Oil company BP is paying The Gambia USD 29 million in damages for failing to honor its commitments to drill one of the wells in offshore Block A1 in Gambian waters before the exploration expiry date.

The British group has agreed to pay an amount of 29.3 million USD to the government for the failed drilling of the oil exploration well, awarded to the company in 2019. The well was to see the light of day in the offshore block A1 of the country of West Africa before July 29, 2021. "BP breached its obligations by not drilling a well before the expiry of the initial exploration period on July 29," said government spokesman Ebrima Sankareh , in a press release. The official added that the Covid-19 pandemic has caused a sea change in the global oil and gas industry and leading BP to suspend its drilling plans as planned. In July 2020, he points out, BP has told the government “it would not be able to drill a well in Block A1 due to a shift in its corporate strategy towards low-carbon energy.