Woodside completes Sangomar acquisition
Australia's Woodside has completed the acquisition of the entire participating interest of Sydney-listed Far in the Rufisque, Sangomar and Sangomar Deep (RSSD) joint venture off Senegal, the company said on July 7.
The purchase price was $45mn plus a working capital adjustment of approximately $167mn to reflect the acquisition effective date of January 1, 2020. The final completion payment, after adjustments and remedying of Far’s defaults under the joint operating agreement, was approximately $126mn, Woodside said. Additional payments of up to $55mn are contingent on future commodity prices and timing of first oil.
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Far agreed to sell its 13.7% interest in RSSD and a 15% interest in the Sangomar exploitation area to Woodside in January. Lukoil later offered to buy Far if it axed the Woodside deal, but the Russian company later withdrew its bid. Private investment fund Remus Horizons likewise said in April it would not pursue a proposed takeover of Far. Far's shareholders approved the Woodside transaction in late April.
“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,” Woodside acting CEO Meg O’Neill said. The joint venture is targeting the first oil in 2023.
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 said it intends to sell down its participating interest in the RSSD joint venture to approximately 40-50% in the second half of 2021.
The Sangomar field development phase 1 will comprise a stand-alone FPSO with a production capacity of approximately 100,000 barrels/day, 23 subsea wells and supporting subsea infrastructure.