Australian oil and gas producer Woodside Energy has issued notice that it will exercise its right to pre-empt the sale of FAR Limited’s interest in the Rufisque offshore, Sangomar offshore and Sangomar deep offshore (RSSD) contract area. FAR had recently agreed to sell the interest to ONGC Videsh Vankorneft.
FAR’s interest in the RSSD Joint Venture comprises 13.67% of the Sangomar exploration area and 15% of the remaining RSSD evaluation area. Upon government and FAR shareholder approval, Woodside’s operated interests will increase to 82% for the Sangomar exploration area and 90% for the remaining RSSD evaluation area.
Woodside’s proposed deal reflects that already agreed with ONGC and additionally proposes a $45 million payment to FAR; reimbursement of FAR’s share of working capital, from 1 January 2020 to completion; and entitlement to certain contingent payments up to $55 million.
“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,” states Woodside CEO, Peter Coleman. “We plan to commence development drilling at the Sangomar field next year as we progress the project to targeted first oil in 2023.”