Oil and Gas News

Woodside closes in on Sangomar deal

Woodside Energy has entered into a sale and purchase agreement to acquire Cairn Energy’s entire participating interest in the Sangomar oil development offshore Senegal.

This follows after the company exercised its right to pre-empt the sale of Cairn Energy’s 40 per cent interest to LUKOIL last month.

The completion of the acquisition is subject to Government of Senegal approval and Cairn Energy shareholder approval, which is targeted for the fourth quarter this year.

As a result of the agreement, Woodside’s interest in the Rufisque offshore, Sangomar offshore and Sangomar deep offshore (RSSD) joint venture will increase to 68.33 per cent in the Sangomar exploitation area and to 75 per cent for the remaining RSSD evaluation area.

Cairn Energy reported in August that in the event that no other JV parties pre-empt prior to the deadline of August 26, 2020 then Woodside would acquire its 40 per cent interest in the project.

CEO Simon Thomas added: “We look forward to completing the transaction with Cairn and working with all stakeholders, including potential new joint venture partners, to successfully deliver Senegal’s first oil project.

The Sangomar project is located in the Rufisque, Sangomar and Sangomar deep blocks, which cover a combined area of 7490km² within the Senegalese portion of the Mauritania-Senegal-Guinea Bissau Basin.

Sangomar is a JV between Cairn Energy (40 per cent), Woodside (35 per cent), FAR (15 per cent) and PETROSEN (10 cent), with Woodside the project operator.