Dublin-based oil and gas explorer Petroceltic International has agreed with its partner to withdraw from the Dinarta licence in Kurdistan region of Iraq.

The company said the decision was made in light of the current low oil price environment, lack of conclusive well results to date and the limited time remaining in the current period of the Production Sharing Contract for the Dinarta licence.

Petroceltic’s parner - Hess - is the operator of the Dinarta licence with a 64 per cent stake. Petroceltic owns 16 per cent of the venture, and the Kurdistan regional government holds 20 per cent.

The three stakeholders have encountered significant operational challenges since the resumption of drilling on 2 October 2014.

Petroceltic chief executive Brian O’Cathain said the explorer’s strategy remains focussed on delivering from its core producing and development assets, whilst maintaining balanced exposure to longer term exploration led growth wherever possible.

“In light of this, and the current oil price environment, the decision to withdraw from Kurdistan is the right one for the business,” he added.