PERTH (miningweekly.com) – The government of Senegal has increased its stake in the Sangomar offshore and Sangomar deep offshore (RSSD) exploitation area from 10% to 18%.
ASX-listed FAR said on Thursday that the State oil company Petrosen’s decision to increase its stake in the RSSD project had reduced its own stake in the project from 15% to 13.67%.
Petrosen is required to reimburse the other joint venture (JV) partners, including oil and gas major Woodside, their pro-rata share of the 8% of expenses relating to the Sangomar exploitation area, incurred since January 8.
“FAR has long planned for Petrosen’s interest accretion and it has been reflected in our modelling and communications. The FAR board continues to pursue a sale of all or part of FAR’s stake in lieu of an alternate financing option,” said FAR MD Cath Norman.
Woodside recently exercised its pre-emptive rights over JV partner Cairn Energy’s entire participating interest the RSSD, stopping a deal with Russian oil producer LukOil.
Woodside matched the LukOil offer, which included an up-front cash purchase price of $300-million plus working capital adjustments, including reimbursement of development capital expenditure incurred since January and a contingent payment of up to $100-million linked to commodity prices and the timing of first oil.