ConocoPhillips will earn a 25% working interest from Cairn Energy Ltd. in three blocks offshore Senegal.
Subject to government approval, ConocoPhillips will earn the interest in the contiguous Rufisque, Sangomar, and Sangomar Deep blocks where a 2,050 sq km 3D seismic survey has been used to identify prospects.
Cairn will remain operator with 40% interest in the blocks during the exploration phase, during which Senegal’s state Petrosen will have 10%. Cairn in March 2013 farmed into the three blocks, which were previously operated by FAR Ltd.
The first of a proposed two-well program is to spud in the first half of 2014 with the Cairn-contracted Cajun Express rig.
Detailed financial terms are confidential, but ConocoPhillips will pay Cairn for back costs on the blocks and promoted terms of the future exploration expenditure. ConocoPhillips would have the option to operate to develop any future discovery.