Russian multinational Lukoil will not proceed with its non-binding bid to acquire FAR Limited’s stake in Senegal’s Rufisque, Sangomar and Sangomar Deep (RSSD) project, according to a statement by the Australian oil and gas explorer.
FAR had received a conditional, non-binding indicative proposal from PJSC Lukoil in February to acquire its shares in the Sangomar field development for 2.2c per share. That said, FAR had made clear that the proposal was not legally binding and was still subject to corporate due diligence by FAR and final approval from Lukoil’s Board of Directors.
Expected to come online by early 2023, the RSSD development comprises a floating production storage and offloading unit with 23 subsea wells and supporting subsea infrastructure, resulting in a production capacity of 100,000 barrels per day.
FAR has convened a shareholders meeting on April 15 to consider approving the sale of its interest in the RSSD project to Australia’s Woodside Energy. Should a takeover offer be made by Remus Horizons PCC Limited – which had previously submitted a non-binding proposal for 2.1c per share last December – or by an alternative entity, FAR’s directors will update shareholders accordingly and may reconsider their recommendation.