Offshore staff
PERTH, Australia – Woodside Energy intends to pre-empt Cairn Energy’s recent agreement to transfer its interests offshore Senegal to Russian oil company Lukoil.
The transaction, announced late last month, covers Cairn’s 40% stake in the Rufisque Offshore, Sangomar Offshore and Sangomar Deep Offshore (RSSD) joint venture.
Under the terms of the RSSD joint operating agreement, Woodside said it would pay the same purchase price of $300 million plus working capital adjustments, and contingent payments of up to $100 million linked to the commodity price and timing of first oil from the deepwater Sangomar development.
At the same time, the other partners, Australia’s FAR and La Société des Pétroles Du Sénégal, also have the option to exercise their pre-emption rights in respect of the Cairn/Lukoil deal.
Woodside’s planned acquisition remains subject to government of Senegal approval, Cairn Energy shareholder approval, and other conditions.
On completion, the company would remain operator but with an interest of around 68%.
08/17/2020
