Sterling Energy said it would end a funding agreement with the government of Mauritania as the Chinguetti oil field is decommissioned and abandoned.
In its 2016 annual report, Sterling said the present value of future decommissioning costs for Chinguetti was $31.45m.
'The quantum of the payment under the deed of termination is confidential but is not materially different from that provided for in the company's 2016 annual report,' the company said.
Chief executive Eskil Jersing said the termination deed was the final part of a strategic exit from Mauritania. 'The settlement of the A&D costs for a fixed amount with no exposure to future operational risk and/or cost overruns creates certainty for the business as it plans for 2018 and beyond,' he said.
At 2:31pm: (LON:SEY) Sterling Energy PLC share price was -0.55p at 13.55p