Australia-listed Otis Energy has ended an agreement to purchase a stake in a block in Yemen from Mitsui.

Early last year, Otis and Mitsui entered an agreement whereby Otis would take an 8.5% interest in Block 7 in Yemen.

However after extensive discussion, the companies have chosen to end the agreement.

Under the deal completion was expected to take place on 24 April, at which point the companies entered into a period of 20 business days to find an alternative way to make the transaction stick.

The companies decided to end the agreement before the end of that 20-day period.

Block 7 covers an area of 2950 square kilometres, roughly 400 kilometres west of Yemen’s capital city, Sana’a. To date 10 wells have been drilled on the block, with two of those wells testing oil to the surface, Al Meashar-1 and 2.

Oil Search operates Block 7 with a 34% stake and is currently partnered by Kufpec (21.25%), Arc Energy (21.25%), Yemen General Corporation Oil & Gas (8.5%) and Mitsui (8.5%).