Société des Pétroles du Sénégal (PETROSEN) has increased its stake in the the Rufisque Offshore, Sangomar Offshore and Sangomar Deep Offshore joint venture by 8% from 10%.
The state hydrocarbon company will reimburse the other RSSD ventures their pro-rata share of the 8% expenses incurred to the Sangomar Exploitation Area since January 8 2020.
Woodside Energy is the operator of the field with a 31.89% interest, Capricorn Senegal Limited (a subsidiary of Cairn Energy PLC) holds 36.44%, FAR Ltd recently held 15% but is now 13.67% due to the increase in stake by Petrosen who now holds 18%.
Last week, Cairn Energy sale of its interest to Russian giant, Lukoil, was blocked by the operator. Woodside invoked the first right of refusal and will be purchasing Cairn Energy’s interest by paying $300 million upfront, plus working capital adjustments which will include the reimbursement of Cairn’s development capital expenditure incurred since January 1st 2020.
Work on the Sangomar Field Development started at the beginning of 2020 and the first oil production is projected to be in 2023.
Reacting to the development by Petrosen and the new change in its stake, the Managing Director of FAR, Cath Norman said, “FAR has long planned for Petrosen’s interest accretion and it has been reflected in our modelling and communications. The FAR Board continues to pursue a sale of all or part of FAR’s stake in lieu of an alternate financing option.”
FAR Limited had earlier announced a 20 per cent salary reduction for all senior executives and Non-Executive Directors effective July 1, 2020, and made staff redundancies. The company was willing to sell some or all of its assets in Senegal https://ibekachikwu.com/far-senegal-cuts-staff-salaries-and-may-consider-selling-part-or-all-of-its-assets-in-senegal/. The increase in Petrosen’s interest and the reduction in FAR’s comes at a good time for the company that has struggled to pay its part of the cost of the project due to the current realities of the market.
The Sangomar field (formerly the SNE field), containing both oil and gas, is located 100 kilometres south of Dakar.
/strong%20has%20increased%20its%20stake%20in%20the%20the%20Rufisque%20Offshore,%20Sangomar%20Offshore%20and%20Sangomar%20Deep%20Offshore%20joint%20venture%20by%208%%20from%2010%.The%20state%20hydrocarbon%20company%20will%20reimburse%20the%20other%20RSSD%20ventures%20their%20pro-rata%20share%20of%20the%208%%20expenses%20incurred%20to%20the%20Sangomar%20Exploitation%20Area%20since%20January%208%202020.strongWoodside%20Energy/strong%20is%20the%20operator%20of%20the%20field%20with%20a%2031.89%%20interest,%20strongCapricorn%20Senegal%20Limited/strong%20(a%20subsidiary%20of%20Cairn%20Energy%20PLC)%20holds%2036.44%,%20FAR%20Ltd%20recently%20held%2015%%20but%20is%20now%2013.67%%20due%20to%20the%20increase%20in%20stake%20by%20strongPetrosen/strong%20who%20now%20holds%2018%.Last%20week,%20Cairn%20Energy%20a%20href=https://ibekachikwu.com/senegal-lukoil-acquires-stake-to-become-an-operator-in-the-sangomar-oilfield/sale%20of%20its%20interest/a%20to%20Russian%20giant,%20strongLukoil/strong, was%20blocked%20by%20the%20operator.%20Woodside%20invoked%20the%20first%20right%20of%20refusal%20and%20will%20be%20purchasing%20Cairn%20Energy's%20interest%20by%20paying%20$300%20million%20upfront,%20plus%20working%20capital%20adjustments%20which%20will%20include%20the%20reimbursement%20of%20Cairn's%20development%20capital%20expenditure%20incurred%20since%20January%201st%202020.Work%20on%20the%20Sangomar%20Field%20Development%20started%20at%20the%20beginning%20of%202020%20and%20the%20first%20oil%20production%20is%20projected%20to%20be%20in%202023.a%20href=https://ibekachikwu.com/wp-content/uploads/2020/08/548e6752-fdbe-4d85-a780-0f037f2fabbe.jpgimg%20class=size-full%20wp-image-2405%20alignleft%20src=https://ibekachikwu.com/wp-content/uploads/2020/08/548e6752-fdbe-4d85-a780-0f037f2fabbe.jpg%20alt=%20width=200%20height=200%20//aReacting%20to%20the%20development%20by%20strongPetrosen/strong%20and%20the%20new%20change%20in%20its%20stake,%20the%20Managing%20Director%20of%20strongFAR/strong,%20Cath%20Norman%20said,%20em“FAR%20has%20long%20planned%20for%20Petrosen’s%20interest%20accretion%20and%20it%20has%20been%20reflected%20in%20our%20modelling%20and%20communications.%20The%20FAR%20Board%20continues%20to%20pursue%20a%20sale%20of%20all%20or%20part%20of%20FAR’s%20stake%20in%20lieu%20of%20an%20alternate%20financing%20option.”/emFAR%20Limited%20had%20earlier%20announced%20a%2020%20per%20cent%20salary%20reduction%20for%20all%20senior%20executives%20and%20Non-Executive%20Directors%20effective%20July%201,%202020,%20and%20made%20staff%20redundancies.%20The%20company%20was%20willing%20to%20sell%20some%20or%20all%20of%20its%20assets%20in%20Senegal%20a%20href=https://ibekachikwu.com/far-senegal-cuts-staff-salaries-and-may-consider-selling-part-or-all-of-its-assets-in-senegal/https://ibekachikwu.com/far-senegal-cuts-staff-salaries-and-may-consider-selling-part-or-all-of-its-assets-in-senegal//a.%20The%20increase%20in%20Petrosen’s%20interest%20and%20the%20reduction%20in%20FAR’s%20comes%20at%20a%20good%20time%20for%20the%20company%20that%20has%20struggled%20to%20pay%20its%20part%20of%20the%20cost%20of%20the%20project%20due%20to%20the%20current%20realities%20of%20the%20market.The%20Sangomar%20field%20(formerly%20the%20SNE%20field),%20containing%20both%20oil%20and%20gas,%20is%20located%20100%20kilometres%20south%20of%20Dakar.a%20href=https://ibekachikwu.com/wp-content/uploads/2020/07/c015d393-42fe-429f-bacc-c6b6172938cb.jpgimg%20class=size-medium%20wp-image-2232%20aligncenter%20src=https://ibekachikwu.com/wp-content/uploads/2020/07/c015d393-42fe-429f-bacc-c6b6172938cb-300x249.jpg%20alt=%20width=300%20height=249%20//a){kind=link}