Lukoil has pulled the pin on its proposal to acquire FAR, including a share in the Sangomar oil development offshore Senegal, Africa.
In February, FAR received a conditional non-binding proposal from Lukoil, which was subject to corporate due diligence and Lukoil board approval.
Lukoil stated that the $220 million price proposed was a higher value for FAR shareholders than both the priced sale of the Rufisque offshore, Sangomar offshore and Sangomar deep offshore (RSSD) projects to Woodside and the incomplete takeover proposal from Remus Horizons.
However, FAR was advised by Lukoil last week that the proposal would not be proceeding to a legally binding offer.
FAR will now meet with its shareholders to consider approving the sale of its interest in the Senegal RSSD project to Woodside.
The RSSD joint venture is held by Woodside (35 per cent), Capricorn Senegal (40 per cent), FAR (15 per cent) and Petrosen (10 per cent).
Should Woodside acquire the project, its participating interest in the RSSD joint venture will increase to 82 per cent for the Sangomar exploitation area and 90 per cent for the remaining RSSD evaluation areas.
The Sangomar field development was approved by the joint venture and commenced execution in January 2020, following the receipt of all required government approvals and execution of key contracts.
In December last year, FAR announced the sale of its share in Sangomar to ONGC Videsh Vankorneft, but Woodside exercised its right to pre-empt the sale.