guinea Bissau, the company and its partners decided to bring oil exploration to an end,” Delek said in a statement.

In February the company bought an 11.4 percent stake in two oil blocs off the Guinean coast from Premier Oil.

If it finds another partner and the Guinean authorities accept a change to the exploration conditions and rights, Delek says it may be involved in future projects.

According to Britain’s Premier Oil, oil exploration work in Guinea Bissau has so far cost US$25.7 million, without producing any positive results.

The company’s last half-year report said that the second well surveyed, “Eirozes 1,” had already been sealed off and abandoned, after no results during the work carried out.

The first well, Espinafre-1, was sealed and abandoned in March, after the work failed, “for geological and operational reasons.”

After acquiring seismic information about Guinea Bissau’s offshore area last year, the oil company re-started exploration in the area where it is the concession-holder of the Esperança and Sinapa fields, in the Casamaça-Bissau sub-basin. (macauhub)