Image: Offshore Engineer
Woodside Petroleum, Australia’s largest independent oil and gas company, has finalized the purchase of a 13.67% stake in the 100,000 b/d Sangomar crude project offshore Senegal from Australian independent Far Limited.
The Sangomar field contains both oil and gas and is located 100Km south of Dakar, Senegal. Work on the project started in early 2020 and first oil production is aimed for 2023.
Following the purchase, Woodside’s stake in the 4.6 billion dollar project is now 82%. The operating company stated that the purchase price was $45 million plus a working capital adjustment of around $167 million to reflect the purchase effective date of 1 January 2020. Woodside added that the final completion payment to Far, after adjustments and remedying Far’s defaults under the joint operating agreement, was about $126 million and that additional payments of up to $55 million are contingent on future commodity prices and timing of first oil.
Woodside intends to sell its participating interest in the Sangomar project to between 40% and 50% in the second half of 2021. The remaining 18% of Sangomar is owned by Senegal state-controlled energy firm Petrosen.
Woodside’s Acting CEO Meg O’Neill said: “The continued safe execution of the Sangomar project is a key priority for Woodside in 2021. A major milestone is expected with the arrival of the Ocean BlackRhino drillship in preparation for commencement of development drilling next week.
The construction of the floating production storage and offloading facility, which is a converted oil tanker, is well underway and we are receiving delivery of subsea equipment in Senegal.”