PERTH (miningweekly.com) – Australian energy major Woodside Energy has completed the acquisition of fellow-listed FAR’s interest in the Rufisque offshore, Sangomar offshore and Sangomar deep offshore (RSSD) contract area, offshore Senegal.
Woodside earlier this year exercised its pre-emptive rights over FAR’s interest in the asset, after that company last year announced that it had entered into a sale and purchase agreement for its interest in the RSSD with ONGC Videsh Vankorneft.
Woodside on Thursday confirmed the $45-million purchase price, which included a working capital adjustment of some $167-million to reflect the acquisition date of January 1.
The final completion payment to FAR, after adjustments and remedying of FAR’s defaults under the joint operating agreement, was some $126-million, with a further $55-million of additional payments contingent on future commodity prices and the timing of first oil.
“The continued safe execution of the Sangomar project is a key priority for Woodside in 2021. A major milestone is expected tomorrow with the arrival of the Ocean BlackRhino drillship in preparation for commencement of development drilling next week,” said Woodside acting CEO Meg O’Neill.
“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.
“Sangomar is a world-class resource which will deliver near-term production and revenue for Woodside. We are targeting first oil in 2023,” she said.
As a result of this acquisition, Woodside’s participating interest in the RSSD joint venture has increased to 82% for the Sangomar exploitation area and to 90% for the remaining RSSD evaluation area.
Woodside intends to sell down its participating interest in the RSSD joint venture to approximately 40% to 50% in the second half of 2021.
The Sangomar Field Development Phase 1 will comprise a standalone floating production and storage operation with a production capacity of approximately 100 000 bl/d, 23 subsea wells and supporting subsea infrastructure.