Exxon Mobil is pulling out of a deep-water oil prospect in Ghana just two years after the west African nation ratified an exploration and production agreement with the U.S. oil titan.

The company relinquished the entirety of its stake in the Deepwater Cape Three Points block and resigned as its operator after fulfilling its contractual obligations during the initial exploration period, according to a letter to Ghana’s government seen by Bloomberg and people familiar with the matter, who asked not to be named because the information isn’t public.

Exxon controlled 80% of the block, with state-owned Ghana National Petroleum Corp. holding 15% and Ghana Oil Co., the remaining 5%. The two partners will now have to search for a new operator for the block, the people said.

The work done so far included processing about 2,200 square kilometers (850 square miles) of seismic data, but Exxon didn’t drill any exploration wells, the people said.

Exxon couldn’t immediately comment during the Memorial Day holiday in the U.S. Representatives for Ghana National and Ghana Oil couldn’t immediately be reached.

Source - www.worldoil.com