Thursday, May 03, 2012 -
London-listed energy exploration firm Xtract Energy on Thursday said it is pulling out of a joint venture in Kyrgyzstan.
Xtract, in a company statement, said it is withdrawing from Zhibek Resources, a joint venture held with Santos International Holdings in which Xtract held a 25 percent share.
Zhibek Resources has a majority holding in the Kyrgyz company KNG Hydrocarbons.
Santos International Holdings is based in South Africa.
Xtract blames political instability for its withdrawal in the venture.
“The relationship with Santos in the Kyrgyz Republic during the past three years has been productive,” Xtract CEO Peter Moir said.
“Good progress was made on seismic interpretation on the license area, but political instability and resultant delays has served to make this one well program less attractive to both parties.”
Santos is giving Xtract 10.5 percent shares in the Caspian Oil & Gas oil producer, or 140 million shares, to take its holdings in Zhibek Resources.