Australian oil company FAR said Monday that it expected to complete the sale of its stake in the RSSD area offshore Senegal to Woodside in the coming weeks.
FAR said Monday it had satisfied the condition precedent for the sale of its interest in the RSSD area, containing the Sangomar development, to Woodside group relating to the termination of a third-party contract.
To remind, private investment fund Remus Horizons, which had had plans to acquire Far to get its Senegal assets, in April said it wouldn't proceed with a formal takeover bid, clearing the path for Woodside to take over Far's assets in Senegal.
FAR on Monday also said it had received formal notification from the Senegalese Minister of Petroleum and Energies that it approved the transfer of FAR’s RSSD interest to Woodside.
"Accordingly, FAR and Woodside are moving towards attending to the various outstanding completion-related matters with completion targeted for the coming weeks. FAR will keep the market updated in relation to any material developments in this regard," FAR said.
The Woodside-operated Sangomar field development, located in the RSSD area off Senegal, was sanctioned in early 2020. The field will be developed using an FPSO to be delivered by MODEC.
The FPSO will be deployed approximately 100 kilometers south of Dakar, Senegal, and will be Senegal's first offshore oil development.
The FPSO is scheduled for delivery to support the first oil production in 2023 and will be moored in approximately 780 meters water depth. The recoverable hydrocarbon reserves of the Sangomar field total approximately 500 million boe.
FAR has a 13.67% interest in the Sangomar exploitation area and a 15% interest in the remaining RSSD evaluation area.
The terms of Woodside’s acquisition include a payment to FAR of US$45 million, reimbursement of FAR’s share of working capital, including any cash calls, from January 1, 2020, to completion, and entitlement to certain contingent payments capped at US$55 million.