Lukoil set to join deepwater Sangomar project offshore Senegal

Offshore staff

EDINBURGH, UK – Cairn has agreed to sell its 40% interest in the Rufisque Offshore, Sangomar Offshore and Sangomar Deep Offshore contract area off Senegal to Lukoil.

Under the proposed transaction, Lukoil will pay up to $400 million and will also reimburse Cairn for capex incurred on the deepwater Sangomar oilfield development since Jan. 1, 2020.

Cairn, which discovered Sangomar and the FAN field before relinquishing operatorship of the contract area to Woodside Energy, expects the deal to go through during the fall.

The blocks cover an area of 2,212 sq km (854 sq mi), 80 km (50 mi) from the shore and in water depths of 800-2,175 m (2,625-7,134 ft). Woodside and its partners took a final investment decision on the FPSO-based Sangomar development at the start of this year.

Lukoil estimates recoverable hydrocarbon reserves at around 500 MMboe, with start-up expected in 2023. Other partners are Australian independent FAR and state-owned Petrosen.

Simon Thomson, Cairn’s chief executive, said: “We are proud of what Cairn has achieved in Senegal. Our discoveries were the country’s first deepwater wells and opened up a new basin play on the Atlantic Margin.”

Vagit Alekperov, president of Lukoil, added: "Entering the project with already explored reserves at early stage of their development is fully in line with our strategy and allows us to reinforce our presence in West Africa.

“Joining the project with qualified international partners will allow us to gain additional experience in development of offshore fields in the region.”

07/27/2020