Total is pulling out of a block off Ireland where it partners Providence Resources, which has told Chinese would-be partner Apec Energy that its farm-in deal at another tract off the country is off.
The French supermajor has written to Ireland's Department of Communications, Climate Action & Environment to say it and its partners in frontier exploration licence 2/14 in the southern Porcupine basin, including UK independent Cairn Energy, will relinquish the tract at the end of this year.
Block partner Providence Resources said on Tuesday that the decision for all partners to withdraw was taken after a detailed technical assessment of the block led the partners to the conclusion that they "could not recommend any further prospect maturation".
Total holds a 35% operating stake in the block after it took up a farm-in option in 2017, paying a total of $27 million to Irish independent providence and Irish minnow Sosina Exploration, which at the time held 56% and 14%, respectively.
Cairn holds 30%, with Providence on 28% and Sosina on 7%. Cairn also got its stake through a 2017 farm-in deal.
London-listed Providence struck water-bearing reservoirs in both the Drombeg and Druid prospects with the 53/6-1 wildcat drilled in 2017 by drillship Stena IceMax.
Well data was then analysed to determine possible further prospectivity in the licence, including the underlying pre-Cretaceous Diablo prospect.
Providence also said on Tuesday that is will not give any further extensions to Chinese player Apec Energy for the receipt of funds pursuant to a farm-in agreement at standard exploration licence 11/11 off Ireland, which contains the Barryroe oilfield.
Apec has failed to come up with funds under the agreement, with the last backstop date of 30 September now passing.
"Noting this specific contractual non-performance to the amended terms to the updated FOA (farm-out agreement), the company has not agreed any further extension with Apec to the updated FOA," Providence said.
"...The company has now advised Apec that it will commence with the licence reversion process of Apec’s 50% working interest in SEL 1/11 to Exola and Lansdowne on a 40% and 10% basis, respectively."
Exola is a wholly-owned Providence entity that is operator of the licence.
"Additionally, Apec have been advised that Apec no longer retains exclusivity and that the company is now free to open up commercial discussions with third parties on the Barryroe asset."
Shares in Providence sank 18% before 8:30am in London on Tuesday.
The initial farm-in deal with Apec in March last year called for the Chinese-backed player to pay 50% of costs related to the drilling of three lateral wells plus associated sidetracks and testing.
It was also to fund the remaining 50% of all costs of all field partners for the drilling programme via a non-recourse loan facility, and was to provide the rig.
In February, Providence confirmed that China Oilfield Service Ltd’s (COSL) semi-submersible rig COSL Innovator had been selected for the drilling.
Apec has a strategic relationship with COSL.