Page 18 - FSUOGM Week 31

FSUOGM PROJECTS & COMPANIES FSUOGM

Woodside may pre-empt sale of

Senegal block stake to Lukoil

SENEGAL AUSTRALIA’S Woodside Energy indicated last is interested in increasing its stake in Sangomar
week that it might seek to block Russia’s Lukoil and may prefer a different JV makeup, so [it] may
First oil from the from acquiring a stake in RSSD, the consortium seek to pursue rights to pre-empt or challenge
Sangomar block is set up to develop the Sangomar block offshore the sale,” he commented.
anticipated in 2023. Senegal. Cairn is not the only member of the RSSD
Woodside, the operator of RSSD, informed venture that is seeking to unload its stake in
Reuters that it had not ruled out exercising Sangomar. Australia’s FAR has announced plans
its right to pre-empt the sale of the stake now to sell its 15% holding but has not named any
owned by Cairn Energy (UK). “Woodside will potential buyers. When contacted by Reuters, it
consider all its options,” a company spokes- declined to say whether it had held any discus-
woman said. sions with Lukoil.
Cairn’s plan is “subject to joint venture (JV) The RSSD joint venture also includes Pet-
and government approvals,” she added. She was roSen, the national oil company (NOC) of Sene-
speaking after Lukoil revealed that it had offered gal, which has a 10% stake. PetroSen is not likely
to pay $400mn offer for a 40% stake in Sangomar. to give up its holdings in the project.
If Woodside pre-empts the sale of Cairn’s The Sangomar block includes three separate
holdings in the block, it will increase its stake fields – Rufisque, Sangomar Offshore and San-
from 35% to 75%. In excluding Lukoil, it may gomar Deep Offshore – that give the RSSD joint
also manage to avoid US sanctions on Russia. venture its name. Woodside and its partners dis-
The current sanctions regime provides for Wash- covered oil there in 2014 and have said that the
ington to impose penalties on companies that block holds around 645mn barrels of oil equiv-
join Lukoil and other major Russian operators alent in recoverable reserves, including 485mn
for deepwater oil development projects. barrels of crude oil and 160mn boe of natural
Saul Kavonic, an analyst for Credit Suisse, gas.
told Reuters last week that he did expect the Aus- RSSD has said that it hopes to begin extract-
tralian company to exercise its option to buy out ing oil from Sangomar in 2023. The cost of devel-
its non-operating partner. “We think Woodside oping the block is likely to exceed $4.2bn. ™

P18 www. NEWSBASE .com Week 31 05•August•2020