PERTH (miningweekly.com) – ASX-listed Woodside in December completed the acquisition of Capricorn Senegal Limited’s (Cairn's) entire participating interest in the Rufisque Offshore, Sangomar Offshore and Sangomar Deep Offshore (RSSD) joint venture (JV), in Senegal.

The purchase price was $300-million plus a working capital adjustment of approximately $225-million, which included a reimbursement of Cairn’s development capital expenditure incurred since January 1, 2020.

Additional payments of up to $100-million would be contingent on commodity prices and timing of first oil.

Woodside CEO Peter Coleman said in December that the acquisition of Cairn’s interest in the Sangomar project area offshore Senegal was value accretive for shareholders.

“The development of Sangomar is being executed according to schedule. The Senegal team recently achieved another milestone, with the award of the contract for the operations and maintenance of the floating production storage and offloading vessel which is targeted for delivery and first oil production in 2023.

“The completion of the transaction with Cairn has simplified the structure of the joint venture ahead of our planned equity sell-down in 2021. The Sangomar development is an attractive, de-risked asset that offers near-term production to potential buyers,” he said.

Woodside’s participating interest in the RSSD JV has increased to approximately 68.33% for the Sangomar exploitation area and to 75% for the remaining RSSD evaluation area.

Woodside’s interest will further increase to 82% for the Sangomar exploitation area and to 90% for the remaining RSSD evaluation area, after Woodside in December exercised its rights over JV partner FAR’s interest in the project.

Woodside’s terms of its acquisition of FAR’s 13.67% interest in the Sangomar exploitation area and a 15% interest in the remaining RSSD evaluation area, would reflect those of an earlier offer by ONGC Videsh Vankorneft, including a $45-million transaction payment, reimbursing FAR’s share of working capital, and entitlement to certain contingent payments capped at $55-million.

Woodside will remain operator of the JV.