Woodside Petroleum Ltd., Perth, has agreed to a binding purchase and sale agreement with ConocoPhillips to acquire all of the company’s interests in Senegal for $350 million plus a completion adjustment of $80 million.
The purchase covers 35% of three production-sharing contract exploration blocks offshore Senegal: Rufisque Offshore, Sangomar Offshore, and Sangomar Deep Offshore. The stake includes 35% interest in the 560 million-bbl SNE deepwater oil discovery as well as the FAN oil discovery closer to shore (OGJ Online, May 19, 2016; Nov. 20, 2015).
Woodside also has the option to operate the future development of the resource. Current operator Cairn Energy PLC, which has a 40% share of the permits, has indicated it would like to sell down its interest (OGJ Online, Mar. 19, 2013).
Other interest holders are FAR Ltd. 15% and Senegal national company Petrosen 10%.
The purchase has an effective date of Jan. 1 and completion of the deal is expected by yearend, pending agreement from the Senegal government.
Woodside Chief Executive Officer Peter Coleman said the acquisition aligns with the company’s growth strategy by providing an important position in an underexplored and highly prospective emerging oil province. He added that the two existing discoveries at SNE and FAN are world-class, and the permits provide significant exploration upside.
The move also builds on Woodside’s recent agreement to acquire 65% interest in the AGC Profond exploration block to the south in the Senegal-Guinea Bissau joint development zone.