Statoil decided to withdraw from two Australia onshore permits Friday after disappointing test drilling results.
The company will stop activities in the EP127 and EP128 permits in the Georgina Basin in Australia’s Northern Territory, Baraka Energy said.
Baraka, Statoil’s partner in the permits, said it expects to receive formal notice of the withdrawal “in the very near future.”
Statoil has not disclosed if it will stay on as the operator of the permits.
It is unclear if Statoil also intends to halt activities in its operated adjoining permits EP103 and EP104 where it partners with Calgary-based Petrofrontier.
In January, Baraka said it will take Statoil to arbitration court over a dispute centered around the company’s exploration plan for the EP127 and EP128 permits.
The dispute and Baraka’s final working interest in the permits have yet to be resolved.
Norway’s Statoil holds a 60 percent operating stake in EP127 and EP128.
Baraka currently holds a 25 percent and Petrofrontier holds a 15 percent stake.