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Woodside will fork out $400 million to block Lukoil from becoming a partner in the Sangomar field in Senegal

Woodside will fork out $400 million to block Lukoil from becoming a partner in the Sangomar field in Senegal

Canberra, August 17 - Neftegaz.RU. Australia's Woodside, the operator of the project, has blocked Cairn's stake sale in the $4.2B Sangomar development off Senegal to Russia's Lukoil, by exercising its pre-emption rights.

The $4.2 billion FID on the Sangomar offshore oil field was made at the start of 2020 and the field development has started.

Woodside will pay $300 million upfront plus working capital adjustments, including reimbursement of Cairn’s development capital expenditure incurred since 1 January 2020.

The company stated today that Woodside would also pay contingent payments of up to $100 million linked to commodity price and the timing of first oil.



“Progressing the Sangomar Field Development and delivering targeted first oil in 2023 is an important part of Woodside’s growth strategy. Increasing our interest maintains the early momentum achieved since achieving final investment decision with our joint venture partners earlier this year and will simplify the equity structure for the RSSD joint venture," Woodside CEO Peter Coleman said.

“We look forward to completing the transaction with Cairn and working with all stakeholders, including potential new joint venture partners, to successfully deliver Senegal’s first oil project,” he noted.

The recoverable hydrocarbon reserves of the Sangomar field total approximately 500 million boe. The field is planned to be brought online in 2023 via a Modec-supplied FPSO.

To read the news in Russian.