By Razak Musah Baba

LONDON--Independent exploration and production company Premier Oil PLC (PMO.LN), said Monday it has withdrawn from Block L10A, offshore Kenya, following an exploration review.

The company retains its 25% equity in the adjacent Block L10B and prospect maturation is ongoing, with a 'drill or drop' decision to be made by mid-2014, it said.

Premier Oil Chief Executive Simon Lockett said "whilst we remain committed to exploration in Kenya, we continue to focus our resources on projects that meet our internal corporate investment metrics and to high grade our exploration portfolio accordingly."

Premier Oil held a 20% equity stake in Block L10A.

Partners in Block L10B are BG Group PLC (BG.LN), with 45% and operator status; Premier with 25%; PTT Exploration and Production Public Company Ltd., or PTTEP, with 15%, and Pancontinental Oil & Gas with 15%.

Premier Oil shares closed Friday at 301 pence, valuing the company at GBP1.59 billion.

Write to Razak Musah Baba at razak.baba@wsj.com; Twitter: @Raztweet

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