Australian giant Woodside has announced that it is exercising its right to pre-empt the sale of FAR Ltd entire participating interest in the Rufisque, Sangomar and Sangomar Deep (RSSD) joint venture to ONGC Videsh.

FAR Ltd has 13.67% interest in the Sangomar exploitation area and a 15% interest in the remaining RSSD evaluation area. It entered into a Sale and Purchase Agreement (SPA) with India’s ONGC for the entire interest in the Production Sharing Contract (PSC) for the Rufisque, Sangomar, and Sangomar Deep Offshore Blocks offshore Senegal in November 2020.

Woodside will be increasing its stake in the project. It said that the terms of its acquisition will be the same as the FAR and ONGC transaction. It includes the payment of $45 million to FAR and the reimbursement of FAR’s share of the working capital, including any cash calls from 1st January 2020 to completion, and entitlement to certain contingent payments estimated at $55 million.

The acquisition is subject to the approval of the Senegalese government, FAR shareholder approval and other customary conditions.

The Chief Executive Officer of Woodside, Peter Coleman said, “Sangomar is an attractive, de-risked asset in execute phase, offering near-term production. 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.”

“We plan to commence development drilling next year as we progress the project to targeted first oil in 2023.”

This is the second time in 2020 that Woodside has exercised its right to pre-empt the sale of a company’s participating interest in the RSSD JV. In August, it blocked the sale of Cairn Energy’s interest to Russian Lukoil.

If this deal goes through, Woodside will remain the operator with an 82% interest in the exploitation area and 90% of the remaining RSSD evaluation area.