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Gulfsands Petroleum pulls out of Morocco

"Our clearly stated strategy continues to be to focus capital and management resources on the Levant region and to manage down the non-core parts of our business”
oil and gas operations
New partnerships were not secured

Gulfsands Petroleum PLC (LON:GPX) has decided to pull out of Morocco, as it will no longer pursue the Moulay Bouchta petroleum agreement.

The company said the move will allow it to focus its management and capital resources in the Levant region.

READ: Gulfsands Petroleum hits reset button in Colombia

In a statement, it noted that the Moulay Bouchta contract expired in June and, at that time, the Moroccan authorities had indicated a willingness to extend the contract, however, as the company has not brought in a new partner, it won’t now proceed with the project.

The decision will cost Gulfsands US$1.75mln of cash held in Morocco as performance guarantees, though further penalties could also apply.

"Our clearly stated strategy continues to be to focus capital and management resources on the Levant region and to manage down the non-core parts of our business,” said managing director John Bell.

“Today's important and necessary decision is another key step towards achieving that goal."

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Gulfsands Petroleum plc Timeline

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