African Petroleum has agreed to let an exclusive agreement lapse in talks to sell oil licenses in Gambia and Senegal, the company said July 20.

African Petroleum had been in negotiations to sell a 70% stake in blocks A1 and A4 offshore Gambia to an unnamed third party along with another license in neighboring Senegal.

The blocks, which could contain more than 3 billion barrels of oil, are adjacent to ones in Senegal where large discoveries have been made.

“The parties have mutually agreed to not extend the exclusivity agreement which expired today,” African Petroleum said in a statement.

“The company has been approached by other industry players that are interested to join the company in the A1 and A4 licenses when the situation with the Gambian government is resolved,” it said.

The oil ministry told Reuters that African Petroleum had failed a number of times to meet its commitments. The company has acknowledged that it did not meet a requirement to drill a well within the timeframe of the agreement.

African Petroleum CEO Jens Pace met with Gambian President Adama Barrow on July 13 to discuss the state of the exploration licenses and resolve the situation.

“The company expects formal feedback from the Gambian government in early August,” it said, adding it had reiterated its position over its legal rights over the licenses.

Uncertainty over the status of some the most promising licenses in West Africa provoked a sharp drop in Oslo-listed African Petroleum’s shares earlier this month.

Offshore