Woodside has exercised its right to pre-empt the sale of FAR’s share in the Sangomar oil development offshore Senegal to ONGC Videsh Vankorneft.
Chief executive officer Peter Coleman said Woodside’s acquisition of FAR’s participating interest made the value proposition for Sangomar even more compelling.
The Rufisque offshore, Sangomar offshore and Sangomar deep offshore (RSSD) joint venture comprises of Woodside (35 per cent), Capricorn Senegal (40 per cent), FAR (15 per cent) and Petrosen (10 per cent).
“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,” Coleman said.
“We plan to commence development drilling next year as we progress the project to targeted first oil in 2023.”
Woodside’s 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 following completion of this acquisition.
The Sangomar field development was approved by the joint venture and entered the execution phase in January 2020, following the receipt of all required government approvals and execution of key contracts.
Woodside took early action to manage the impacts of COVID-19 on the supply chain and project schedule, and is working with all parties involved to evaluate options to reduce total cost and near-term spend while protecting the overall value of the investment.
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