PERTH (miningweekly.com) – Africa-focused FAR on Wednesday told shareholders that it was continuing to investigate selling off a part of its 15% interest in the Rufisque, Sangomar and Sangomar Deep (RSSD) joint venture (JV), offshore Senegal, while also looking to cut corporate costs further.
FAR on Wednesday told shareholders that the company’s Senegalese subsidiary had received a notification from RSSD JV operator Woodside that the company was in default for not paying the most recent development cash call.
FAR noted that over the past several months, Woodside had been undertaking a programme to rescope, reschedule and reprice the RSSD project in order to reduce the capital expenditure, with FAR taking the strategic decision to preserve the company’s cash while it awaited clarity on the project capital cost amendments.
Under the default provisions, FAR had six months in which to fulfill its financial obligations, or risk forfeiting its participating interest without compensation.
FAR on Wednesday said that the company had now implemented a further round of cost cutting, consisting of staff redundancies and all senior executives and nonexecutive directors accepting a 20% cut to their fees, effective from July.
The board will also review this fee and salary reduction at least quarterly.
The latest round of cost cutting comes after a substantially reduced contractor headcount in April.