FAR Limited has announced the completion of the sale of its entire interest in the Senegal RSSD joint venture to Woodside Energy (Senegal) BV. In line with guidance given at the FAR Annual General Meeting, and as a result of completion, FAR has received US$126 million from Woodside. Additional payments to FAR, up to US$55 million, are contingent on future oil price and timing of first oil, targeted for 2023.
As reported in our announcement dated 12 May 2021, now that the sale of FAR’s interest in the Senegal RSSD joint venture has completed, FAR can commence discussions with ASX on reinstating FAR’s securities and will provide an update to the market within the next seven days.
In December 2020 FAR Ltd received notification from Woodside Energy (Senegal) B.V that it has exercised its pre-emptive right to acquire FAR’s interest in the Senegal RSSD project and soon after the FAR group executed a Sale and Purchase Agreement with Woodside
On the 28th April 2021, FAR shareholders approved the sale of the Company’s interest in the RSSD project to Woodside and advised we were to continue to work with Woodside to finalise the remaining conditions precedent and completion tasks for the sale. On the 31 May 2021,FAR announced that it had satisfied the conditions precedent for the sale of its interest in the RSSD project relating to the termination of a third-party contract. FAR also advised that it had received formal notification from the Senegalese Minister of Petroleum and Energies that it approves the transfer of FAR’s RSSD interest to Woodside.
FAR (15% interest) made two world class oil discoveries in the FAN-1 and the SNE-1 wells, in the Sangomar Deep portion of its offshore Senegal PSC in late 2014. These two “basin opening” discoveries, dramatically changed global oil industry perceptions of the region’s petroleum prospectivity, transforming Senegal into one of the world’s most sought after exploration destinations. The Rufisque, Sangomar and Sangomar Deep (RSSD) offshore Production Sharing Contract (PSC) covers an area of approximately 7,490 kilometres² over the shelf, slope, and basin floor of the Senegalese portion of the productive Mauritania-Senegal-Gambia-Guinea-Bissau-Conakry Basin. The Sangomar Field (formerly SNE) has subsequently been appraised with 7 successful wells over two drilling campaigns, completed in mid 2017. The appraisal proved the size and deliverability objectives, FID was reached in January 2020 and first oil is targeted for 2023.
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