Woodside completes the acquisition of FAR’s stake in the Sangomar project
Woodside Energy (Senegal) BV has completed the acquisition of the entire stake of FAR Senegal RSSD SA (FAR) in the joint venture Rufisque Offshore, Sangomar Offshore and Sangomar Deep Offshore (RSSD).
The purchase price was US $ 45 million plus a working capital adjustment of approximately US $ 167 million to reflect the effective date of the acquisition of January 1, 2020. Final payment to FAR , after adjustments and repair of FAR faults under the joint operating agreement, was $ 126 million. Additional payments of up to US $ 55 million depend on future commodity prices and the timing of the first oil.
As a result of this acquisition, Woodside’s interest in the RSSD joint venture increased to 82% for the Sangomar operating area and 90% for the remaining assessment area of ââRSSD.
Woodside intends to sell its roughly 40-50% stake in the RSSD joint venture in the second half of 2021.
Phase 1 of the development of the Sangomar field will include a stand-alone FPSO with a production capacity of approximately 100,000 bpd, 23 subsea wells and supporting subsea infrastructure.
Woodside Acting CEO Meg O’Neill said: âThe 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 oil rig Ocean BlackRhino in preparation for the start of development drilling next week. .
âThe construction of the floating production storage and unloading facility, which is a converted tanker, is well advanced and we are receiving the delivery of subsea equipment to Senegal.
âSangomar is a world-class resource that will provide short-term production and income for Woodside. We are aiming for the first oil in 2023, âshe said.
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