Far Strikes Senegal Sale Deal with Woodside

Far Ltd has signed a sales and purchase agreement to transfer its interests in Senegal to fellow Australian explorer Woodside Energy, the company said on January 20.

India's ONGC launched a bid in mid-November to buy Far's 13.7% interest in the offshore Sangomar exploitation zone containing the Sangomar field and its 15% position in the surrounding Rufisque, Sangomar and Sangomar Deep (RSSD) contract zone. But Woodside, a shareholder in the projects, used its pre-emptive right to buy the shares, matching ONGC's price.

Woodside will pay Far $45mn and reimburse its share of working capital from January 1, as well as make contingent payments up to a $55mn cap. Far shareholders will decide on the transaction on February 18.

The sale could be up-ended, however, as investment fund Remus Horizons has made a non-binding bid to acquire Far that is conditional on it rejecting the Woodside offer.

Woodside raised its interests in the Sangomar exploitation zone and the RSSD area to 68.3% and 75% in December after acquiring Cairn's positions, again by using its pre-emptive right to match an offer by Russia's Lukoil. Senegal's state-owned Petrosen is also a project partner.

The group took a final investment decision on the development in January. Production is due to start in 2023 and reach 100,000 barrels/day. While a mostly oil-focused project, the partners also want to transport its gas to shore.