Page 14 - AfrOil Week 46

AfrOil INVESTMENT AfrOil

FAR to sell Sangomar holdings to OVL

SENEGAL AUSTRALIA’S FAR Ltd has agreed to sell its another upstream asset.
minority stake in RSSD, the joint venture set up Cath Norman, the managing director of
to develop the Sangomar block offshore Senegal, FAR, commented: “We are pleased to bring
to India’s ONGC Videsh Ltd (OVL). this deal to our shareholders and wish to thank
In a statement dated November 11, the ONGC for their interest and co-operation over
Australian firm said that OVL’s ONGC Videsh the last few months. ONGC is a very reputable
Vankorneft subsidiary had agreed to pay $45mn group with global exploration and production
for a 13.67% stake in the Sangomar field and a interests. We believe they will be a valuable part-
15% stake in the other areas of RSSD’s licence ner for Petrosen and Woodside going forward.”
area. As additional consideration, the Indian The other shareholders in RSSD are
company will reimburse FAR with $66.58mn for Woodside Energy of Australia and Petrosen,
its share of contribution to the project’s working the national oil company (NOC) of Senegal.
capital since January 1, 2020. This reimburse- Woodside, the operator, now holds a majority
ment will allow FAR to make up for its failure to interest in the joint venture following its deci-
respond to previous cash calls, which led to the sion to pre-empt efforts by Cairn Energy (UK)
accrual of $29.6mn in debts to the joint venture. to sell its stake to Lukoil (Russia).
The Australian company will also be entitled The Sangomar block includes three separate
to additional consideration of $55mn once pro- fields – Rufisque, Sangomar Offshore and San-
duction begins at the licence area. Contingent gomar Deep Offshore – that give the RSSD joint
payments will terminate three years after the venture its name. Oil was discovered at the block
first sale of oil from the block, a period that is in 2014, and RSSD has determined that it holds
expected to end on or after December 31, 2027, an estimated 645mn barrels of oil equivalent
the statement noted. Sangomar is currently (boe) in recoverable reserves, including 485mn
slated to come on stream in mid-2023, it added. barrels of crude oil and 160mn boe of natural
The deal has yet to be approved by FAR’s gas. ™
shareholders, and the other investors in the
RSSD joint venture have not yet said whether
they might pre-empt the planned sale to OVL.
Additionally, the Australian company will have
to secure the approval of Senegal’s Ministry of
Petroleum and Energies to proceed. In the state-
ment, it said it anticipated reaching this mile-
stone in January 2021.
FAR also said it expected the deal with OVL
to improve its financial position, as it could
not meet its financial commitments to RSSD
beyond December 2020. It also stated that the
sale would leave it in an estimated cash position
of around $130mn, sufficient to cover the costs
of proceeding with exploration at its licence
areas in Guinea-Bissau and Gambia and to sup-
port a new long-term strategic goal of acquiring The Sangomar block holds about 645mn barrels of oil equivalent (Image: FAR)

Perenco seeks majority stake in CI-11

CÔTE D’IVOIRE PERENCO (UK/France) is reportedly looking The sources did not say how much Perenco
to assume control of CI-11, a shallow-water might be willing to pay for this asset. They did
block offshore Côte d’Ivoire. state, though, that the parties were discussing
Two sources familiar with the matter told a deal that would see each member of the con-
Bloomberg earlier this week that Perenco was in sortium handing part of its stake over to the
talks with the consortium that holds the licence company.
for the block on the purchase of a majority As of press time, the report had not been con-
stake equivalent to around 51% of total equity. firmed. When contacted by Bloomberg, Perenco
The Anglo-French company is also looking to and Petroci, the national oil company (NOC) of
assume the operatorship of CI-11, they said. Côte d’Ivoire, declined to comment.

P14 www. NEWSBASE .com Week 46 18•November•2020