FAR questions Sangomar development timetable, suspends Gambia drilling plans
Sangomar oil field partner FAR Ltd. has flagged problems for the project development offshore Senegal due to the fall in oil price and the restrictions caused by the COVID-19 virus.
The company said it is working with operator Woodside and other joint venture partners to explore and evaluate all options to preserve and enhance the value of the development.
Further details—including how costs can be reduced, expenditure delayed, or both and whether there will be any impact on the timeline to first oil—will be released upon completion of the review, FAR said.
FAR added that discussions with financiers are materially compromised in the present market conditions.
“Disruptions caused by the COVID-19 pandemic and the crash of the oil price are presenting challenges to our debt process,” the company said.
The $4.2 billion Sangomar development achieved FID in January (OGJ Online, Jan. 15, 2020). The concept is a stand-alone floating production storage and offtake (FPSO) facility connected to 23 subsea wells and supporting subsea infrastructure.
The FPSO is expected to have a production capacity of 100,000 b/d of oil and will process the oil for direct offloading to export markets via tankers. First oil is targeted for early 2023.
The FPSO is being designed to allow for integration of potential future development phases, including gas export to shore and future sub-sea tie backs.
The joint venture comprises Woodside Energy (Senegal) BV, Capricorn Senegal Ltd. (a Cairn Energy Plc subsidiary), FAR Ltd., and Petrosen (the Senegal national oil company).
FAR has also temporarily suspended drilling plans for its offshore Gambia blocks A2 and A5 where it is operator (OGJ Online, Oct. 1, 2019).
“The (Gambia) project is currently at an early stage and at a good hold-point for reactivation at some time in the future,” the company said. “Other work will be optimized to suit the business requirements and all license obligations will continue. This program adjustment will be done in consultation with our partner Petronas and the Government of Gambia.”