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    Woodside to Buy Conoco's Senegal Interests

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Summary

Australia’s Woodside has agreed to buy ConocoPhillips’ interests offshore Senegal where significant oil, but also gas, resources have been found.

by: Mark Smedley

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Natural Gas & LNG News, Africa, Corporate, Mergers & Acquisitions, Exploration & Production, Political, Ministries, News By Country, Senegal, United Kingdom, United States

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Woodside to Buy Conoco's Senegal Interests

Australia’s Woodside agreed July 14 to pay $350mn for all of ConocoPhillips’ interests in Senegal based on an effective date of January 1 2016, plus a completion adjustment of some $80mn.

Woodside will acquire a 35% working interest in a production-sharing contract (PSC) covering three exploration blocks offshore Senegal – Rufisque Offshore, Sangomar Offshore, and Sangomar Deep Offshore – and gets the option to operate the future development of any resource.

UK firm Cairn Energy operates the PSC which includes the SNE and FAN deep water oil discoveries. SNE is one of the largest global deep water oil discoveries since 2014, which Woodside estimates at 560mn b (at 100%). Other partners are Australia’s FAR and Senegal’s state oil firm PetroSen. Completion is subject to government approval and pre-emptions and targeting close by end-2016.

Map showing Rufisque Offshore, Sangomar Offshore, and Sangomar Deep Offshore blocks including the SNE and FAN fields offshore Senegal that are part of the July 14 transaction. The map also shows Kosmos-operated Ahmeyim, Guembeul and Teranga discoveries, and the AGC Profond block now operated by Woodside, none of which are related to this transaction (Map credit: Woodside/IHS)

Although resources found to date are predominantly oil, Cairn said in May that its sixth well, SNE-4, offshore Senegal yielded “multiple samples of gas, oil and water”, with “gas-bearing sands” similar to two previous wells. It said it would give an update on Senegal resource estimates in August.

Woodside CEO Peter Coleman said the July 14 deal “builds on our agreement to acquire a 65% interest in the AGC Profond exploration block located to the south in the Senegal-Guinea Bissau joint development zone and extends our regional focus in West Africa.” He said Woodside could bring its expertise in deep water drilling, development and operation of subsea infrastructure and FPSOs.

Conoco’s strategy and exploration executive vice president Matt Fox said: “This is an important milestone for ConocoPhillips as we progress our phased exit from deepwater exploration in West Africa.” Back in April, the US company acknowledged it was open to offers on its Senegal assets.

 

Mark Smedley

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