- Woodside (WPL) has finalised its stake in the Sangomar development in Senegal after securing the remaining interest from FAR (FAR)
- The remaining interest purchase increases its holding to a significant majority in the offshore development
- After adjustments, FAR received a final completion payment of approximately US$126 million (A$168 million) for its stake
- Woodside Acting Chief Executive Officer Meg O’Neill says the resource will deliver near-term production and revenue
- Woodside shares were down 2.16 per cent and trading at $23.55 at 12:25 pm AEST
Woodside (WPL) has finalised its stake in the Sangomar offshore development in Senegal after securing the remaining interest from FAR (FAR).
The remaining interest purchase set Woodside back some US$45 million (A$60 million) plus a working capital adjustment of approximately US$167 million (A$222 million).
After adjustments, FAR received a final completion payment of approximately US$126 million (A$168 million) for its stake, with the potential for additional payments of up to US$55 million (A$73 million) depending on future commodity prices and timing of first oil.
Woodside Acting Chief Executive Officer Meg O’Neill said the resource would deliver near-term production and revenue.
“The continued safe execution of the Sangomar project is a key priority for Woodside in 2021,” she said.
“A major milestone is expected tomorrow with the arrival of the Ocean BlackRhino drillship in preparation for commencement of development drilling next week.”
Work on the Sangomar Field Development commenced in early 2020, with Woodside targeting first oil production in 2023.
The development consists of the Rufisque Offshore, Sangomar Offshore and Sangomar Deep Offshore, which is held in via a joint venture between Capricorn Senegal Limited and Societé des Petroles du Sénégal.
Following today’s acquisition, Woodside holds an 82 per cent interest in the Sangomar exploitation area and 90 per cent in the remaining joint venture evaluation area.
Woodside shares were down 2.16 per cent and trading at $23.55 at 12:25 pm AEST.