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Talk about being haunted by the past. FAR Limited (ASX:FAR) has received notice from supermajor Woodside (ASX:WDS) that it may still owe the latter $6.8 million for historical expenditure in Senegal.
Woodside has long been focusing on the West African nation and FAR Ltd plays a fairly minor part overall, but it’s still involved enough to remain wrapped up in the project from which first oil is set for sale this June.
But now the government of Senegal says it doesn’t have enough information to sign off on cost recovery for Woodside back in the 2010s associated with exploration and development work.
FAR says it has received word from Woodside that it continues to liaise with the Senegalese government and that it may be on the hook to Woodside for the $6.8M which, under a contract with Woodside, makes it liable to pay the supermajor any cash unrecoverable.
As FAR Limited noted on Friday, however, this was “more than 11 years ago” – and it’s letting Woodside know that too.
In between the lines, the company’s communications seem to suggest the microcap is being pointed at for a lack of information which, supposedly, the relevant energy ministry in Senegal is yearning for.
FAR last traded at 57cps through Friday morning.
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