Senegal

Capricorn Seeks additional contingent payment From Asset in Senegal


Published: Saturday October 5, 2024
By: Oilfield Africa Review

Capricorn has been notified by Woodside Energy that the production condition under the sale and purchase agreement related to the disposal of its production sharing contract (PSC) interests in Senegal has now been met as there has been at least 30 days of continuous production on the asset.

As previously noted, Capricorn may be entitled to an additional contingent payment of either $25m or $50m if the average Brent oil price during the first six months of production exceeds the $55 per barrel or $60 per barrel thresholds. Production commenced on 10 June 2024 with Brent oil price averaging around $80/bbl to date. The contingent payment is anticipated in early 2025.

As also previously disclosed, Woodside as recipient of the tax assessment related to Capricorn’s disposal of the assets in 2020 has commenced an action in the High Court of Dakar disputing this assessment in Q3 2024. Woodside is also preserving its rights under its Host Government Agreement and international treaties concerning this matter.

Capricorn remains committed to returning any available proceeds of this payment to its shareholders. The precise amount of distribution remains subject to any tax obligations ultimately due in Senegal.

Sponsored Partners

Discover our premium partners and explore their innovative solutions in the industry

Company News
Woodside to Explore Strategic Collaboration Across LNG Value Chain
Wednesday July 9, 2025
Côte d'Ivoire
Côte d’Ivoire Sets Ambitious Domestic Gas Utilization Road Map
Wednesday July 9, 2025
Mozambique
Samsung Heavy to Build an Offshore Production Facility in Africa
Tuesday July 8, 2025