Australian vitality firm Woodside has entered right into a binding sale and buy settlement to accumulate Cairn’s whole collaborating curiosity within the Rufisque Offshore, Sangomar Offshore and Sangomar Deep Offshore (RSSD) three way partnership.

Woodside mentioned
on Friday that the completion of the acquisition was topic to Government of
Senegal approval, Cairn Energy shareholder approval, and different customary
circumstances precedent.

According to
the corporate, completion of the purchase is focused for the fourth quarter of 2020.

Following
completion, Woodside’s fairness curiosity will improve to roughly 68.33 per
cent within the Sangomar exploitation space and 75 per cent for the remaining RSSD
analysis space. Woodside will stay the operator.

To remind, the binding sale and buy settlement observe Woodside exercising its rights to dam the sale of Cairn’s stake in RSSD to Russia’s Lukoil on 17 August 2020.

As a end result, per the RSSD joint working settlement, the phrases of Woodside’s acquisition of Cairn’s whole collaborating curiosity replicate these of the Cairn – Lukoil transaction.

Woodside
pays $300 million upfront plus working capital changes, together with
reimbursement of Cairn’s improvement capital expenditure incurred since 1
January 2020.

The
Australian firm would additionally pay contingent funds of as much as $100 million
linked to commodity worth and the timing of first oil.

To remind, oil
and fuel firm FAR was additionally provided a pre-emptive proper over the sale of Cairn’s
curiosity to Lukoil. FAR suggested Cairn that FAR doesn’t intend to pre-empt the
transaction or object to the proposed switch of Cairn’s working curiosity in
the RSSD Contract Area to Lukoil.

It is value noting that the $four.2 billion FID on the Sangomar offshore oil area was made firstly of 2020 and the sector improvement has began.

The undertaking stays on monitor for first oil in 2023 through a Modec-supplied FPSO whatever the coronavirus pandemic. The recoverable reserves of Sangomar area stand at round 500 million boe.

The put up Woodside buys Cairn’s Sangomar stake appeared first on Offshore Energy.

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