Woodside takes FAR stake in Senegal joint venture

Australia’s Woodside is exercising its right to pre-empt the sale by FAR Senegal to ONGC Videsh Vankorneft of FAR’s interest in the Rufisque, Sangomar and Sangomar Deep (RSSD) joint venture.

FAR has a 13.67% interest in the Sangomar exploitation area and a 15% interest in the remaining RSSD evaluation area. Woodside will acquire the stake via a $45m payment as well as the reimbursement of FAR’s share of working capital, and an entitlement to certain contingent payments capped at $55m.

The acquisition is subject to approval by the Government of Senegal approval and FAR shareholders.

Peter Coleman, CEO of Woodside, said: “Sangomar is an attractive, de-risked asset in execute phase, offering near-term production. The acquisition is value accretive for Woodside shareholders and results in a streamlined joint venture which will assist in our targeted sell-down in 2021.

“We plan to commence development drilling next year as we progress the project to targeted first oil in 2023.”

On completion of the acquisition, Woodside’s participating interest in the RSSD joint venture will increase to 82% for the Sangomar exploitation area and 90% for the remaining RSSD evaluation area.

The Sangomar field is located 100km south of Dakar, and is Senegal’s first offshore oil development. The field contains both oil and gas, and will be operated by Woodside.

Grant Rowles

Grant spent nine years at Informa Group based in London, Sydney, Hong Kong and Singapore. He gained strong management experience in publishing, conferences and awards schemes in the shipping and legal areas, working on a number of titles including Lloyd's List. In 2009 Grant joined Seatrade responsible for the commercial development of Seatrade’s Asia products. In 2012, with Sam Chambers, he co-founded Asia Shipping Media.
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