- Woodside Petroleum (WPL) has announced the Sangomar Oil Field Development has entered the execute phase
- On Thursday the Senegalese government approved the joint venture plan and granted exploitation authorisation
- Woodside has now executed contracts to purchase the offshore facility as well as contracts for drill rigs and the subsea production systems
- All regulatory approval, including final execution of the Host Government Agreement with the Government of Senegal, has now been received
- Joint venture partners for Sangomar development are Cairn Energy Senegal, Far Limited and the Senegal’s national oil company Petrosen
- Woodside shares gained 0.73 per cent today to be worth $35.86 each at market close
Woodside Petroleum (WPL) has today announced its Sangomar Oil Field Development has entered the execute phase.
On January 9, the Senegalese government approved the joint venture development plan and granted the exploitation authorisation.
Project operator, Woodside has now executed several key contracts for the development.
Firstly, Woodside has signed off on a contract with MODEC to purchase the floating production storage and offloading facility. This facility will have an oil processing capacity of 100,000 barrels of oil per day.
In addition, Woodside has executed a contract with Subsea Integration Alliance, a non-incorporated alliance between Subsea 7 and OneSubsea.
Subsea Integration Alliance is responsible for the construction and installation of the integrated subsea production systems and subsea umbilicals, risers and flowlines.
Offshore drilling contractor, Diamond Drilling has inked two well-based contracts with Woodside for the drill rigs Ocean Black Rhino and Ocean Black Hawk.
Woodside CEO Peter Coleman described the development as key part to the company’s growth strategy.
“We look forward to progressing the project towards first oil in early 2023 and expect that our experience in offshore FPSO developments will support its delivery on cost and schedule.”
“We are grateful for the ongoing support of the Government of Senegal and will be working with all stakeholders to ensure that the country’s first oil project delivers enduring benefits to its people,” he said.
The first phase of development will target an estimated 231 million barrels of oil resources. This will be from the lower, less complex reservoirs as well as an initial pilot phase in the upper reservoirs.
Currently, Woodside holds 35 per cent interest in the Rufisque Offshore, Sangomar Offshore and Sangomar Deep Offshore joint venture.
Cairn Energy Senegal holds 40 per cent interest, Far Limited holds 15 per cent and Senegal’s national oil company Petrosen holds 10 per cent.
Woodside shares gained 0.73 per cent today to be worth $35.86 each at market close.