Woodside has signed a binding sale and purchase agreement to acquire Capricorn Senegal’s participating interest in the Rufisque Offshore, Sangomar Offshore and Sangomar Deep Offshore (RSSD) joint venture.
Completion of this is subject to the approval of the Senegalese government, Cairn Energy Shareholder approval and other customary conditions precedent, and is targeted for the fourth quarter of 2020.
Following the completion of the complete takeover, Woodside will remain the operator with its equity interest increasing to 68.33% in the Sangomar exploitation area and to 75% for the remaining RSSD evaluation area.
This purchase follows Woodside’s exercise of its pre-emptive rights announced on August 17 2020. This prevented the takeover of Cairn’s entire asset in the field by Russian giants, Lukoil.
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.
READ ALSO: PETROSEN INCREASES STAKE IN SANGOMAR FIELD
Woodside Energy currently holds a 31.89% interest, Capricorn Senegal Limited (a subsidiary of Cairn Energy PLC) holds 36.44%, FAR Ltd recently holds 13.67% due to the recent increase in stake by Petrosen who now holds 18%.
%20joint%20venture.Completion%20of%20this%20is%20subject%20to%20the%20approval%20of%20the%20Senegalese%20government,%20Cairn%20Energy%20Shareholder%20approval%20and%20other%20customary%20conditions%20precedent,%20and%20is%20targeted%20for%20the%20fourth%20quarter%20of%202020.Following%20the%20completion%20of%20the%20complete%20takeover,%20Woodside%20will%20remain%20the%20operator%20with%20its%20equity%20interest%20increasing%20to%2068.33%%20in%20the%20Sangomar%20exploitation%20area%20and%20to%2075%%20for%20the%20remaining%20RSSD%20evaluation%20area.This%20purchase%20follows%20Woodside's%20exercise%20of%20its%20pre-emptive%20rights%20announced%20on%20August%2017%202020.%20This%20prevented%20the%20takeover%20of%20Cairn's%20entire%20asset%20in%20the%20field%20by%20Russian%20giants,%20Lukoil.a%20href=https://ibekachikwu.com/wp-content/uploads/2020/09/f10059b1-6cfe-4665-a7d3-629593ddce6c.jpgimg%20class=size-medium%20wp-image-2647%20alignright%20src=https://ibekachikwu.com/wp-content/uploads/2020/09/f10059b1-6cfe-4665-a7d3-629593ddce6c-300x154.jpg%20alt=%20width=300%20height=154%20//aWoodside%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.a%20href=https://ibekachikwu.com/petrosen-increases-stake-in-sangomar-field-woodside-blocks-cairns-sale-to-lukoil/READ%20ALSO:%20PETROSEN%20INCREASES%20STAKE%20IN%20SANGOMAR%20FIELD/astrongWoodside%20Energy/strong%20currently%20holds%20a%2031.89%%20interest,%20Capricorn%20Senegal%20Limited%20(a%20subsidiary%20of%20Cairn%20Energy%20PLC)%20holds%2036.44%,%20FAR%20Ltd%20recently%20holds%2013.67%%20due%20to%20the%20recent%20increase%20in%20stake%20by%20Petrosen%20who%20now%20holds%2018%.){kind=link}