Australian oil and gas company Woodside Energy has completed the acquisition of the entire participating interest of oil company FAR in the offshore area in Senegal containing the Woodside-operated Sangomar development. The purchase price for FAR’s stake in the Rufisque Offshore, Sangomar Offshore and Sangomar Deep Offshore (RSSD) joint venture was $45 million, plus a working capital adjustment of approximately $167 million to reflect the acquisition as of 1 January 2020. The final payment to FAR, after adjustments and remedying FAR’s defaults under the joint operating agreement, was approximately $126 million. Additional payments of up to $55 million are contingent on future commodity prices and the timing of the first oil from the Sangomar project via a Floating Production Storage Offloading (FPSO) vessel to be supplied by MODEC.
The Sangomar development, consisting of the drilling and completion of 23 subsea development wells, will be Senegal’s first offshore oil development targeting the production of circa 231 million barrels of oil resources (P50 gross) via a FPSO. As a result of this acquisition, Woodside’s participating interest in the RSSD joint venture has increased to 82% for the Sangomar exploitation area and 90% for the remaining RSSD evaluation area. Woodside intends to sell down its participating interest in the RSSD joint venture to approximately 40-50% in the second half of 2021. The Sangomar Field Development Phase 1 will comprise a stand-alone FPSO with a production capacity of circa 100,000 barrels per day (bpd), 23 subsea wells and supporting subsea infrastructure.
Source: AEC&P
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