In a setback to ONGC Videsh Ltd, Australia’s Woodside Petroleum Ltd on Thursday stated it has exercised its proper to match an provide by the Indian business to get FAR Ltd’s stake in the USD 4.2 billion Sangomar oil project in Senegal.
OVL, the overseas investment arm of state-owned Oil and Natural Gas Corporation (ONGC), had final month reached a deal to get Australian firm FAR Ltd’s 13.67 per cent stake in the Sangomar project off Senegal’s shore for USD 45 million.
That deal was topic to a waiver of pre-emption rights by partners.
“Woodside has given notice exercising its right to pre-empt the sale by FAR Senegal RSSD SA (FAR) to ONGC Videsh Vankorneft Pte Ltd (a unit of OVL) of FAR’s entire participating interest in the Rufisque, Sangomar and Sangomar Deep (RSSD) joint venture,” the Australian business stated in a statement.
FAR has a 13.67 per cent interest in the Sangomar exploitation region and a 15 per cent interest in the remaining RSSD evaluation region.
This would have been the 1st acquisition by OVL in two-and-a-half-years.
But with Woodside working out the pre-emption rights, the deal is all but gone, a supply with information of the improvement stated.
Sangomar is a joint venture with Woodside Petroleum and Senegal’s national oil business, Petrosen.
FAR had stated final month it would exit the troubled USD 4.2 billion Sangomar project by promoting its stake to OVL.
“The acquisition is value-accretive for Woodside shareholders and results in a streamlined joint venture which will assist in our targeted sell-down in 2021,” Woodside Chief Executive Officer Peter Coleman stated in a statement.
Woodside’s stake in the Sangomar joint venture will improve to 90 per cent and the business will stay as an operator.
“The terms of Woodside’s acquisition will reflect those of the FAR/OVL transaction, including payment to FAR of USD 45 million; reimbursement of FAR’s share of working capital, including any cash calls, from 1 January 2020 to completion; and entitlement to certain contingent payments capped at USD 55 million,” it stated.
Woodside in August exercised its proper to match a USD 400 million provide by Russia’s Lukoil to get Cairn Energy’s stake in the RSSD project, creating it the biggest shareholder.
Woodside, the operator of the block, at present has a 68.33 per cent stake in the Sangomar field and 75 per cent interest in exploration region.
Petrosen holds an 18 per cent stake interest in Sangomar field and 10 per cent in the exploration region of the RSSD Block.
The Perth-headquartered Woodside stated its provide is topic to approval by the Senegal government and FAR shareholders.
It plans to commence drilling subsequent year in order to meet its targeted 1st oil in 2023.
The Sangomar field, at present beneath improvement, is positioned in the deep waters of Mauritania, Senegal, Gambia, Guinea-Bissau and Guinea-Conakry Basin (MSGBC Basin), Offshore Senegal, covering an region of 772 sq km and is planned to go on production in 2023 beneath Phase-1 improvement.
OVL has 39 projects in 19 nations spanning from Venezuela to New Zealand. It has so far invested USD 29.28 billion in projects abroad.
Its final acquisition was a 4 per cent stake in Lower Zakum Concession in the UAE in February 2018.