"After seeking legal advice, notice has been given to Woodside Energy terminating the farm-in agreement relating to certain interests in the Lamu Basin, offshore Kenya," Global said yesterday.

"The termination notice has been given based on Woodside's refusal to drill a second exploratory well in the project area in accordance with the farm-in agreement and its failure to take any steps to remedy this refusal."

Global said Woodside's actions were a repudiation and breach of the farm-in agreement. Global and Dana have advised Woodside that they intend to issue legal proceedings to recover losses suffered associated with the JV.

But Woodside disputes Global's claims.

In January last year, JV operator Woodside failed to find hydrocarbons in the first well, Pomboo-1, drilled at a cost of $80 million in deep water off the Kenyan coast.

The company said at the time that it had decided not to proceed with the planned second well in the drilling program.

Later in the year, the company said it would withdraw from all of its African operations to concentrate on Australia and the Gulf of Mexico.

Woodside told the West Australian that after the completion of Pomboo-1 there was a consensus within the joint venture that a follow-up well should not be drilled.

The fourth partner in the joint venture, Spain's Repsol, has not commented on the dispute.