Discussions surrounding a potential merger between Tullow Oil, the London-listed African oil explorer, and Meren Energy, a Canadian-listed peer, have come to a halt.
Sky News has uncovered that talks regarding a possible tie-up were advancing until recently, but have now been discontinued.
The reason for the termination of the negotiations on Tuesday evening remains unclear.
Tullow Oil, with a market valuation of approximately £275m, concentrates on West-African producing assets in Ghana, Gabon, and the Ivory Coast.
The company has experienced a significant drop in its stock value since reaching a peak valuation of about £15bn.
Last December, discussions for a merger with Kosmos Energy also collapsed.
Meren Energy, previously known as Africa Oil Corp, holds a significantly larger valuation compared to Tullow Oil.
Being listed in Canada and Sweden, Meren Energy boasts a market capitalization of around £980m.
Under the leadership of CEO Roger Tucker, Meren Energy recently announced its readiness to invest up to $500m in acquiring producing assets in Africa.
A representative for Tullow Oil has opted not to provide a comment on the matter.