Woodside Energy has completed the acquisition of the entire participating interest of Capricon Senegal Limited (Cairn) in the Rufisque Offshore, Sangomar Offshore and Sangomar Deep Offshore (RSSD) joint venture.
The deal increases Woodside’s participating interest in the RSSD joint venture to 68.33% for the Sangomar exploitation area and 75% for the remaining RSSD evaluation area. Woodside remains the operator.
All the necessary approvals that the deal was subjected to, has been received. This includes the approval of the Government of Senegal, the approval of Cairn Energy shareholders and other customary precedents.
The purchase price of the deal was $300 million, plus a working capital adjustment of approximately $225 million, which included a reimbursement of Cairn’s development capital expenditure incurred since the 1st of January 2020. Additional payments of up to $100 million are contingent on commodity prices and timing of first oil.
Commenting on the completion, the Chief Executive Officer of Woodside, Peter Coleman said, “The development of Sangomar is being executed according to schedule. The Senegal team recently achieved another milestone, with the award of the contract for the operations and maintenance of the floating production storage and offloading vessel which is targeted for delivery and first oil production in 2023.”
“The completion of the transaction with Cairn has simplified the structure of the joint venture ahead of our planned equity sell-down in 2021. The Sangomar development is an attractive, de-risked asset that offers near-term production to potential buyers.”
Woodside’s interest will further increase to 82% for the Sangomar exploitation area and 90% for the remaining RSSD evaluation area, subject to the completion of the FAR acquisition that was announced at the beginning of this month.