Offshore staff
MELBOURNE, Australia – FAR is working with Woodside Energy and other partners in the Sangomar project offshore Senegal, in order to assess potential options due to the current oil price and economic environment.
They will examine how costs can be reduced, expenditure delayed or both and any impact on the timeline to first oil.
Offshore Gambia to the south, FAR operates blocks A2 and A5, and been preparing to drill an exploration well in the second half of this year.
But in light of the spread of COVID-19 pandemic, the risk to FAR personnel and contractors, and recognition that international supply of services is currently uncertain, drilling plans have been put on hold.
Other work in the block will be adjusted to suit the business requirements and all license obligations will continue, in consultation with partner Petronas and the government of The Gambia.
The partners will seek to reactivate the drilling project when it is safe and sensible to do so, FAR said, adding that there is no obligation under the license terms to drill until 3Q 2021.
At the same time, the company warned, its discussions with financiers are being compromised in the present market conditions, and the disruptions caused by COVID-19 pandemic and the oil price are impacting its debt process.
03/25/2020
